First Time Investorshow Much Money Should You Invest

First Time Investorshow Much Money Should You Invest



First Time InvestorsHow Much Money Should You Invest?
Many first time investors think that they should invest all of​ their savings .​
This isn’t necessarily true .​
To determine how much money you should invest,​ you must first determine how much you actually can afford to​ invest,​ and what your financial goals are.
First,​ let’s take a​ look at​ how much money you can currently afford to​ invest .​
Do you have savings that you can use? If so,​ great! However,​ you don’t want to​ cut yourself short when you tie your money up in​ an​ investment .​
What were your savings originally for?
It is​ important to​ keep three to​ six months of​ living expenses in​ a​ readily accessible savings account – don’t invest that money! Don’t invest any money that you may need to​ lay your hands on​ in​ a​ hurry in​ the​ future .​
So,​ begin by determining how much of​ your savings should remain in​ your savings account,​ and how much can be used for investments .​
Unless you have funds from another source,​ such as​ an​ inheritance that you’ve recently received,​ this will probably be all that you currently have to​ invest .​
Next,​ determine how much you can add to​ your investments in​ the​ future .​
If you are employed,​ you will continue to​ receive an​ income,​ and you can plan to​ use a​ portion of​ that income to​ build your investment portfolio over time .​
Speak with a​ qualified financial planner to​ set up a​ budget and determine how much of​ your future income you will be able to​ invest.
With the​ help of​ a​ financial planner,​ you can be sure that you are not investing more than you should – or​ less than you should in​ order to​ reach your investment goals .​
For many types of​ investments,​ a​ certain initial investment amount will be required .​
Hopefully,​ you’ve done your research,​ and you have found an​ investment that will prove to​ be sound .​
If this is​ the​ case,​ you probably already know what the​ required initial investment is.
If the​ money that you have available for investments does not meet the​ required initial investment,​ you may have to​ look at​ other investments .​
Never borrow money to​ invest,​ and never use money that you have not set aside for investing!




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