How much Money do I Need to Start Investing?

If anyone tells you that you must have $10,000 in order to start investing, and better yet that they can give you a 30% return, you need to stay as far away from them as you can.You’d actually be surprised how little you can invest.

For. example, if you lend $2 to a friend and say you want it back by the end of the year with 10% interest, you’ve just invested $2.Sure, you’ve only made 20 cents, and that’s if they pay you back, but that’s just my point.You don’t need $10,000 to start investing.You don’t need close to that.

It depends on what you invest in and where you invest.

If you are going to invest in a mutual fund, usually they require at least a $1,000 minimum. The same goes for some brokerage firms and often bonds and CDs, but there are many exceptions.

If you don’t have enough money yet, just keep saving until you do.

If you want to start investing now, but you are only able to put aside $20 a month, put the money into a high interest savings account until you have more and are ready to invest. Or better yet, put aside more than $20 a month.

There is no requirement that you need to start with this certain amount, at this certain date, and at this frequency. If you have to wait a year until you have $1,000 to invest in a mutual fund, wait. If you can only invest every other month, do that. Just the fact that you are investing puts you ahead of a lot of people.

Don’t use this as an excuse to make stingy investments.

If you are able to invest $2,000 a month and still live comfortable, by all means, do it! Don’t make excuses just because they’re there. It’s all about balancing between a livable lifestyle and securing a stable future.

The problem with a lot of people, myself included, is that we decide we have to go overboard with everything we do or not do it at all.If you can’t invest $1,000 a month, do what you can.If you can invest $1,000 a month, do it!It’s that simple.

In the end, the most important thing is that you invest and save for your future. You don’t know that social security will be enough, that you’ll still have your pension, or that you won’t end up on disability for the rest of your life. Having money set aside at all time growing all by itself will do a world of good for you, so take advantage of it.