3. Master the Art of Budgeting

Budgeting is a crucial skill for managing your finances and freeing up money to invest. A well-crafted budget provides a clear picture of your income and expenses, helping you identify areas where you can cut back and increase savings. By including investment contributions as a fixed line item in your budget, you ensure that investing becomes a non-negotiable part of your financial plan.

4. Establish an Emergency Fund

Before you dive into the world of investing, it’s important to set up an emergency fund. This is a reserve of cash that can cover 3-6 months’ worth of living expenses in case of unexpected events like job loss, car repairs, or medical emergencies. An emergency fund provides a financial safety net, ensuring that you don’t need to withdraw from your investments when unexpected expenses arise.