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Where Do I Invest?

Many people struggle with deciding where to invest, given multiple voices, each giving varying advice on how to approach investing.

 

Related Article: What Is Financial Freedom?

 

We at Debt Free Living 254 believe that your investment choice should be determined by where you are on your financial life journey, your life realities, and how well you understand an investing option.

 

Where Are You On Your Financial Journey?

At Debt Free Living 254, we look at your finances as a journey starting from where you build up an emergency fund, get rid of non-mortgage debt, and invest as you get rid of mortgage debt.

 

Where you are on your financial journey should determine where you invest.

 

For example, if you are working on building an emergency fund, you could opt for Money Market Funds (MMFs) as a form of investment.

 

Related Article: What Is A Money Market Fund (MMF)?

 

Your Life Realities

Your life realities can determine where you invest.

 

Let's say you have children you are paying school fees for and are financially at a stage where you have set up a fully funded emergency fund (FFEF) and have freed your income from non-mortgage debt, are investing at least 15 percent of your income towards your retirement, you can depending on the age of your children, choose to invest in investment vehicles like Money Market Funds (MMFs), treasury bills and bonds.

 

Related Article - How To Calculate Your Emergency Fund

 

Only Invest In What You Understand

The key to minimizing the risk associated with investment options is taking time to understand how they work, as the knowledge will help you navigate the challenges you may face on your investment journey.

 

Be intentional about keeping up-to-date on your investment options.

 

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