Friday, December 24, 2010

Stabilize Your Current Situation Before You Invest by Ravinder

Stabilize Your Current Situation Before You Invest by Ravinder

Before you consider investing in any type of market, you should really
take a long hard look at your current situation. Investing in the
future is a good thing, but clearing up bad – or potentially bad –
situations in the present is more important.

Pull your credit report. You should do this once each year. It is
important to know what is on your report, and to clear up any negative
items on your credit report as soon as possible. If you’ve set aside
$25,000 to invest, but you have $25,000 worth of bad credit, you are
better off cleaning up the credit first!

Next, look at what you are paying out each month, and get rid of
expenses that are not necessary. For instance, high interest credit
cards are not necessary. Pay them off and get rid of them. If you have
high interest outstanding loans, pay them off as well.

If nothing else, exchange the high interest credit card for one with
lower interest and refinance high interest loans with loans that are
lower interest. You may have to use some of your investment funds to
take care of these matters, but in the long run, you will see that
this is the wisest course of action.

Get yourself into good financial shape – and then enhance your
financial situation with sound investments.

It doesn’t make sense to start investing funds if your bank balance is
always running low or if you are struggling to pay your monthly bills.
Your investment dollars will be better spent to rectify adverse
financial issues that affect you each day.

While you are in the process of clearing up your present financial
situation, make it a point to educate yourself about the various types
of investments.

This way, when you are in a financially sound situation, you will be
armed with the knowledge that you need to make equally sound
investments in your future.

About the Author: Ravinder Tulsiani is a published author who has
written about personal finance, real estate, self-help and online