8 Investment Questions You Must Ask Before You Start

Okay, so you’ve been able to increase some extra cash flow from our cash flow management strategies and now you have have some investment questions. Good for you!! Investing is that little secret the wealthy won’t come clean about and it’s important that you ask the right questions so you understand exactly what you are doing.

Putting your hard earned money into a savings account like we’ve all been taught is not going to make you rich, but investing in the right products most certainly can.

What do you do next..?

It’s time to investigate. Get serious and do your research before you start opening those investment accounts.

It’s crucial to research your investments before you commit your  dollars. When the economy is booming, you might find it easy to pick profitable investments, but without adequate research, you’re likely to struggle during more challenging economic circumstances.

Asking the most important money saving questions can help you quickly determine if a potential investment is worth jumping or something that can cause you to potentially lose money.

Here are a few money saving questions you want to ask regarding any investment opportunity:

Investment Questions #1 | How much risk are you willing to accept?

• The greater the risk, the greater the potential profits. Anytime anyone has asked me how much money they should invest, I ALWAYS say, never invest more than you are willing to lose. But you also want to ask yourself how far into the future are you planning to invest? Do you need the money back from your investment at the end of the year, or in 25 years? What will the money ultimately be used for? Having an investment strategy is essential before you make a move.

Investment Questions #2 |How does the company make money?

• By understanding this simple fact, you’re in a much better position to make intelligent decisions regarding the viability and outlook of the firm.

• It’s challenging to invest in a company you don’t understand. This is the first step to gaining that understanding.

• One of the things I find helpful is whether or not I “believe” in what the company is doing. If I have a bit of passion about what their mission is, investing in it feels easy. But if it seems like it’s just a bunch of hype than I wont think twice about NOT going to get involved.

Investment Questions #3 | How well is the company doing?

• Have the earnings been increasing each year for at least the last few years? What is the debt-to-equity ratio? Price-to-earnings ratio? Do the necessary due diligence to determine the financial stability and profitability of the company.

• Beware of buying into any hype that has driven a stock to an unjustifiably high price. The market is easily manipulated in this way.

Investment Questions #4 | What does the future look like?

• Accurately determining the future prospects for the company might be the most important issue. Will customers continue to need the company’s products well into the future? Is the company in a position to thrive for at least the next few years?

• All companies must eventually grow, but growth also provides opportunities for mistakes to occur. The ability to be profitable while maintaining the status quo is attractive.

Investment Questions #5 | Who is running the company?

• Know who you are giving your money to. Very few private investors have the ability to meet individually with the executive team of a corporation. However, there are ways to investigate the CEO and his team. It’s easy to find the names of the relevant people. A quick google search online will provide the details of their pasts.

• Some of the things you’ll want to focus on: How long have they been with the company? How long did they stay at their previous positions? How successful have they been in the past? What happened to the corresponding stock prices during their time there?

Investment Questions #6 | Who are the primary competitors?

• Competition is awesome and any profitable market niche will have competition.

• You’re job is to find out how does your potential investment stack up among the competition? Which is best positioned for the future? Which company has the best management team? Which company has been most successful over the last several years?

Investment Questions #7 | Does this investment provide a level of diversification from your current investments?

• Financial experts tend to support the idea of diversification to protect against large losses. Consider the amount of diversification you need and determine if this investment helps to achieve that goal. In other words…

Don’t put all your eggs in one basket! =)

Investment Questions #8 | Could the money be better spent?

• Here comes the “taking responsibility tip: Investing in stocks, bonds, bitcoin or anything else is a questionable strategy IF you have credit card debt at 19% interest hanging over your head. Think about how the money can best be used before making a traditional investment.

Paying off debt should be first and foremost in increasing your cash flow before jumping into investing…

…Just sayin’. Remember, debt especially revolving debt like credit cards is NOT your friend and will rob you of your wealth.

So there it is…

Not too hard, right?

Collecting a few facts will save you a lot of money in the short and long run. Investing is not something we are taught is necessary to wealth in our culture. Putting money into a savings account that offers less than one percent will do nothing to make you money!

In fact, when you put money into a traditional savings account it is being used by the bank as an asset to make THEM billionaires and to create more debt for other people!

They are taking your money and investing it and getting huge returns yet only giving you the crumbs.

It’s time we start learning how to grow our money like the rich…When you learn how to invest properly, you will be able to create true passive, multiple streams of income into your retirement years

Treat investing like a part-time job, rather than a form of gambling. Buying stocks or bonds shouldn’t be like purchasing a lottery ticket. For your best results, know the important facts before choosing any investment.

P.S  If you're feeling stuck in your business even after you did everything your upline told you to do... Take a minute to Check out my 3 Step Marketing Blueprint to learn how to start marketing your business without feeling like a pushy salesman. CLICK HERE TO WATCH

"As an introvert entrepreneur I don't particularly enjoy chasing strangers online, networking events, talking about myself on social media or anything else you can think of that involves selling! But, because I learned how to market online the right way, I don't have to do those things."

↓Check Out More. Comment and Share↓