You have already taken a few important steps in your financial journey, setting goals, building an emergency fund, and saving for retirement. Investing takes your savings strategy and puts an engine behind it. It helps you grow your hard-earned money and beat inflation, which means you can buy more goods and services with the same amount of money over time.

Get started with investment planning is to evaluate your finances and determine how much you should invest. This should include an evaluation of your income, expenses and any savings and assets you have. It’s also a good idea to check in on your financial preparedness and see if you have any prior investments that can help you achieve your financial goals.

Get Started with Investment Planning: Your Roadmap to Success

Next, identify your long-term and short-term financial goals. Clearly defined goals give your plan a clear direction and help you prioritize what needs to be given priority. Moreover, they will also help you determine the appropriate timeline for each goal and thus your risk tolerance.

Your ability to take risks and your time horizon play a significant role in the type of investments you should consider. For instance, if you’re younger, you can afford to invest in more aggressive investments since you have a longer time horizon and can recover from any losses that you may experience along the way. However, if you’re nearing retirement or have other responsibilities, you should consider investing in safer and more stable instruments.