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1- Set goals for your investments. What do you want to do with the money you make from your investments? Do you want to retire early? Do you want to buy a nice house? Do you want a boat?
2- Establish a timeline for your goals. How soon do you want to reach your financial goals? That will determine the type of investments you make.
3- Determine the level of liquidity you want. A "liquid" asset is defined as an asset that can be easily converted to cash. That way, you'll have quick access to the money if you need it in an emergency.
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