Top signs that you are ready to start investing

Making an investment can be a hard decision, but knowing when to start investing can be even harder. After all, you may have no idea if it is the right time for you to start with your new project and the last thing that you need is to invest a chunk of your savings, only to find that you need that money for something else.

Retirement

If you are edging close to a retirement age and you know that you have a solid pension then there is a high chance that the right time to invest is now. The main reason for this is because when you retire with a good pension, the rest of your life is paid for. You have probably also paid off your mortgage as well, not to mention with the kids moved out, you have very few expenses. This means that if you were to invest some of your spare money, not much can go wrong and it is impossible for it to impact your life too much.

High-Interest Debt

You don’t need to be retired in order to invest in something like Sprott Money silver coins online. In fact, you can start investing when you are still at university. The main thing that you have to make sure of is that you don’t have any high-interest debt. If your debt has an interest rate of 7% or higher then it’s a good idea for you to concentrate on paying this off before you start investing. The main reason for this is because you would pay more to carry that debt with you than you would earn by investing your money. Things like credit cards often carry the highest interest rate of debt, with cars, mortgages and student loans not trailing far behind.

Emergency Funds

Emergency funding is money that you have in the bank that will help you out of a sticky situation. It could help you if you happen to lose your job or it could even happen if your car needs to get some new tyres fitted. You can also use part of your emergency fund to invest, but make sure that you don’t use it all. After all, your emergency fund is aptly named for a reason and if your investment goes south then you do need to make sure that you have something to fall back on if needs be.

Goals

If you are planning to buy a house but it is more than 5 years away then you really are at a point in your life where you can invest. The main reason for this is because any money that you are going to need in the next 5 years does not belong in the world of investment. Sometimes you may need to wait years in order to get a solid return on your payment and this is the last thing that you need when you are trying to take out a mortgage, a car loan or anything else of the sort. So work out your goals in the next 5 years, and any money that isn’t going to contribute to those goals can be invested.