Preparing an emergency fund and determining risk capital are the two most important things one should take care of before implementing a major investment strategy.

It is important to focus primarily on short-term gains and losses when beginning a long-term investment strategy.

Which step in an investment strategy ensures that you have a predetermined way out of an investment in the event it fails?

A key step in preparing to invest is minimizing your debt.

Greed and fear are the two most common emotions that often affect investors negatively.

Just like your budget, your investment strategy is likely to change over time.

Andy’s current investment returns an average 2%, while his debt interest averages 14%. Andy should focus on paying off his debt before considering new investments.

Jarrell has begun contributing toward an emergency fund. He believes that, in case he lost his job, it would take him around 6 months to find new work. Based on this prediction, for how many months’ worth of bills, at a minimum, should Jarrell have money saved up in his emergency fund?

As long as you make good investments, you don’t have to worry about potential tax liabilities resulting from them.

Although it’s important to have savings, money deposited in a traditional bank savings account is not typically considered a good investment because the interest paid to you is usually less than the rate of inflation.

While one or more trusted professionals can certainly help you with investing, your financial decisions are ultimately your own and you should become knowledgeable enough to evaluate advice you receive from your financial advisors.

If you pay off a credit card that charges 25% interest before the interest charges are added, you have effectively made a 25% return on your investment by paying off the credit card.