Pay off any high interest debts

It’s generally considered best practice to pay off any high interest debts before you start investing.

It’s also a good idea to have a plan in place for how and when you’ll pay back your other borrowing. 

Create a safety net of savings

It’s a good idea to have at least four months’ worth of essential spending set aside for any unexpected events before you consider investing. 

That way you’re less likely to dip into your investment and spend it rather than letting it build and mature over the long-term.

Get comfortable with risk taking

There are two things to consider with risk. 

First, can you afford it if your investment loses value? 

Second, how will you react emotionally when your investment goes up or down in value? Falls in value can upset new investors and some sell before they have given their investment a chance to recover.  

Invest for the long-term

If you want to access your money in the short or medium term (in less than five years), then investing might not be right for you. 

If you’re looking to invest for five years or more, then you may be more likely to reap the benefits of investing.