First Time Investorshow Much Money Should You Invest

First Time Investorshow Much Money Should You Invest 1

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!

First Time Investorshow Much Money Should You Invest

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