Want to Start investing in Stock Market

As lot of people keep asking me regarding the specific financial advice when entering a stock market, this quick-read article gives you some pointers before you jump into stock markets

Start Early

Best advice anyone can give to you is to Start Early and Early means NOW
Whether you are earning 5k/month or 5lac/month, you need to start asap.
Only when you start early, you can finish or reach your goal early

Emergency Fund

A must step!! Build an emergency fund equivalent to 3-6 months expenses
Understand the importance of emergency fund. There is no second thought about it.
Always maintain the emergency fund and review it on yearly basis.
Increase the emergency fund every year

Read in detail : Emergency funds

Buy Life Insurance & Health Insurance

These two insurances should be in addition to any insurance cover your employer provides.
Buy an appropriate term policy life cover (minimum 25 times of annual income)
Buy an adequate health insurance (minimum 20 lacs)

Also Read : You should invest in Stock Market if

Also Read : You should not invest in Stock Market if

Become Debt free

Apart from home loan, there should not be any debt.
Clear off your credit card debts, gold loans, car loans.

Establish a household budget

Maintain an elaborate budget with expenses under different heads
Don’t run away from noting down every single expense ( every rupee for that matter)
Keep %age of money for stock market investment and %age of money for other asset classes
Follow Save first, spend later approach.

Follow Goal based investing

Split your saving across different and appropriate set of investments
Park your money in Fixed deposits, Recurring deposits, liquid funds, debt funds, gold.
Start investing in Stocks and mutual funds when you are done with above steps

In case you have any questions/ queries, please feel free to reach me through Contact Form

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