Many people wonder when is the time right to start investing. There are many resources on the internet that provide information as well as a simple way to follow through which makes it easier today than it has ever been before. With a click of a button, one can invest into any company they would like. Although the ease of access is nice, if one is not careful, unwise decisions could be made. Here are some tips to follow when deciding how and when to invest.

1. Pay off Debt: It is always good to pay off high interest and consumer debt first before investing. If you can funnel extra funds to paying off debt first before majorly investing, one will receive a guaranteed return because they won’t owe as much interest. If you are investing, the interest gained will likely not be as high as the consumer interest paid, and while you could gain more interest through investing, no one truly knows what the market will do; therefore, it is not guaranteed.
2. Create an Emergency Fund: An emergency fund is often defined as 3-6 months of living expenses that can be easily accessed with short notice. Whatever amount of money you decide to save, it is important to define when you can use those funds so that you aren’t pulling from the savings all the time, but at the same time, so that you are pulling from it when needed. So how is this related to investing? The time will come when your roof needs replaced, your furnace goes out, your car breaks down, etc. and you will need a little extra money. If this money is not already set aside in an easy to access account, you will either have to take a loan out and pay the interest or pay the fees associated with pulling money from an investment early.
3. Save for Major Purchases: You may be able to use investments to save for major purchases but it is important to understand the terms around an investment before deciding to invest in order to make sure you can pull the money out when it is needed for these major purchases.
4. Know Your Why: As young adults, it’s common to hear “start investing while you are young.” While they have a point, you must understand your why before taking action. Are you wanting to start investing for retirement or for another purpose? Knowing the answer to this question will help you know whether it would be advantageous for you to start investing as well as what type of investments to pour into.
5. Learn as Much as You Can: Reading books or online articles on the subject of investing is a great start to learning how to invest as well as learning about the market. You might also dabble around on apps like Acorns and Robinhood. And if you aren’t sure what resources you can trust, find a financial advisor in your area who would be willing to mentor you and share his or her knowledge. Always makes sure to learn as much as you can about the market before you start investing.
6. Diversify Your Investment: Diversifying investments simply means to not have all your money in one industry or type of investment. By diversifying, someone is more likely to receive a higher return as well as have less risk in the market.
7. Start Young: If someone is able to start investing young because they have little to no debt, that is amazing! The earlier someone starts investing the more return they will likely receive. Having money in the market long term allows individuals to ride out the hard times but also earn interest which then in turn earns more interest (called compound interest); therefore, allowing the funds to grow and grow.

All in all, investing is a tool to help finance the future, and by following the above steps, you can make wiser decisions as you continue to learn and grow in this area. Good luck!