When starting any endeavor, it's crucial to address four key questions: what, where, when, and why? When venturing into the realm of "investing," these questions should be reordered, with the foremost being why. This means clearly defining your goal. For instance, whether it's to build a house, buy a car, save for your children's education, or simply accumulate wealth. If you're ready to commit to investing seriously, there are three essential stages to navigate:

1. Investment Profiling 

2. Forming an Investment Portfolio 

3. Reviewing the Investment Portfolio

Investment Profiling:

In this stage, you must clearly define seven key aspects for yourself:

1. Define Your Personal Goal: The more specific your goal, the better you can choose suitable financial instruments and strategies, thereby reducing risks. Consider whether your goal aligns more closely with the stability of traditional investments or the potential high returns (and risks) of entrepreneurial ventures and partnerships.
2. Assess Your Investment Experience: Emphasize your own experience since you're risking your own money. If you do not have any investment experience, start with simple investments like Islamic bank deposits, then progress to mutual funds with a focus on index funds. Only after gaining experience and knowledge should you consider direct investments in stocks and Sukuk. Additionally, if you have experience in business management, you might consider starting your own business, investing in Mudarabah (profit-sharing) agreements, or entering into Musharakah (partnership) contracts.
3. Determine Your Investment Horizon: This refers to the timeframe within which you expect to achieve the necessary profits to meet your personal goal, considering your own experience. The choice of financial instruments depends on this horizon. For short-term goals (up to one year), focus on Islamic deposits. For longer horizons, consider mid-term Sukuk and possibly stocks if your investment horizon extends beyond two years. If you are considering starting a business or entering into Mudarabah or Musharakah, recognize that these often require a longer investment horizon and more patience before realizing returns.
4. Evaluate Your Risk Tolerance: Risk tolerance defines the level of acceptable losses. Ask yourself what percentage of your invested amount you're willing to lose. This is a tough question but essential. For instance, if you expect a 20% annual return, are you prepared to risk losing part of your capital? If not, opt for lower-risk securities. Starting a business or investing in Mudarabah or Musharakah contracts can offer high returns but also come with substantial risks, including the potential loss of your entire investment.
5. Allocate Your Capital for Investments: Exclude the real estate you live in from your personal capital. Consider everything else as assets and decide what percentage of these assets you're willing to invest. Avoid investing all your capital; experts recommend maintaining a 8-12-month reserve in cash or deposits to sustain your standard of living in adverse conditions. When considering business ventures or partnerships, ensure that you have sufficient liquidity to cover not just initial investments but also potential additional funding requirements and personal living expenses.
6. Consider Your Age: Age influences your investment horizon and risk tolerance. Younger individuals can afford higher risks since they're investing for the future and have time to recover from losses. Retirees, however, should adopt a more conservative approach due to limited time to recoup potential losses. Business ventures and partnerships might be more suitable for younger investors who have the energy and time to commit to these endeavors.
7. Choose Your Investment Currency: Understand which currency you intend to spend your earnings in, especially for deposits and Sukuk. Stocks, being currency-neutral, are exceptions. Nonetheless, consider investing the majority of your capital in your intended spending currency for stability. When entering into Mudarabah or Musharakah contracts, be aware of the currency risks involved, particularly if your business partners are in different countries.

These steps ensure a structured approach to investment decision-making, aligning your goals with suitable strategies and minimizing risks along the way.