How Much of Your Money Should You Invest

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How Much Of Your Money Should You Invest


Investing is a personal decision. The amount of money you invest depends on how much you are willing to spend and how long you’re willing to wait.

Investing in index funds will help increase your investment returns, but they could also be costly if they require a lot of money up-front in order to grow.

If you’re unsure what kind of investments would fit your needs, the best thing to do would be to consult with a financial planner ಠ_ಠ

Everyone wants to save money but not everyone knows how to invest. This is where your personal finance goals come in.

There is a lot of advice out there about how much of your money should you invest, so it can be confusing. Some people say that you should put 10% and others say that you should put 20%.

The truth is that the percentage will depend on your age and current financial situation. If you’re just starting out, then it would make sense to start with a smaller percentage and increase it as time goes on – especially if you’re young and don’t know what to expect in the future.

Many financial strategists recommend investing anywhere from 10-20 per cent of your income.

This may seem daunting, but it can be done with some hard work and discipline!


How much should you invest in your situation?

There are a few key factors that will affect how much you put into investments.

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They may change over time based on your situation, so just realize that while you may invest 12 per cent annually today, you may decide to invest 22 per cent annually down the road.


These factors you should keep in mind are:

  • Your debts and other expenses
  • Your short term goals
  • Your long-term goals

Different people are in different places in life, and you may have to take care of some debts and focus on the short term first.

Investing for beginners is still investing, and you can grow that amount as you gain confidence.

In the long run, you still want to be able to put money aside for your retirement, and that requires doing some baby steps and investments first.

It should be noted that investing here generally falls under the category of putting money away to grow and be used later.

People do put money into both short and long-term investments, but a very common reason for investing is saving for retirement.

How Do You Free Up Money

A lot of people feel stuck because they don’t have 10-20% of their income to spend on investments.

They’re barely breaking even as it is! A huge number of families today live paycheck to paycheck, which makes it quite difficult to save for the future.

The two best ways to free up your money are to budget (or make a “cashflow plan” or a similar term, if you prefer) and to cut your excess spending.

We all spend money we shouldn’t, and it can be amazing to realize just how much can be cut.

When you start budgeting and putting money aside to invest, you’ll be pleasantly surprised at how much it adds up.

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Even if it’s just a few hundred dollars at a time, those investments can quickly grow.

Where Should You Invest

There are a lot of ways to invest. Some people recommend putting money into savings accounts, while others say an IRA or the stock market are your best bets.

In general, though, you don’t want to put all of your eggs into one basket.

It’s usually wise to diversify, using various investment strategies and tools to help you build your wealth. And they don’t all have to be the “traditional” plans that everyone uses!

If you’re feeling daring, you can consider trying your luck with cryptocurrency, or you can go a safer route and use a website like to invest in the Australian stock market.

Whatever you decide to do, make a plan, stick with it, and put money away. In the long run, you’ll be glad you did!

Learn More About Investing

At the end of the day, how much of your money should you invest? It depends a lot on your situation, but now is always a great time to get out there and start using your money wisely!

If you have any questions or want advice on how to get started or the best investments to try, we’d love to help.

Feel free to contact us, and we’ll do our best to help you get on your path to money success.


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