Sunday, 22 September 2019

How Much Of Your Income Should You Invest?

What I want to talk about today is going back to the investing subject and more specifically how much money should you invest each month. If you have been with me for a while or maybe you've even started an account of your own, but you've probably asked yourself or even me sometimes, how much money should I invest each month?. Because it's a great question you should ask yourself that and it's really an important thing to think about, but here's the thing, there is not an answer, there is no answer that I am going to give you and really I don't think anyone can give you. There is no formula, I don't care what anyone says 10%, 5%, percentage-wise, I don't think there is an answer for that.

Understand That, Consistency Is King

What I want you to do is start looking at the consistency of investing each month and having that be the most important thing. I don't care if you can only put $50 a month, I don't care if you can put $5,000 a month, as long as you are consistently on top of it and adding, adding, adding, building, building, building, growing, growing, growing,  as long as you are doing that, that is what you should be focused on. I am going to talk to you about what I invest each month and this may be kind of old information for some of you, but I want to talk about why I want to do it and the main reason why I want to explain why I have this selection that I did, is to encourage anyone that is young to get started now. You're going to see that you don't need to contribute a whole lot to make a whole lot. If you are on the fence of should I invest or not, that is for other people, I don't have money to invest, stop thinking that way. You absolutely can do it and you should do it

Let's get started

I will flat-out to say this, I invest $100 a month, if you think that is underwhelming or super low, or can't you contribute more, yeah sure, I could do all that stuff, but look, 

here's why I don't

This Is A Loong Game, Not A Race...

First off, the dollar amount that you should invest is that you are comfortable not touching for a long time. I don't care if you had a 200% return, this is money that you do not want to touch for a very very long time. Because of that, I don't want to contribute $2,000 a month to something that I am not going touch for 30 years. There is no point for me sinking so much money into it knowing that I am going to touch it for a while. Even though I'm only contributing $100 a month and that is, for now, it will show you that even $100 a month can make a big difference in your financial situation, so if you've got a job or you don't have a lot of money but you need start invest, look at these numbers. 

If you are working and you cannot invest $100 to $50 a month, then you're doing something wrong, you should absolutely be able to do that even if your income is low. And going back to what I said earlier, if you can invest more, then that is great, but you do not need to invest crazy dollar amounts to be financially successful.

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