Your first step towards successful investment starts with taking stock of your finances. You should first know your income, expenses, liabilities and savings. Sure, you know all these things vaguely, but that is not enough. You should be absolutely clear about all these things.

Boosting your savings is key to create more money to invest. That is why you should closely examine your expenses, especially discretionary expenses, and figure out how you can cut down on them. Similarly, you should also closely examine your liabilities to figure out the cost involved in servicing them. For example, if you have a huge credit card outstanding, you should first clear that off. This is because it doesn't make sense to pay 40 per cent interest on a credit card loan and earning 12 per cent returns on your investments.

First, buy a health cover for you and family. Two, buy a term life insurance cover if you have financial dependents. Three, create a contingency fund that will cover your expenses of at least six months. These steps will ensure that no unforeseen events will derail your investment plans.

Next, try to find out answers to these questions.

Don't try to be evasive while answering these questions. If you don't clearly spell out various goals and how much money you would require, you are unlikely to achieve them. This is because a forgotten goal can have a cascading impact on your other investment programme. Similarly, it is also very crucial to get the investment horizon and instruments right.