It is risky to drive a two-wheeler without a helmet. Right? Just knowing how to drive a motorbike is not enough. You need to adhere to all the safety protocols to protect yourself from unexpected vagaries. Similarly, while by now you must have understood how to begin your investment journey, certain safety nets should be in place before you start. These are just basic priorities that must be taken care of before you begin your journey of creating wealth-
- The first thing is to have health insurance for yourself and your family to cover medical expenses.
- Secondly, if you have dependents, it is a must to have a term life insurance cover so that your family is financially stable in case of any unfortunate event.
- Next is to have an emergency fund that should cover your expenses for at least six months.
- Last but most important is to clear off your credit card overdue before you start investing. Earning 12 per cent returns on your investments and simultaneously paying 40 per cent interest on a credit card loan doesn't make sense at all. So, pay off that expensive debt, be more disciplined in your expenditure, and then start investing.
All these steps would ensure that no unforeseen events bring any financial burden, compelling you to distort your investments and derail your wealth creation journey.
Now that you have finished reading this course, pat yourself on the back and pamper with your favourite dessert! After all, you have done the hardest thing in the entire investing journey, i.e., making a small start by educating yourself. The way forward would make you a wiser investor for sure.