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…