How Much Money Shall John 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?
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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!
Books on Invest Money
1,001 Ways to Save, Grow, and Invest Your Money
by David E. Rye - Business & Economics - 1999 Includes index. .
How to Invest Your Money & Profit from Inflation
by Morton Shulman - Business & Economics - 1980 . .
How to Invest Money Wisely
by John Moody - Investments - 1912 . .
How to Invest Money
by George Garr Henry - Investments - 1908 . “Most of the matter which is presented has appeared in the pages of ‘System’ magazine.”–Pref. .
Mary Farrells Beyond the Basics: How to Invest Your Money, Now That You Know
by Mary Farrell - Business & Economics - 2000 . Building on the knowledge you already have, she offers new ways of thinking about your money and tells you which investment strategies can make .
The Complete Idiot’s Guide to Personal Finance in Your 20s and 30s
by Sarah Young Fisher, Susan Shelly - Business & Economics - 2002 . Where to Invest Your Money We’ve told you a little bit about various investment vehicles and the risks and opportunities associated with them.
William E. Donoghue’s Guide to Finding Money to Invest: Building a Lifetime
by William E. Donoghue - Business & Economics - 1985 . Offers advice on how to find hidden cash resources and utilize them to create a lifetime savings plan .
The Everything Personal Finance Book: Manage, Budget, Save, and Invest Your
by Peter Sander - Business & Economics - 2003 . Invest The key to making money and protecting it is smart money management. Ensure financial security– Save money through tax strategies.
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Best Way To Invest Money said,
May 15, 2008 @ 9:54 pmHi,
Many people who are new to investing think that they have to invest all their savings. However, this is not true. In order to figure out how much money should you invest, you first have to determine whether you can afford to invest and what your financial goals are.
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April 24, 2008 @ 12:46 am[…] How Much Money Shall John Invest? 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, … […]