Factors to Consider Before Investing

One of your budgeting goals may be to have extra money that is not spent during the month.

You may be accumulating this extra money to spend on something big within the year without going into debt – for things like a new furniture or gadget.  For this, you need to accumulate your money in a savings account.  The savings account may be earning you next to nothing in interest, but it will keep your money safe for the purchase.  A savings account is a good place to keep your money if you have a short term goal for saving.

Also, the money that you save for the long term is going to be affected by inflation.   Inflation, which is the rising price of things, makes your money worth less and less over time.  The interest you earn on savings account usually cannot cope with inflation.  You need to put it in an investment where your money grows to retain its value or even increase in value.

Before investing, you should first consider these factors that will determine when, where, and how to invest:

Link: https://www.budgetingincome.com/factors-to-consider-before-investing/