Investing opens a world of possibilities by creating new streams of income. The additional earnings direct money to your bank and give you more capital to invest in yourself and the life you’ve always wanted.
Think travel, small luxuries, retirement fund, and laying the foundation for building wealth—all of these become more attainable with investments complementing your income. However, investments do come with risks.
Knowing where to put your money and when can significantly impact your investment success. That’s why we recommend assessing your finances ahead of investing.
Unsure if you’re ready to invest? Go through the list below to see if you should start investing now.
1. You are debt-free.
It might be an excellent time to explore investing if you are at that point where you no longer worry about interest rates on outstanding debts (credit card payments, high-interest loans). The key is not having interest payments take away from your budget. Being debt-free also reflects positively on your credit rating, which lends you more financing options for your investment.
2. You have enough savings.
Factor in the budget for emergencies and personal expenses regardless of your investment. Setting aside enough savings for the unexpected avoids putting you in a position where you have to pull out from an investment or forego higher earnings for more pressing needs. It’s also good to start with lower-risk investments like multifamily properties, which offer reliable returns without the high risk from stocks or similarly volatile investment vehicles. The best investment matches your risk appetite, ideal returns, and strategy (passive or active investments?), without putting a dent in your emergency funds.
3. You earn more than you spend.
Adopting an investor mindset means training your eyes on where your resources can give you the most returns. This might mean putting off expenses in favor of investments or staying within budget to ensure all your commitments are accounted for.
The simplest way of putting it is, earning more than you spend. You don’t even need to have a sizeable budget, only one that is within your means.
Financial Stability Through Investments
Do you find yourself ready to invest? Our team of experts at Makaan Investment Group is here to help you start on the journey to build wealth and the life you deserve.
As a trusted partner in passive real estate investments, Makaan has supported many investors in finding opportunities that match their investor profile in Houston, Texas, and other states.
We understand that investing takes courage and reward our clients by delivering the best possible outcomes on their multifamily properties. Contact us today to start on your new or next venture.