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
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.
What were your savings originally for? Do you have savings that you can use? 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. If this is the case, you probably already know what the required initial investment is. For many types of investments, a certain initial investment amount will be required.
If so, great! First, let’s take a look at how much money you can currently afford to invest. So, begin by determining how much of your savings should remain in your savings account, and how much can be used for investments. Hopefully, you’ve done your research, and you have found an investment that will prove to be sound.
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. Many first time investors think that they should invest all of their savings. It is important to keep three to six months of living expenses in a readily accessible savings account – don’t invest that money! This isn’t necessarily true. 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. Don’t invest any money that you may need to lay your hands on in a hurry in the future.
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