Investing without preparation can result in more cons than pros.
Establish non-negotiable items before starting your investment journey.
Ensure you have a clear plan and understanding of your financial goals first.
Investing
Ready, Set, Start Investing!
Ready, Set, Start Investing!
Ready, Set, Start Investing!
Zoe Team
6 min read
Frequently Asked Questions
Frequently Asked Questions
What should I do before I start investing?
You should establish a firm financial foundation, identify your non-negotiable goals, and create a clear investment plan.
Are there downsides to investing early?
Yes, if you aren’t ready or lack a proper plan, investing can carry unnecessary risks and potential losses.
How do I know if I am ready to invest?
Assess if you have an emergency fund, stable income, and a long-term goal that aligns with your financial capabilities.
Investing when you’re not ready could have more cons than pros. Here are a couple of non-negotiable items and steps you should consider if you’re not sure you’re ready to start investing.
Are you a high earner looking for a thoughtful way to grow your wealth? You’ve likely already dipped your toes into the investing waters, but there is plenty to keep in mind as a do-it-yourself investor looking to continue to protect your future.
Nowadays, the barrier to entering the investing world has virtually disappeared. It’s frictionless, convenient, and easy! The investment options available to you are endless, and odds are, there’s something out there for you. But before you decide to make the jump (or opt to “buy the dip”) into the investing world, a few prerequisites will help set you up for success. From understanding how your investment strategy fits into your financial plan to evaluating the risks associated with investing, there is plenty to consider.
Investing when you’re not ready can have more cons than pros. Here are a couple of non-negotiable items and steps you should consider if you’re unsure.
Non-Negotiables Before You Start Investing
We like to think of investing in three stages: Ready, Set, and Invest. We’ll walk you through the non-negotiables for each step.
Ready
The “Ready” stage will ensure you have the prerequisites in place to start investing.
Are you prepared for the unexpected?
Before you start investing, you need to have your emergency fund set up. An emergency fund is a pool of money that you will drain first if something unexpected happens (loss of income, medical bills, etc.). Your emergency fund should be:
Easily accessible
Not in a retirement account (meaning it’s not subject to taxes upon withdrawal)
In cash (not subject to market fluctuations)
Typically, an emergency fund should equal three to six months of expenses. So, for example, if your monthly expenses are $5,000, you should be holding $15,000-$30,000 in cash.
Having an emergency fund set up will give you peace of mind that if something unexpected happens, you’re covered. Most importantly, you won’t have to dip into your investments designed for longer-term goals.
What’s your next big purchase?
Before putting your money into investing, think about your current goals and their time frames. For example, are you planning to buy a home? Or take a much-needed vacation? If you have a major expense coming up in the near future, the money needs to be set aside with your emergency fund.
Investments tend to move with the stock market, which has ups and downs, and you need to be able to keep your money invested for the long haul, including through market downturns. If you’re planning on using the money within five years, you shouldn’t invest it in the market.
Are you adding to your nest egg?
Saving is a component that should be present in your everyday life. Consider your cash flow. What money is coming in versus what is going out every month? Are you saving at the end of each month? To be clear, this does not mean saving today and spending it a few weeks later. Saving is not needing the money in the foreseeable future. If you consistently save each month, even if it seems like a small amount, you might be ready to start investing.
The snowball effect of saving and investing may surprise you!
Set
Now the fun part. If you’ve checked all of the above, you’re ready for the next stage: figuring out the how.
DIY or Outsource
Whether you’re just starting to invest or have been investing for a while, the ongoing decision is: who is managing the investments. There are three considerations when making this decision:
Time: Investing is not entirely a ‘set it and forget it’ endeavor. There is a time commitment for monitoring the investments for risk, quality, diversity, and performance, to name a few. The amount of time needed will vary depending on your goals. While this may not be a 40-hour-per-week commitment, nor should you be glued to your phone checking volatility’s impact on your accounts, it should never be a 5 min per week commitment.
