The general rule with investing is the sooner you start on the longer you leave it, the better. But it’s important to make sure you’re in the right financial position to start.
Build yourself a realistic monthly budget for everyday expenses. This is also a great chance to reduce unnecessary expenses.
Make sure you’ve built up your emergency savings which are easy to access. A general rule of thumb is three to six months’ salary to cover any unexpected curveballs life throws at you.
Also make sure you focus on clearing away your debt as the interest rates accrued here can often outweigh the potential gains of investments. If this feels daunting, read up on the avalanche and snowball methods that take different approaches to paying down high interest debt.
Then you’ll want to max out on any employer sponsored retirement plan if available. An employer pension is often a great way to start investing.
Once you are in a confident position to invest you can put in as little or as much as you’re comfortable with.
It’s a great idea to read up on a variety of different options to work out which works best for you and your investment goals.
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