Due to the coronavirus outbreak, there has been an economic crisis that’s happening globally. People may be confused about whether to invest their money or not. Despite the economic downfall, a lot of Americans are shown to have saved more since 2020, considering that many of us are staying in – working from home and traveling less.
If saving enough money applies to you, should you continue saving it or invest it? Our financial services in Minnesota can help you answer this question by leading you through a self-assessment process.
- Are your emergency savings fully funded?
Once your emergency fund is in place, which should be stocked with 3 to 8 months’ worth of living expenses, you may consider investing the extra money you’ve put aside.
- When will you need the money?
If your goals of using the money are short to medium term, you might want to continue saving it rather than investing. Short to medium term means 3 to 5 years. But if your goals are long-term, you can invest in the stock market.
- How much risk can you tolerate?
Calculate your risk tolerance – your ability to withstand the idea of losing money – on a couple of factors, such as age, time horizon, and amount of money you have to invest.
The first step in becoming financially successful is saving. Once the assessment is done and you yield a positive result, you can then pursue investing. To be safe, consult a financial advisor to help you out or call our business consultant in Minneapolis, Minnesota.
We, at Global Alliance Entrepreneur, can lead you to the right path when it comes to finances and business ventures. We also cover businesses like home health care services!