For the long-term, Singapore’s stock market, as represented by the Straits Times Index, has returned around 7% per annum, including dividends.

That return is not too shabby, considering banks are giving a paltry 0.05% interest and the average inflation is at some 3% per annum.

For those who wish to get higher returns from the stock market, you can consider investing in individual companies instead of buying the market.

But…

Source: Giphy

Before you get all too excited and jump into the stock market right away, you should consider whether you have done the following:

1. Have You Paid Off All Your High-Interest Debt Yet?

The outstanding amounts on credit cards attract a high interest of around 24% per year. And over time, if you don’t clear that debt, those loans will snowball due to the compounding effect. 

With the Singapore stock market on average