4 signs you and your budget are ready to invest

If you clicked on this story, you are probably ready to put some money away for future goals. Should investing be part of your reality? How will you know you are ready to start investing? Here are signs to help you know.

1. A well-stocked emergency fund
Life throws curveballs. It is good to have an emergency fund with at least three months’ worth of living expenses to give yourself the stability that investing can require. Your emergency fund will give you a buffer if anything unexpected happens, so you would not have to tap into investments slated for other purposes. 

2. Extra money every month
Your emergency fund is looking good. You pay all the bills and any high-interest debt. You have enough to cover groceries and other expenses. Still some left over? It does not have to be a lot. Investing is all about starting small and growing over time. The key is to stick with it so the money invested can work for you.

3. Long-term goals
Investing is a journey that goes better if you know where you are headed. That is where long-term goals come in. Goals give you direction and focus for your investing. Maybe your goal is a comfortable retirement. Maybe it is a great college for your kids. Be detailed and realistic about what you want to accomplish.

4. Access to a retirement plan
If you are contributing to a private retirement scheme (PRS), you may have already taken a big step toward investing. PRS aims to help individuals accumulate savings for retirement, on top of their mandatory retirement savings. Simply put, the more savings you set aside, the more comfortable your retirement will be.