Investing Essentials: The Top 10 Must-Haves for Irish Investors Before You Dive In

So, you’re determined to dip your toes into the world of investing. Perhaps it’s that shiny new pension plan, or perhaps you're eyeing a bit of extra money to circulate through shares, get those kids through college or retire on your timeline. No matter your objective, there are some necessities each Irish investor must have firmly in place before that first investment takes place. Think of it as getting your money house is in order - because, let’s face it, diving into investing without preparation is like attempting to navigate the Wild Atlantic Way without a map. Exciting, but pricey and way more time consuming than you’d like.

Here’s my list of the biggest 10 Must-Haves you need to have sorted before you begin investing in Ireland’s bustling market. Grab a cuppa; this might just save you from lots of headaches down the motorway of money freedom.

Photo by Jeremy Bishop on Unsplash

1. A Clear Money Game Plan (And a Backup Plan)

First up, what’s your why? Are you saving for a home, funding your kids’ school, planning for retirement, or just trying to develop your wealth? Having a crystal-clear aim guides your investment style and choice. It’s also clever to have a backup plan - life’s unpredictable, and typically plans want to change sooner than a Dublin bus.

2. An Emergency Fund (Your Monetary Safety Net)

When it comes to taking the fear out of investing you need to de-risk the system. Do not leave your hard-earned money to chance, ensure you’ve got an emergency fund in place about three to six months of living expenses. This isn’t simply good advice; it’s essential. Life throws curveballs - illness, job loss, unexpected bills - and you don’t want to be pressured to sell investments at a loss because you’re caught brief.

3. Debt Management (Preferably, No Bad Debts)

High-interest money owed, especially credit cards or private loans, can erode your financial foundation. Prioritise paying these off before you begin investing. Bear in mind, the curiosity on unhealthy money owed often outweighs potential investment positive aspects, so tackling them first is a smart move.

4. Knowledge of Your Finances (Know Thy Money)

Understanding your earnings, expenditure, belongings, and liabilities provides you a real image of what you can afford to take a position. It’s about being trustworthy with yourself - no point dreaming of a lavish way of life if your funds are still in a tangle. Get a grip on your numbers and set realistic expectations.

5. Saving Behaviour

Building wealth isn’t just about investing; it’s also about disciplined saving. Establish a system that prioritises constant financial savings. This behaviour fuels your investment journey and ensures you’re not relying on windfalls or credit.

6. Know Your Risk Tolerance

Are you comfy with ups and downs, or do sudden dips ship you right into a tailspin? Understanding your risk tolerance helps you choose appropriate investments - whether it's the stability of Irish government bonds or the volatility of tech stocks. Remember, all investments have risk, knowing your tolerance of each risk will help you make the right decisions for you.

7. Understanding of Fund & Costs

Familiarise yourself with the primary kinds of investments here in Ireland - pensions, shares, ETFs, property, and so on. Concentrate on their costs. Hidden charges can eat into your returns faster than you can say “Where’s my money gone!” Knowledge is power, especially in when it comes to fees and charges.

8. Diversification in Investing

Don’t put all your eggs in a single basket - sounds cliché, but it works. Spreading investments across a wide range of assets and sectors reduces risk and helps clean out the bumps. A well-diversified portfolio is your finest pal in maintaining steady growth.

9. A Long-term Mindset

Investing isn’t a get-rich-quick scheme - think of it more like planting a tree that grows over years and decades. Consistency and self-discipline are key. Market dips could take a swipe at your resolve, however history reveals that staying the course pays off.

10. Knowledge is Power

While you can go it alone, finding the right advice can make a seismic difference - especially one who understands the Irish market and your personal circumstances. Just bear in mind, not all recommendations are created equal, so choose somebody respected and clear.

Final Thoughts

Getting these essentials right early before jumping into investing isn’t about dampening your enthusiasm; it’s about setting yourself up for achievement. When your money house is in order, you are better positioned to navigate Ireland’s distinctive (albeit quirky) financial landscape.

Investing is a marathon, not a sprint. Take the time now to lay a solid groundwork, and you will thank yourself when your investments start working for you instead of the other way round.

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Kel Galavan

Kel Galavan is a leading Irish Money Expert and author of Mindful Money: More Money, More Freedom, More Happiness, with 20 years of investing experience. Having personally navigated her way from 6-figures of debt to a 7-figure net worth, she came to public attention after completing the No Spend Year™. Kel's mission is to instil confidence and control around money. Kel is dedicated to empowering others to take control of their financial futures.

Kel created the first and only in Ireland flagship course, Rise Money™ Become a Confident Investor, specifically designed for Irish people who want to build rock solid personal finances, learn to invest for themselves and navigate the Irish tax system. She demystifies investing, cuts through financial jargon, and provides a practical, step-by-step roadmap to investing success in Ireland.

Disclaimer: The information on this blog is for general knowledge and discussion only, and does not constitute financial advice. You should seek independent professional advice before making any investment decisions. Investing carries risk. Links to third-party sites/products are not endorsements.