Imagine this scenario - you have received a windfall of $25,000, and you know you should invest for the future. Before you sign up and sign away that money, ask yourself this question - if you’re living paycheck to paycheck with high interest credit card companies hounding you via letter, telephone and via ninja agents pounding on your door, is it a good time to start investing? The answer is obvious, “Of course not!”
The easiest way to do this is to pull your current credit report. It’s extremely important to get a credit report at least once a year, and it’s very important to read your credit report and find out what’s on it, so that you can get all the negative items on your credit report prior to starting to invest in the markets. For instance, .if you saved up $25,000 that you want to invest, you are better off cleaning up the credit first then taking what’s left and investing that in the markets.
First, get your latest credit report. You should, in reality, do this once a year. It’s very important to read your credit report, find out what’s on it, and clean up any negative items on the report as quickly as possible.
Warning! If you go with the faulty logic that all you need to know is that you should try and make an investment in your future, you might as well drive books down the driveway. Yep, drive books and watch pumpkins fly. If you go for this hype without clearing up bad or potentially bad situations in the present, you might as well start “Chunkin Those Pumpkins”, because you are going to be about as successful long-term as tossing a baby grand piano across the room.
Many people make a priority mistake when they decide to invest. In order to avoid that, see which are paying out on a monthly basis, look at all the dispersal’s and get rid of the expenses that are frivolous.
Let’s take an example of one thing you might be able to get rid. If you have credit cards with all that high interest, pay them off and get rid of them. Pay off all those high interest loans along with those credit cards as quickly as you can, then refinance any high interest loans that are left, and replace them with loans that are billed at a lower interest rate. In the long run it will make better sense to pay down debt, and you will see over time that this is the wisest course of action.
Once your financial status is good then enhance your monies with sound investments for the future. It now makes little sense to invest your money. When your bank balance is bad or problematic, or if you’re living from paycheck to paycheck and paying bills is a struggle, that is not the time to think about tying up your cash. Investing your dollars in rectifying your adverse financial issues first would make better sense.
This way, when you find yourself financially solvent once again, you will be informed and able to make a decision about what types of investments you want for your future.
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