Before everything else, protect yourself from unexpected financial troubles to keep your investment plan on track
Chapter 9 • 21-Jul-2023
Just like driving a two-wheeler without a helmet is risky, it is similarly dangerous to invest without certain safety nets.
So, here are a few safety rules before you put your money in the fast lane of investing:
Rule 1: Get health insurance for yourself and your family to cover rocketing medical expenses.
Rule 2: If you have dependents, it is a must to have a term life insurance cover. Your family will be financially stable in case of any unfortunate event.
Rule 3: Create an emergency fund. It should cover your expenses for at least six months.
Rule 4: Lastly, clear off your credit card overdue. Earning 12 per cent returns on your investments and simultaneously paying 40 per cent interest on a credit card loan doesn't make any sense. So, pay off that expensive debt, and then start investing.
All these steps will ensure no unforeseen events compel you to distort your investments and derail your wealth-creation journey.
Now that you have finished reading this course, pamper yourself 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 is only brighter.