David John MarottaDavid John Marotta is the President of Marotta Wealth Management, a fee-only financial planning and asset management firm in Charlottesville, Virginia. He is an oft-quoted writer and speaker on financial matters and his weekly financial column can be found at www.eMarotta.com
Host: What should I consider before investing?
David Morotta: Before investing any money, you need to have a few things that are straight. First of all you need to have a budget and know that your cash flow is positive, so what comes in and what goes out, what comes in is greater than what goes out and you are putting money into your savings and investments.
Second, you need to make sure that you have put money a way, you have built up an emergency fund. So, if something happens and you lose your job or you need expenses or the car breaks, that you have an emergency fund that you can spend out of.
Then after those things are straight, then you can start investing and you should start investing for appreciation and diversifying for growth.