Should I put my money in to...

In response to the overwhelming questions I've been asked in recent weeks in regards to the various social media "investments," I wanted to share a few things to consider before someone should decide to put their money into one of these "systems." 

I will not discuss the details about the actual "opportunities" floating around on social media and personal networks (i.e. You give a certain amount of money, with the promise to receive an amount higher than that at a later date or even the newly popular buying of cryptocurrency). I will not discuss the legitimacy or legality of these, nor will I try to convince anyone to put their money in to it or NOT put their money in to it. 

Here are 8 things to consider BEFORE you buy-in to one of these systems: 

1. Am I taking money away from being able to make on-time payments for my important living expenses such as rent/mortgage, utilities, transportation, food, etc. in order to put money in to one of these systems? 
2. Do I have an Emergency Savings Fund established for myself (and immediate family)? [$500-$1000 minimum] 
3. What is my investment risk tolerance? Am I in the financial position to be risky with my monies or should I be more conservative in the way I invest? 
4. What does my current investment portfolio or long term financial plan look like or does it even exist?
5. What kind of financial protection do I have in place for myself and those who depend on my income for survival? i.e. Life Insurance products 
6. Am I willing to risk personal relationships in the event the system does not work out in a friend or family member's favor that I introduced to system? 
7. What is my plan in the event I do increase my cash flow from the system? Will I use it for important obligations such as bills, debt or savings goals? Or do I plan on just blowing through the money since I wasn't really expecting the "windfall" in the first place? 
8. What is my plan in the event I do NOT get the monies I was promised? Will I still be able to pay my living expenses and live comfortably? 

Take from this what you will, I have experienced both success and failure with a variety of different investment opportunities, however I always made sure I was in the right financial position to make the initial investment decision in the first place. 

For more tips, advice and information about strengthening your finances, subscribe to the Money Mana'o Blog for updates or visit the blog archives for past discussion topics.

Also, feel free to comment. Please be respectful in your comments as this is meant to be a safe space for people to share experiences and questions about their path to financial prosperity. 

Lastly, share this blog to your family and friends who might benefit from the information provided.