When Is It Time To Begin Investing?

In previous posts, we talked, listed, and shouted about the benefits of investing. Maybe you’ve read our blogs about why people who begin early have an extensive advantage over those who wait, or why dollar-cost averaging makes sense for the person who (adeptly) is looking toward long-term gains. However, you may have read every word, watched our videos, and walked away from our content agreeing with what we said—in theory. In other words, you may be in your thirties, and whatever money you earn goes out just as quickly. As much as you want to invest and build your financial future, you still need to pay your bills, put food on the table, and provide for your family. 

We understand. Believing that investing is for everyone is a cornerstone of Worth Advisors, LLC. If you fit the description of the person we described above, then we are just as eager to serve you. Though you may not be ready to make significant investments, you can still work toward being in that position. Knowing how much money is coming in and out of your house (cash flow) is actively building your future. With this in mind, we want to explain your financial position before you begin investing because we want to encourage you to take a step toward a better financial future. 

Where It Begins

Your first step is ensuring you have a positive cash flow plan, which you must keep. This includes streaming services, eating out (or paying the additional costs associated with things like DoorDash), and anything else that is a fundamental necessity. Don’t look at it as cutting out the things you enjoy; think of it as paying yourself before you pay others. If you have to choose between buying a new coat or saving money, select the latter, especially if you already have a coat. This requires discipline, but if you choose the coat, you may do so to your detriment. 

Putting money into savings is a step forward, but it isn’t the end result—not yet, anyway. So how much money do you need to have in your savings account? The money in your savings account is your emergency reserve. You need to have enough money to last you twelve months. However, that doesn’t mean all that money should be in your bank. If your income was suddenly shut down, how much money would you need to survive for three months? That is what goes into the bank. That is your goal, and then you can begin saving the rest in a brokerage portfolio. When you work with our financial advisors, we will select a conservative portfolio because we understand that even though you invest this money, it is still part of your emergency reserve. The money is doing some work for you, but it is improbable that you will lose it. 

When you have twelve months of an emergency reserve split between a savings account and a conservative brokerage portfolio, you and your financial advisor will likely begin investing more aggressively. 

Worth Advisors, LLC, Exists to Serve You
We will meet you where you are. If you are the type of person described in the first section, we can guide you toward a better financial future. Investing is for everyone. This is more than a slogan or tagline; it is who we are. Our advisors can assist you with cash flow planning and will create a customized investment plan based on your needs and objectives. Contact Worth Advisors, LLC, and set up a consultation with us today.