Six key questions to ask before investing if you want to get rich

Martin Lewis gives advice on investing inheritance

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Chantelle Arneaud, strategic director at investment platform Envestors, said it can be exciting investing for the first time. However she urged people to slow down, take a deep breath and consider six key things before taking the plunge.

First of all, she said all potential investors should consider whether they are choosing a company to invest in with their head or their heart.

She explained that finding the right investment can be an emotional business so it’s important to not let your excitement get the better of you.

When it comes to investing, it’s important to let your head rule your heart.

That was just one of her top tips for first time investors, the other five are:

READ MORE:  The one tip from Warren Buffet that could make you rich

Woman investing from her tablet.

Woman investing from her tablet. (Image: Getty )

Is the company involved in any ongoing legal disputes?

She said there’s no sure-fire way of knowing which companies to back, but asking yourself these six questions before making a decision will put you in a much stronger position.

That said, it won’t eliminate all risks.

Sometimes no matter how much research you do, the value of investments will go down.

Later life mortgages

Later life mortgages (Image: Getty )

How do I start investing?

Once you’ve done your research and considered your options, she said the next step is to start buying shares.

She advised choosing an independently recommended share dealing account and using a stocks and shares ISA.

This allows you to buy shares with a reliable platform in a tax-efficient way.

However, no matter how much research you do, the value of investments can go down as well as up, so it’s vital to have a solid plan and stick to it.

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Meanwhile, billionaire Warren Buffett has shared his top tip for investing which is to start young.

Buffett bought his first stock at 11-years-old and is now estimated to be worth £73billion.

If you haven’t started investing yet it’s never too late.

The Berkshire Hathaway CEO recommends backing the housing market or businesses that you buy once and don’t have to keep investing in.

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