People are very interested in investing. This is good. If you have a small savings, you should invest more than you spend.

But beware of the word "invest" in the word investment. You have to invest money. For the long term. You may not be able to recover the money immediately when you want to recover it. If you want to recover immediately, you may lose out.

For example, let's say you invest in real estate. I bought a plot of land at a reasonable price of 300 lakhs. If you sell it now, you will get 300 lakhs. But next year, the farm price will fall to 250 lakhs. Due to rising farm prices, it will be around 350 lakhs. There is no certainty. But what is certain is that in the next 20 years, this farm will be worth many times more than 300 lakhs + bank interest. There are a few exceptions. It is a viable investment that will pay off in the long run. In the meantime, it's better to have a monthly income from renting a farm.

Good in the long run, but not in the short term. You can buy it for 300 lakhs and get 350 lakhs. If you get only 250 lakhs, you will get it. If you want to sell fast because you have a stomach ache, you have to sell at a lower price.

In other words, investing is more about the long term. In the next three or four or five years, you will be able to get your money back. It should not be listed on the stock market.

Real Estate Stock market; In the stock market, there are immediate benefits. But the person who does this should not be called an investor. They should be called traders or speculators. Traders and speculators are keeping a close eye on the market and working to reduce losses and increase profits. It's more money than money. They are busy. There is a lot of pressure. If you move the box incorrectly, it will be replaced. We can not be complacent like investors.

The money invested must be long-term. For the long term. You do not want to be frustrated if you cannot get the right pitch so invest in a good capo.

So what should you do before investing?


(1) Pay the debt

High interest rates should be paid off first. Paying off high-interest debt (plus interest) is better than investing. The investment is not guaranteed to be 10% profit per month. If you have to pay 10 kyats a month because you are in debt, paying off that debt first is like making 10% profit per month. You can close the 10% cash flow per month.


(2) Save for an emergency fund

The next step is to calculate your monthly expenses and save between 3 and 6 months as an emergency fund. For example, if the monthly expenditure is 100,000, it should be between 300,000 and 600,000 as an emergency fund. Cash should be kept in the bank.

Emergency funds should be used only for emergencies. For unexpected misfortunes. You lost your job. Sudden hospitalization For accidents. Instead of trying to recover, they wallow in their sadness and thus, experience more failure. Even if you have to use the emergency fund for some unexpected reason, you will need to replenish it as soon as it is convenient.


(3) Save for the short term

Once your emergency fund is full, save for short-term expenses. For example, to get married; To travel To give birth to a child When a children's school opens, to buy; To buy a phone and so on. If you do not save, you can only borrow when you need to. Debt settlement can make the difference between success and failure.

It is suggested that you save more money for a long-term investment.