Assessing the time commitment required for your specific portfolio is the first step to determining if you should manage your investments or outsource.
Knowledge: There are millions of articles related to investing. But, again, depending on your goals, you probably don’t need a Ph.D. to invest money appropriately. With all the information available, there is a lot of potential for rabbit trails during research.
Investing also takes practice, you might not do it right the first time or the 50th time, but there are plenty of learning opportunities that come along with investing. But, again, hindsight is 20/20.
Desire: Knowing that there is a time commitment necessary and ongoing education, desire is the last factor for true DIY investors. Typically the ‘desire’ stems from a cost or control perspective. However, if cost and control weren’t a factor, would you want to manage your own investments?
Some people genuinely enjoy this part of their financial life and should lean into what brings joy! Finding a trusted financial advisor to steward your investments is the best next step for those who would instead focus their time and energy on other expertise.
Invest: Now get the ball rolling
At this point, if you’ve checked off the pre-requisites and figured out how you’re going to manage your investments: You’re ready to start investing!
Let’s say you’ve decided to tap into a professional to handle the implementation; in this case, be sure to pick someone who understands your situation and goals and could invest better than you could do so yourself.
Your financial situation, time frame, risk tolerance, and goals are critical factors for determining an investment strategy. These need to be discussed whether you are building your investment strategy on your own or if you hire a financial advisor to manage your assets for you.
You’re Ready to Start Investing!
When done thoughtfully and strategically, investing can help you reach your goals. However, it’s like driving without a map without an end goal in sight. Investing without direction or goals could lead you to take on unnecessary risks or feel outright terrified during market fluctuations.
If done right, investing can be an exciting way to build your wealth and work towards your goals. But don’t allow the excitement to overshadow all the other necessities.
While building an emergency fund, identifying goals, and reviewing cash flow may not seem exhilarating, they are crucial in setting up for success.
Deciding that you are ready to invest is just the start!
Investing when you’re not ready could have more cons than pros. Here are a couple of non-negotiable items and steps you should consider if you’re not sure you’re ready to start investing.
Are you a high earner looking for a thoughtful way to grow your wealth? You’ve likely already dipped your toes into the investing waters, but there is plenty to keep in mind as a do-it-yourself investor looking to continue to protect your future.
Nowadays, the barrier to entering the investing world has virtually disappeared. It’s frictionless, convenient, and easy! The investment options available to you are endless, and odds are, there’s something out there for you. But before you decide to make the jump (or opt to “buy the dip”) into the investing world, a few prerequisites will help set you up for success. From understanding how your investment strategy fits into your financial plan to evaluating the risks associated with investing, there is plenty to consider.
Investing when you’re not ready can have more cons than pros. Here are a couple of non-negotiable items and steps you should consider if you’re unsure.
Non-Negotiables Before You Start Investing
We like to think of investing in three stages: Ready, Set, and Invest. We’ll walk you through the non-negotiables for each step.
Ready
The “Ready” stage will ensure you have the prerequisites in place to start investing.
Are you prepared for the unexpected?
Before you start investing, you need to have your emergency fund set up. An emergency fund is a pool of money that you will drain first if something unexpected happens (loss of income, medical bills, etc.). Your emergency fund should be:
Easily accessible
Not in a retirement account (meaning it’s not subject to taxes upon withdrawal)
In cash (not subject to market fluctuations)
Typically, an emergency fund should equal three to six months of expenses. So, for example, if your monthly expenses are $5,000, you should be holding $15,000-$30,000 in cash.
Having an emergency fund set up will give you peace of mind that if something unexpected happens, you’re covered. Most importantly, you won’t have to dip into your investments designed for longer-term goals.
What’s your next big purchase?
Before putting your money into investing, think about your current goals and their time frames. For example, are you planning to buy a home? Or take a much-needed vacation? If you have a major expense coming up in the near future, the money needs to be set aside with your emergency fund.
Investments tend to move with the stock market, which has ups and downs, and you need to be able to keep your money invested for the long haul, including through market downturns. If you’re planning on using the money within five years, you shouldn’t invest it in the market.
