How do I know if I'm ready to invest?

Remember when we discussed #goals? As in how much you should save to set yourself up for success. 80% of earnings is for spending (50% for life’s needs, 30% for wants like experiences that make life worth living). So the other 20% is for the future you - that’s your money for investments.

The questions to ask yourself before you begin investing are:

How far into the future do you need those future dollars?

If you’re thinking about getting an apartment in the next couple years, you want to take less risk with the money vs if you don’t need the money for at least 3-5 years.

Do you earn enough to cover life-expenses?

If 80% of your income covers all your life spendings and you have some extra savings to cover emergencies, then yes, start investing the extra 20%. But if NOT, don’t sweat it yet - don’t borrow money to cover basic life needs just to carve out funds to invest! Not a good tradeoff.