Investing in index funds is a great way to generate passive income, especially if you are a beginner. There’s an old saying you’ll often come across, “Don’t put all your eggs in one basket”. That means if you invest all your money in one stock, you will significantly increase your investment risk.
Before we get started, let’s talk about the giant elephant in the room. That elephant is the misconception that investing is only for the wealthy and that it should be left to the professionals because it’s so difficult. That couldn’t be further from the truth, but I’ll be honest, I had that thought process for so many years. Or the thought that it’s something that I’ll do in my late 30s when I have enough money to invest because you need a minimum of like $10,000 to start.
Most if not all new investors are eager to grow their money, all in a quest hoping one day they would become richer than rich. Guess what? Without a doubt anyone can get rich by investing!
Ahhh, the age old question: Should you pay off debt or invest first? This is an often debated topic in the personal finance community and today, I’m going to unpack what I think you should consider when asking yourself this very question. Here are 6 things to check before you consider investing over paying off debt