Can You Invest?
HtM+ 002: The Investors Readiness Checklist
THE NEW INVESTOR
A step-by-step guide to investing for well-grounded people. My fortnightly (bi-weekly for American readers) letters will take you from beginner investor to managing your portfolio well by the end of the year.
Understand the importance of pacing yourself.
Complete a readiness checklist to assess whether you are in a position to start investing.
MONTTY’S RULE #2
Good savers become good investor
Saving is a part of the story
There is an ongoing debate about whether you ought to save1 or to invest. We addressed this last time by introducing investing as a way to preserve the value of your money longer-term. In an either-or scenario between to save or to invest, investing should be the choice for long-term goals.
Saving2 as a habit is not something we will debate. It is a necessity.
Unless you have something spare after all your expenses have been covered, the question of whether to save or to invest is redundant3.
Whether you can invest is a useful question for all new investors to ask. The answer should be based on:
Current disposable income
Short, medium and long-term financial priorities
Level of financial acumen (and willingness to learn)
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