Oftentimes, you’ll see smart investors putting money to various savings products to have enough coverage in times of emergency such as sudden unemployment. Some see to it that they have at least 6 months of their income savings so know that there will take out something whenever they need it.
Clear Your Debts
Also, there’s no investment strategy anywhere that can pay off or with less risk compared to paying off high interests debt that you have.
Keep this in mind, if ever you owe money that has high interests like on credit cards, the smartest thing that you could do is to settle any outstanding balance as fast as possible.
Understanding Dollar Cost Averaging
With an investment strategy called as Dollar Cost Averaging, you will be able to protect yourself from risks of investing your money at wrong period. This is by means of following patterns of constantly putting money to your investments throughout.
By performing regular investments on the same time, you’ll get more investment when the price is low and less investment when the price is high. Those who are making lump-sum contribution to individual retirement account whether early in April or at the end of calendar year, it is highly recommended to take into account “dollar cost averaging. This is true especially when dealing with volatile market.