How do you know if you are ready to start investing? More often than not, people wait for the ‘right time’ to invest – and in reality – there is no right time to start. Starting as soon as you can, will provide the best opportunity to allow your money to grow over the long-term.

This article looks at some things to ask yourself before opening that investment account. However, do note – everyone’s personal circumstances are different.

Investing has never been more accessible than ever before, with low-cost platforms, information freely available and low deposits required by platforms.

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Emergency Fund

Regardless if you want to invest or not, saving an emergency fund is important.

An emergency fund should hold 3 – 6 months worth of expenses that is easily accessible, to help you out in case of an emergency. I have an entire article on what exactly an emergency fund, and how to go about funding one.

You are able to fund your investments

Do you have money to put towards your investments on a monthly basis?

Do you know where you money is going every month, if not start tracking your expenses. Combine this with making a budget on a monthly basis so you can tell your hard earned money where you want it to go. Create categories within your budget, such as rent, bills, groceries and add investing to that.

If you want to put as much towards your investments, look at ways to increase your income. You can either find ways to work towards a promotion at your job, or even change company if you expect to receive a bigger increase. For other ways to increase your income, read this post.

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Research – investment platform, investment options

There are a huge range of investment options out there, including investment platforms, ISA’s and index funds / ETFs / single stocks to invest in.

You will also want to understand your attitude to risk as well as how long you want to invest your money for. Ideally you should be putting this money away into the investments for 20 – 30 years.

Understand risks

You will have to understand that your investments can go up as well as down, due to many factors! Therefore you will have to be aware of your risk level with your investments, as well as how much money you are okay with to invest in.

You can reduce the risk with your investments by investing in index funds instead of single stocks and researching the investment before putting money towards it.


Make sure you carry out your research before going ahead to start investing.

If you have any further questions or thoughts, go head and book a 1-1 with Simi with more information available here.

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