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

Start NOW
Start NOW
  • 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
Finish Early
Finish early

Emergency Fund

Emergency fund is a lifeline
Emergency fund is a lifeline
  • 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
Goal Based Investing
Goal Based Investing

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

Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.

Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.

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#Marathoner#Investor #Cyclist #Foodie#Traveler #Helping people in finances to fitness

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