Investments is an important part of building wealth and it should not be limited to those who have large amounts of excess funds to invest. Before you start investing, do ensure that your debts are kept under control, by sticking successfully to your financial budget and developing a regular savings habit.

The first step to investing is to specify your Investments goal. Start by writing down your goal in terms of: 1) the purpose that you wish to fulfill using the Investments, 2) the amount of expected returns from the Investments, and 3) the planned number of years to reach that goal.

Next, determine the amount of money you are willing to invest for both short-term and long-term Investments.

After that, decide whether you wish to invest directly as an individual or whether you wish to entrust a financial institution or professional to invest on your behalf.

Finally, seek professional advice about the risks involved and the suitability of various Investments options to achieve your desired goal.

Most financial advisors recommend spreading your money over different types of Investments to reduce risk, so that when one type of Investments is not doing well, it is likely that another type will be doing well to compensate for the loss. Your asset allocation should be tailored to your risk tolerance and the number of years you wish to invest in a particular instrument, before you'll need to withdraw your money.

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