Navnish Bansal says that when you are brand-new to the stock market, you enter with lots of dreams and expectations. You might be preparing to invest your savings and make lakhs in return.
There are hundreds of examples of people who had produced huge wealth from the stock market; nevertheless, there are also thousands who didn’t.
Here are a few cautionary points for people who are just entering the world of investing.
Pay down your ‘High-Interest’ financial obligations
If you have any kind of high-interest paying financial obligations like personal loans, credit card dues, financial obligations, etc, then pay them. Navnish Bansal things that the interests of these loans can be even as high as your returns from the marketplace. There is no point in losing your energy to provide all the returns you made from the marketplace as interests of your debts. Pay down these financial obligations before entering the marketplace.
Invest just your extra/ surplus fund
Navnish Bansal says stop right there if you are planning to invest your next semester tuition charge, next month flat lease, cost savings for your daughter’s marital relationship which is going to happen next year or any comparable reasons.
Only invest the amount that won’t affect your life. In addition, investing in debts/loans is really a bad idea, particularly when you are brand-new and discovering how to invest in the share market.
Keep some cash in hand
Navnish Bansal tells us that the cash in hand doesn’t just serve as your emergency fund. It likewise serves as your key to freedom. You can take big steps like changing your little flat, or stop your frustrating task or merely shifting to a new city, only when you have cash in hand.
Do not get trapped by investing all your money and later on losing your liberty. Do not sacrifice your individual freedom in the name of monetary flexibility.
Navnish Bansal 