- KNOW THAT INVESTING INVOLVES DIFFERENT RISK LEVELS. The higher the interest the higher the risk. If the interest rate offered sounds too good to be true, it probably is.
- There is no one best investment for everyone. You have to understand your risk appetite (the level of risk you can and are willing to take) before you invest and know the purpose why you are investing, is it for the short term, medium term or long term).
- Do not attempt to borrow money or take out a loan for investment purposes. Money for investments should be any extra money you may have that you do not need to use in the short term.
- Make sure you fully understand the investment opportunity and the associated risk before deciding to make any investment (Risk = the chances of losing your money to an investment) Read our article on Investment Red Flags
To understand more about basic concepts on investments, attend Enrich’s Growing Your Money workshop