{"id":7661,"date":"2022-10-11T00:08:53","date_gmt":"2022-10-10T13:38:53","guid":{"rendered":"https:\/\/adelaideprivatewealth.com.au\/six-steps-to-get-ready-to-invest\/"},"modified":"2022-10-24T13:43:47","modified_gmt":"2022-10-24T03:13:47","slug":"six-steps-to-get-ready-to-invest","status":"publish","type":"post","link":"https:\/\/adelaideprivatewealth.com.au\/six-steps-to-get-ready-to-invest\/","title":{"rendered":"Six steps to get ready to invest"},"content":{"rendered":"
Planning is the key to successful investing. Creating a plan will help you find investments that fit your investing time frame and risk tolerance, to help you reach your financial goals sooner.<\/p>\n
Before you invest, review your financial situation.<\/p>\n
Write down what you owe (your debts) and what you own (your assets). For your assets include your:<\/p>\n
super<\/p>\n<\/li>\n
home<\/p>\n<\/li>\n
savings<\/p>\n<\/li>\n
other investments<\/p>\n<\/li>\n<\/ul>\n
This\u00a0net worth calculator<\/a>\u00a0can help you record this. Writing down what you own and what you owe will help you see what savings you can invest. It will also help you see\u00a0how you can diversify<\/a>.<\/p>\n Then write down your income and expenses. This\u00a0budget planner<\/a>\u00a0can help you track what money is coming in and going out. This will help you see how much you can put toward investing regularly.<\/p>\n Write down your financial goals. For each goal include how much you\u2019ll need and how long you have to reach it. For example, taking a $10,000 holiday in one year, or reaching $500,000 in superannuation before you retire.<\/p>\n Then divide your goals into:<\/p>\n short term (0 to 2 years)<\/p>\n<\/li>\n medium term (3 to 5 years)<\/p>\n<\/li>\n long term (5 years or more)<\/p>\n<\/li>\n<\/ul>\n Setting and defining your financial goals will help you pick the right investment to reach each goal.<\/p>\n Investment risk is the likelihood that you\u2019ll lose some or all the money you\u2019ve invested. This can be due to your investment falling in value or not performing how you expected. All assets carry investment risks \u2014 some are riskier than others.\u00a0<\/p>\n Risks that can affect the value of your investment include:<\/p>\n2. Set your financial goals<\/h3>\n
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3. Understand investment risks<\/h3>\n