Are you adding to your nest egg?
Saving is a component that should be present in your everyday life. Consider your cash flow. What money is coming in versus what is going out every month? Are you saving at the end of each month? To be clear, this does not mean saving today and spending it a few weeks later. Saving is not needing the money in the foreseeable future. If you consistently save each month, even if it seems like a small amount, you might be ready to start investing.
The snowball effect of saving and investing may surprise you!
Set
Now the fun part. If you’ve checked all of the above, you’re ready for the next stage: figuring out the how.
DIY or Outsource
Whether you’re just starting to invest or have been investing for a while, the ongoing decision is: who is managing the investments. There are three considerations when making this decision:
Time: Investing is not entirely a ‘set it and forget it’ endeavor. There is a time commitment for monitoring the investments for risk, quality, diversity, and performance, to name a few. The amount of time needed will vary depending on your goals. While this may not be a 40-hour-per-week commitment, nor should you be glued to your phone checking volatility’s impact on your accounts, it should never be a 5 min per week commitment.
Assessing the time commitment required for your specific portfolio is the first step to determining if you should manage your investments or outsource.
Knowledge: There are millions of articles related to investing. But, again, depending on your goals, you probably don’t need a Ph.D. to invest money appropriately. With all the information available, there is a lot of potential for rabbit trails during research.
Investing also takes practice, you might not do it right the first time or the 50th time, but there are plenty of learning opportunities that come along with investing. But, again, hindsight is 20/20.
Desire: Knowing that there is a time commitment necessary and ongoing education, desire is the last factor for true DIY investors. Typically the ‘desire’ stems from a cost or control perspective. However, if cost and control weren’t a factor, would you want to manage your own investments?
Some people genuinely enjoy this part of their financial life and should lean into what brings joy! Finding a trusted financial advisor to steward your investments is the best next step for those who would instead focus their time and energy on other expertise.
Invest: Now get the ball rolling
At this point, if you’ve checked off the pre-requisites and figured out how you’re going to manage your investments: You’re ready to start investing!
Let’s say you’ve decided to tap into a professional to handle the implementation; in this case, be sure to pick someone who understands your situation and goals and could invest better than you could do so yourself.
Your financial situation, time frame, risk tolerance, and goals are critical factors for determining an investment strategy. These need to be discussed whether you are building your investment strategy on your own or if you hire a financial advisor to manage your assets for you.
You’re Ready to Start Investing!
When done thoughtfully and strategically, investing can help you reach your goals. However, it’s like driving without a map without an end goal in sight. Investing without direction or goals could lead you to take on unnecessary risks or feel outright terrified during market fluctuations.
If done right, investing can be an exciting way to build your wealth and work towards your goals. But don’t allow the excitement to overshadow all the other necessities.
While building an emergency fund, identifying goals, and reviewing cash flow may not seem exhilarating, they are crucial in setting up for success.
Deciding that you are ready to invest is just the start!
Disclosures: Zoe Financial, Inc. ("Zoe Financial") is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Zoe Financial provides investment advisory services and access to independent registered investment advisers through its platform. The information provided by Zoe Financial is for educational and informational purposes only and should not be construed as personalized investment advice or as an offer to buy or sell any security. All investments involve risk, including possible loss of principal. Past performance is not indicative of future results. Clients should consult with their own financial, tax, or legal professionals before making any investment decisions. The material presented by Zoe Financial is for informational purposes only and is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy, or investment product. Material presented has been gathered from sources believed to be reliable, however Adviser cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Past performance is no guarantee of future results. Zoe Financial does not provide legal or tax advice, and nothing contained in these materials should be taken as legal or tax advice. SEC Registration does not constitute an endorsement of Zoe Financial by the SEC nor does it indicate that Zoe Financial has attained a particular level of skill or ability. The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be appropriate for all clients. Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance. Lower expenses do not guarantee better investment performance. Certain information contained herein may constitute forward-looking statements. Due to various risks and uncertainties, actual events, results or the performance of a fund may differ materially from those reflected or contemplated in such forward-looking statements.
