Smart Money Starts with Smart Prep: 6 Things to Do Before You Start Investing
I wasn’t expecting a life lesson at 36,000 feet. I also wasn’t expecting turbulence, a chatty co-passenger, or a cup of coffee that would change how I explain personal finance forever.
But that’s exactly what happened on an early morning flight from Chennai to Mumbai.
And now, dear reader, I invite you on that flight with me no boarding pass needed. Just curiosity, and maybe a notebook.
☕ Window Seat, Coffee in Hand
Having just wrapped up a financial literacy session the previous day, I was hoping for a peaceful flight. Window seat? Check. Noise-cancelling earphones? Check. Inner peace? Pending.
Just when I was ready to doze off, the gentleman beside me late 60s, Nehru jacket, reading The Hindu turned and asked:
Young man, what do you do for a living?
I smiled. I’m a Personal Finance Consultant. I help people grow their money smartly.
Then came the twist:
Tell me one thing. Do you clean your kitchen before cooking or after?
Before, I said, still unsure where this was going.
He smiled. Exactly. So why do people jump into investments before sorting their financial kitchen?
Boom. That’s when I decided to walk him and now, you through the 6 essential steps to take before investing your first rupee.
🥇 Step 1: Find Your Emotional Why
Why do you think people invest? I asked.
Because Instagram influencers say SIPs make you a crorepati in 15 years, he said with a grin.
Exactly.
Investing without a goal is like ordering an Uber without a destination.
- 📌 Want to travel the world in 5 years?
- 🎓 Save for your child’s education?
- 🕰️ Retire early?
Clear goals give your money direction. Without them, it drifts aimlessly much like my cousin at a wedding buffet.
💸 Step 2: Track Every Rupee Like It’s a Mischievous Child
How much do you spend monthly? I asked.
Around ₹40,000, he said confidently.
Fifteen minutes later, our list hit ₹67,000.
People always underestimate their expenses. Subscriptions, food delivery, impulse buys, UPI donations to random babas it all adds up.
Use apps, spreadsheets, or notebooks. Know where your money sneaks away.
🚨 Step 3: Build Your ‘Turbulence’ Fund
Right on cue, turbulence hit. The seatbelt sign blinked on. Uncle gripped the armrest.
Don’t worry, I said. This is why we need an emergency fund.
- 👨⚕️ Medical crisis
- 💼 Job loss
- 👨👩👧👦 Family emergency
Save 3 to 6 months of expenses in a liquid fund or savings account.
This is not investment money. It’s your financial parachute.
💳 Step 4: Kill Your High-Interest Enemies
Got any loans? I asked.
Just a credit card. I pay the minimum due, he replied proudly.
Houston, we have a problem.
Credit cards charge 30–40% annually. Paying them off gives you the highest guaranteed return.
Before investing, destroy your high-interest debt.
🎯 Step 5: Know Your Investor Personality
He said he invested in stocks based on WhatsApp tips. When the stock dropped 40%, he sold and bought gold.
That’s not investing, I said. That’s emotional gambling.
Ask yourself:
- 📉 Can I handle market dips?
- 🧠Am I calm or anxious under stress?
- 📊 Do I prefer safety or growth?
Know your risk appetite. Investing is not one-size-fits-all it’s like a custom made kurta. It should fit you.
📘 Step 6: Learn Just Enough Finance to Not Get Fooled
No need to become Warren Buffett. But you must know:
- What is an SIP?
- How compounding works
- Mutual funds vs FDs
- What is capital gains tax?
If you don’t understand your money, someone else will use it for their gain.
🛬 As We Landed in Mumbai…
The pilot announced landing. Uncle folded his newspaper and said:
Beta, I never thought about these things. I always assumed investing was step one.
I smiled and replied:
Investing is not the first step it’s the reward. First, fix your financial foundation. Then build wealth.
📲 Want to Get Started the Right Way?
If you want to stop guessing with your money, here's what to do:
- 👉 Message me on WhatsApp: Click here
- 👉 Book your FREE personal finance consultation: Schedule Now
💬 Leave a comment below if this story made you smile, think, or scream This is so me!
Smart investing doesn’t begin with money. It begins with clarity.
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