1.设Target

Let's think about this: What are your goals as an investor?？What would you do with the money？Try to write it down and see what happens。

If you go further, you can try to estimate how much each goal might cost。How much money do you need to save to buy new kitchen utensils？How much down payment is needed to buy a new house？You may want to add a tentative date for each goal to make everything feel more real。

When creating a manifest, you may realize that not every goal is achievable and some trade-offs need to be made。It's normal not to be able to afford designer jeans and a new sofa and everyone has to make some tough choices。Sorting the list can help you decide what is more important。

This process can help you take a step back and look back at the beginning of your investment。

Why high-interest debt is toxic？The cost of credit or debt (called interest) can get out of control, which can make your financial situation worse than it was at the beginning。

For example, suppose you want to buy an iPhone SE that costs about $450。If you pay by cash or credit card (paid in full), the $450 is your entire fee, excluding taxes, shipping, and perhaps an ongoing data plan。

But let's say you didn't pay your credit card bill in full at maturity, paid the minimum payment, or a little more。In this case, the $450 fee may start to inflate。If you pay $50 a month and the credit card company charges 22% interest per year, it will take you 10 months to pay off your debt。At that time, you will pay $450 (the price of the new phone) plus $46 in interest.。Essentially, you pay about 10% more than the list price。

The bigger the debt, the worse the situation。

Why pay off high-interest debt before investing？Because it's hard to find an investment that can grow faster than your debt.。

High-interest debt is like improving your diet, essential to your overall health, but it can be hard to make changes。For many, it can feel overwhelming。

Still, paying off high-interest debt is probably the most important thing you can do right now to prepare to invest。

During the investment process, you should also have some cash injections on hand, such as an emergency fund。If your car breaks down, a new oven catches fire, or suffers serious damage, you will get the money。

What is an Emergency Fund?？For most people, this is an account with a large amount of money, perhaps enough to cover 3 to 6 months of rent and living expenses。Depending on your living situation and financial situation, you may start small and expand over time - or, if you are particularly risk averse, you may seek a larger emergency fund。You can also revisit whether you have adequate coverage, and between health, life and disability policies, you may need a plan that suits your situation。

Emergency funds and insurance policies can help you get out of trouble, they act as backup plans, and it's best to give yourself a buffer no matter what approach you take。