How To Start An Investment Program

If you are just beginning an investment program, the first two things you want to do before you start are pay off your credit card debt and build up an emergency fund.
Most experts and common sense dictates that you set aside some money in case of emergencies. Investments are usually long term in nature. Because of that you don't want to make an investment, have an emergency crop up and then have to tap into your investment account, especially if the market has declined in value.

In addition, it makes sense to pay off credit card debt with high interest rates first. The likely that you'll earn a return of eighteen to twenty percent especially today is not likely to occur. Also do to the fact that you have to pay a commission to trade and pay taxes on any gains, your best investment is in reducing your debt. This will give you a higher return without commission or taxes most likely.

Regardless of your debt, you should start setting aside a fixed amount of money each paycheck into an emergency fund. Over time this amount will grow. Put it someplace you will not touch it. Everything else use to pay off your debt.

Once you have done that then take the money you were spending and start putting it in an invesment account. If you don't have enough to open an account at a brokerage, ask them if you can still open it and start putting money into it. Sometimes they will let you do it that way. If not, choose another brokerage or put the money in a savings account to at least earn some interest in the meantime. Check around for a good interest rate as most banks in your neighborhood do not pay any interest rates. However, you might find one online that will pay a much much higher rate.