Financial experts highlight capital shortages as primary barrier to investing

Financial experts emphasize that building a solid foundation through an emergency fund is the essential first step toward personal financial independence and successful investing.

A survey by Across Private Investments reveals that for many Slovaks, the primary obstacle to investing is not a fear of risk or a lack of knowledge, but rather a lack of available capital. Approximately 40% of respondents identified insufficient funds as their main barrier, and 40% of households possess a financial reserve of only one month's salary or none at all.

To mitigate risks, specialists recommend establishing an emergency fund covering three to six months of living expenses before committing to volatile assets. Experts suggest that investing funds intended for emergencies can lead to forced liquidations at inopportune times, resulting in losses. Strategies to improve financial standing include controlling household expenditures, automating savings of at least 10% of income, and increasing market value through retraining or new skills.