Decisions we make today, impact our tomorrow.
There is ALWAYS risk when investing (including term deposits), it is a matter of finding out what the risks are, and deciding if that level of risk is acceptable to you.
Knowing our risk-tolerance profile with regards our finances is very different to risk taking elsewhere. I know for myself I am perfectly happy to jump out of a plane to go tandem skydiving, but I am also personally a more conservative investor when compared to the masses.
- Do I know what investment risk is?
- Do I understand the level of risk I am taking currently?
- Am I better helping others take risk rather than taking it myself?
If you want to find out your financial/money RISK TOLERANCE you can find out here.
YES THE TEST IS FREE and with NO OBLIGATION
Finding out your risk tolerance will help you to know how to invest for your character, not your emotions on a given day. The test is pyschometric, meaning that it tests your traits (permanent) versus your disposition (emotions on the day). This is very important.
On the other hand the risk-tolerance is very different to your risk CAPACITY. Sometimes the most aggressive investors have the least capacity to invest due to their willingness to take a risk, but this is not always the case as sometimes the risk paid off.
The first step to investing is to SAVE. If you are not saving, why not? If you currently save nothing, have you ever tried setting up a bank account and having an automatic payment going in to it for $5 per week? This experiment I know will have you saving more, as you see your success it will spur you on to save more. In these days of internet banking it is easy to set up a new bank account and start saving.
Don’t put-off today those things that can change your tomorrow for the better.