How much do you need to invest?
Once you are in a position to confidently invest you can put in as little or as much as you’re […]
Investing can help make the most of your money but it might not be the right next step for everyone. Whether or not to invest will depend on your financial situation, your goals the money you have and what you’d like to do with it.
Make sure you’ve built up your emergency savings which are easy to access. This is useful for when you have unplanned expenses like when the car breaks down or you need a new washing machine.
Money you put into investing should be left there for the long term to really reap the benefits. In general investing is only suitable if you can commit to leaving it alone for at least five to 10 years, ideally longer. If you’re prone to dip into your savings every month it’s worth waiting until you have the budget to invest with confidence.
Also make sure you focus on clearing away your debts as the interest rates accrued here can often outweigh the potential gain from investments.
Once you are in a position to confidently invest you can put in as little or as much as you’re comfortable with. For example you could put away £30 a month which is equivalent to a phone contract or three coffees a week.
If you want to drop in a lump sum instead of monthly payments you can start investing in funds or investment trusts with as little as £500.
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