1. The ten principles of successful investing are the following: (1) know yourself, (2) understand risk, (3) stay diversified, (4) invest low-cost and tax-efficiently, (5) invest for the long run, (6) use caution if you are investing in individual assets, (7) monitor portfolio performance against benchmarks, (8) do not waste too much time and energy trying to beat the market, (9) invest only with high-quality, licensed, reputable people and institutions, and (10) develop a good investment plan and follow it closely.
2. There are four questions you should ask before you begin investing. Remember the top half of the investment hourglass. The questions are:

• Are your priorities in order and are you square with the Lord?
• Do you have adequate health and life insurance to care for the needs of your family if something were to happen to you?
• Are you out of high-interest credit card and consumer debt?
• Have you written down your goals? Are you living on a budget? And do you have a well-written and well-thought-out investment plan?

It is important to ask these questions first as they help you prepare a “priorities-based” investment plan; in this plan, God comes first, then family, then personal responsibility and accountability, and then investments. There is no better way to start investing than to have your priorities in order.

3. It is important to invest in an emergency fund first because emergencies happen. When they do, you need to have liquid funds available to meet your needs without having to sell long-term assets that you do not want to sell. If you have an emergency fund, your longer-term assets are truly that. You do not run the risk of having to sell longer-term assets to meet shorter-term needs.