A great investing opportunity does you no good if your finances aren’t prepared to take advantage of it.
It’s true that there are a great many opportunities out there. Indeed, many of us have financial opportunities every day — even if we don’t recognize them. You might even have access to a great investing opportunity.
But that opportunity does very little for you if you are unable to take advantage of it.
Prepare Your Finances for an Investing Opportunity
A few years ago, the stock market was in pretty bad shape. While many people were selling, I upped my monthly investment for my emergency fund. Being able to increase my regular investment at that time has meant that the extra shares of the ETF, bought “on sale”, have resulted in some pretty solid gains by now. I was able to do this because I live within my means.
An investing opportunity does you no good if you can’t take advantage of it. This means that you need to get your finances in order so that you can take care of opportunities that come along, whether you want to put a down payment on a rental property that has dropped in price, or whether you want to boost your retirement account contributions, or whether you think that there is a promising IPO for you to invest in, you need to be ready.
If you want to prepare your finances for an investing opportunity, there are some basic things you need to do:
- Live within your means.
- Work toward paying down your consumer debt.
- Save up money in a special, liquid account so that you can tap into it when you have the chance to invest.
- Educate yourself about investing, and various assets. Learn about how investing works so that you make better investing decisions when the chance arises.
- Start small and simple, and don’t get caught up in needing to have a huge amount of money right now.
Having your finances in order can prepare you to take advantage of opportunities when they come in your way. Consider your situation, and figure out what you can do to be ready.
Watch Out for Investing Scams
Of course, there are plenty of legitimate investing opportunities. Preparing yourself to take advantage of them makes sense. However, you also need to be on alert, and know the difference between an investing opportunity and an investing scam.
Be on the watch for those who promise you high gains with low risk, as well as those who try to make you feel like you are an “insider”, getting in on “special” information that no one else has access to. And be especially wary of those who insist that you borrow a great deal of money, or drain your emergency fund, in order to invest in a “one time” opportunity. If you feel any pressure on you to make a fast decision, there is a good chance you are dealing with a scammer.
You want to be ready for a true investing opportunity. Get your finances in order, and learn about investing. That way, your finances will be ready when a true opportunity comes along, and you will be less likely to be taken in by a scam.