Should you even be investing?
I have friends who have started asking me about personal finance. I’m extremely honored and happy that they’ve come to me.
But the one topic I always get is, “should I invest in X stock (usually TSLA, GME, AMC, NOK, CCIV)?”
My response: “Wait, before we get to investing, are you in a position to be investing?”
Here’s what I’ll ask:
1. Are you currently paying off your necessary living expenses (utilities, internet, water, food, shelter)?
2. Are your credit cards paid in full? And are you able to do it EVERY month?"
3. Do you have an emergency fund (>3 months)? — caveat: if your parents are aware that they are your emergency fund, then you may not need this…
4. Are you willing to be consistent (even if it’s a small amount)?
The rationale?
If you answer no to any of the above questions, you SHOULD NOT be investing.
#themillionimpactmission
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*This post is for informational purposes only and should not be considered specific investment advice.