2 things everyone should have before they start investing: a budget and a savings account - Business Insider

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Investing is a great way to build wealth, but first you need to make sure you can afford it. Presented by Fidelity

. With stock prices plummeting, it was a perfect opportunity to buy shares of companies for a fraction of the price. If you've also been considering jumping into the market, consider first if you can actually afford to invest.

If you have extra cash laying around or just know you need to get started, investing now may seem like a no-brainer. However, there are two things you should make sure you have figured out beforehand: a way for reduced spending money to fit into your budget and a healthy1. Fit investing into your budget

Investing always sounds like a great idea, until you realize that any money you put into investing is money you take away from being able to spend on other things such as food, travel, or entertainment., then you need to take a step back and take a hard look at where your money is going and if it actually makes sense to invest.

By first creating a budget and then building in a line for what will be invested, you will prevent any surprises when it comes to the month's cash flow. If you don't adjust your spending to account for the amount that is going towards investing, it's likely you will fall back on credit cards or have to sell out of said investments later down the line in order to cover a shortage — neither of which are ideal situations.

 

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