Disclosure: This page is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional accounting, tax, legal or financial advisors. The observations of industry trends should not be read as recommendations for stocks or sectors.
Investment advisory services are provided by Zoe Financial, Inc. (Zoe Financial), an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Learn more about Zoe Financial on the SEC’s Investment Adviser Public Disclosure website. Brokerage services are provided by Zoe Securities LLC and Apex Clearing Corporation, members of the Financial Industry Regulatory Authority Inc. (FINRA) and Securities Investor Protection Corporation (SIPC). Learn more about Zoe Securities and Apex on FINRA’s BrokerCheck website.
The information in the visuals above is for illustrative purposes only and does not represent an actual user's account, balance, or return. Zoe Financial does not provide tax or legal advice.
Explore the Zoe Wealth Platform with AI
Some of this content may have been generated with the assistance of AI. Please review and sense-check all outputs, as AI tools can occasionally produce incomplete or inaccurate information.
In certain situations, you may be required to disclose that the content was “generated by AI.” Please confirm any specific disclosure or labelling requirements with Compliance.
(646) 680-9244
support@zoefin.com
666 Third Ave, 6th Floor
New York, NY, 10017
Copyright © 2026 Zoe Financial, Inc. | All rights reserved
Find an Advisor
Retirement Planning
Disclosure: This page is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional accounting, tax, legal or financial advisors. The observations of industry trends should not be read as recommendations for stocks or sectors.
Investment advisory services are provided by Zoe Financial, Inc. (Zoe Financial), an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Learn more about Zoe Financial on the SEC’s Investment Adviser Public Disclosure website. Brokerage services are provided by Zoe Securities LLC and Apex Clearing Corporation, members of the Financial Industry Regulatory Authority Inc. (FINRA) and Securities Investor Protection Corporation (SIPC). Learn more about Zoe Securities and Apex on FINRA’s BrokerCheck website.
The information in the visuals above is for illustrative purposes only and does not represent an actual user's account, balance, or return. Zoe Financial does not provide tax or legal advice.
Explore the Zoe Wealth Platform with AI
Some of this content may have been generated with the assistance of AI. Please review and sense-check all outputs, as AI tools can occasionally produce incomplete or inaccurate information.
In certain situations, you may be required to disclose that the content was “generated by AI.” Please confirm any specific disclosure or labelling requirements with Compliance.
(646) 680-9244
support@zoefin.com
666 Third Ave, 6th Floor
New York, NY, 10017
Copyright © 2026 Zoe Financial, Inc. | All rights reserved
Find an Advisor
Retirement Planning
Disclosure: This page is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional accounting, tax, legal or financial advisors. The observations of industry trends should not be read as recommendations for stocks or sectors.
Investment advisory services are provided by Zoe Financial, Inc. (Zoe Financial), an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Learn more about Zoe Financial on the SEC’s Investment Adviser Public Disclosure website. Brokerage services are provided by Zoe Securities LLC and Apex Clearing Corporation, members of the Financial Industry Regulatory Authority Inc. (FINRA) and Securities Investor Protection Corporation (SIPC). Learn more about Zoe Securities and Apex on FINRA’s BrokerCheck website.
The information in the visuals above is for illustrative purposes only and does not represent an actual user's account, balance, or return. Zoe Financial does not provide tax or legal advice.
Explore the Zoe Wealth Platform with AI
Some of this content may have been generated with the assistance of AI. Please review and sense-check all outputs, as AI tools can occasionally produce incomplete or inaccurate information.
In certain situations, you may be required to disclose that the content was “generated by AI.” Please confirm any specific disclosure or labelling requirements with Compliance.
(646) 680-9244
support@zoefin.com
666 Third Ave, 6th Floor
New York, NY, 10017
Copyright © 2025 Zoe Financial, Inc. | All rights reserved