Lesson 15 of 43: How Much Money Should You Invest in Stocks?

  • For several reasons, steadily adding to your investments over time is likely to provide a huge boost to your long-term wealth.

  • We try to invest as much as we can in stocks because every extra dollar we invest wisely today could be worth $5, $10, $20, or more in the future.

  • However, never invest money in stocks that you’ll need in cash in the next 5-10 years.

When beginner investors start developing their personal investing plan, there are often two types of “how much money” questions that come up:

  • How much money do I need to start investing in stocks?
  • How much money should I invest in stocks?

These are two very different questions.

“How much money do I need to start investing in stocks?” is about the minimum necessary to get started investing.

Whereas, “How much money should I invest in stocks?” is about how much of your personal savings should you allocate to stock market investing.

Let’s tackle each of them below.

How Much Money Do I Need to Start Investing in Stocks?

Technically, there’s no minimum amount of money needed to start investing in stocks. But you probably need at least…

This is just a preview from our free course: How to Invest in Stocks: Learn How to Buy Stocks, Make Money, and Avoid Mistakes
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