Thinking about investing? Please, don’t just follow what everyone else is doing. Seriously. I can’t stress this enough. Too often, people ask, “Why did you invest in X, Y, or Z?” and the answer is always, “Oh, my friend said it’s good,” or “Some YouTuber recommended it.” 🚨 That’s extremely risky.
Here’s the problem: you invest based on someone else’s advice, you lose money, and then… who do you blame? Them? Or yourself? The truth is, it’s your responsibility to learn and understand before you invest.
So, before you even think about putting your money anywhere, there are three crucial steps you must follow:
Step 1: Kill Bad Debt First 💳
For me, “bad debt” is credit cards and personal loans. Why?
Credit cards: interest rates can hit 18% per year. Imagine investing while paying 18% interest—you’d need a miraculous 18% return every year just to break even.
Personal loans: if you borrowed cash for a wedding, renovation, or travel, there’s usually no asset backing it. Meaning, if you run into emergencies, you’ve got nothing to sell to get cash fast.
So, before investing, pay off these debts first. Trust me, it saves you stress and money.
Step 2: Build an Emergency Fund 💰
Next, create a safety net. Aim for at least 6 months’ worth of expenses.
For example, if your monthly salary is $3,000, your emergency fund should be around $18,000. Not there yet? Focus on filling that first.
Where to keep it? Not under the mattress! Opt for low-risk investment vehicles like:
ASB (Amanah Saham Bumiputera)
Tabung Haji
These provide steady annual returns while keeping your money accessible for emergencies.
If you have extra funds and can’t wait, split it:
50% goes to your emergency fund
50% goes to investments you understand and trust
⚠️ Important: don’t touch your emergency fund unless it’s a real emergency. Otherwise, it defeats the purpose.
Step 3: Invest Smartly 🎯
Now, the fun part—but here’s the catch: invest in knowledge first.
Before touching any stocks, ETFs, crypto, or unit trusts, learn the ins and outs. Read books, watch tutorials, take courses. Why? Because ignorance is expensive.
There are two types of investments to understand:
Active Investments – You manage them, like stocks or crypto. Your gains come from capital appreciation (buy low, sell high).
Passive Investments – Someone else manages it for you, like unit trusts. You earn through capital growth + dividends.
A balanced portfolio often includes both active and passive investments. And remember: don’t put all your eggs in one basket. Spread your investments across different instruments to reduce risk.
💡 Pro Tip: If you have $1,000 extra per month, follow these steps first:
Pay off bad debt
Build your emergency fund
Invest in knowledge before investing your money
If you’re serious about investing in ETFs, here’s a safe and user-friendly platform you can start with: moomoo. It’s easy, beginner-friendly, and perfect for putting your knowledge into action.
Take control of your money today. Invest smart, invest safely, and grow your wealth the right way! 🚀
