Investments can be a source of great potential earnings. The two most common reasons that a person does not invest are either they do not have money or they do not know how to get started. These are some ways to prepare for investing and some things to consider before investing.Saving Money to Invest * Lower debt Everyone has debt and most will always have some debt, however if you have outstanding credit card debt, then this may not be a good time to invest. Credit card debt can be consuming and best way to become financially stable and to create and atmosphere in which you are able to save money, you must pay off high interest rate credit cards. If you have more than two credit cards or your cards have reached maximum limit and you are making minimum payments then you should invest all extra money into paying off these debts before investing in other ways.
* Create Emergency Funds Everyone should have an emergency fund for unexpected debts or accidents. Financial advisors will recommend that you have at least three months of funds or 15% of annual income to fall back on in event that you lose your job or incur unexpected expenses.
* Maximize Employment Benefits If your employer offers a 401 K plan, be sure that you are taking full advantage of this plan. Strive to put in maximum amount allowed each month. You may not think of this as an "investment" however, 401 K and similar plans are some of best investments a person can make for their future.