Testing the Waters

If you are not among the many with their heads in the sand (still not necessarily a bad move) or you have but think you may be ready to come up for air…What should you be doing?

 

Guess that really depends.

 

I am building my wish list of stocks and desired entry points and will likely start nibbling soon. I have had some discussions with my youngest brother about investing- he tries his best to stay awake but I see his eyes glaze over as soon as I say the word “stock” and he realizes I am not talking about food.

 

Baby steps.

 

He has a lot going for him…cash, minimal expenses, no debt. Sure he works freelance in the film industry and now is traditionally a slow period but he has built up a sizable emergency fund to take care of unforeseen expenses.

 

Do you have debts? How much are you paying to service these debts?

 

Have you started to track your expenses? It may seem silly to write down that $1.49 large double-double from Tim Horton’s but keep going…it will all make sense in a few weeks. In the meantime, look at what you owe on the items you have already purchased- the stuff that is nestled in its original packaging or the clothes hanging in the closet with the tags still on- you know, the stuff that you and your credit card company own. Hmmm…kind of hurts when you think about it in those terms, doesn’t it?

 

Do you have an emergency fund? Do you know what an emergency fund is?

 

If you haven’t set anything aside and are still living paycheck to paycheck…get back to me after you have been tracking your expenses for a few weeks.

 

It can be exciting to think about the stocks you may want to cherry-pick (or maybe I need a life) but dealing with your debt and setting up an emergency fund is paramount.

 

You can’t control what is going to happen in the market but dealing with your debt and setting up a cushion for those unexpected curve balls that life can throw your way is and the impact of each should not be underestimated.

 

 

I personally would not stick my toe into the stock market without having dealt with my debt and with a sizable emergency fund in place- but I’m crazy that way.

 

Learn to walk first…It can happen more quickly than you think.

 

But, whatever you do, make sure you can sleep at night…

 

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~ by angryegg on November 21, 2008.

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