What should one focus on before attempting to invest?

Focusing on building an emergency fund before attempting to invest is essential for several reasons. An emergency fund serves as a financial safety net that helps cover unforeseen expenses, such as medical emergencies, car repairs, or job loss. By having this fund in place, individuals can avoid dipping into their investments or relying on credit cards to manage unexpected costs, which can lead to debt.

When someone invests without having an emergency fund, they expose themselves to potential financial stress and instability. If an emergency arises, they may be forced to sell investments at an inopportune time—potentially at a loss—just to meet immediate cash needs.

In contrast, having a substantial emergency fund provides peace of mind, allowing individuals to take a more long-term approach to investing. They won't be swayed by short-term market fluctuations because they know they have the financial security to handle emergencies. This foundational step sets up a more stable financial situation, enabling better investment decisions in the future.