You should make investments only after you have sufficient liquidity and sufficient insurance to protect your existing assets.

Question

Quizplus · Accepted Answer

Having sufficient liquidity ensures you can cover short-term expenses and emergencies without having to liquidate investments at a potentially bad time. Adequate insurance protects your existing assets from unforeseen events, reducing the risk of financial loss. Both are foundational steps before taking on investment risks.

You Should Make Investments Only After You Have Sufficient Liquidity