Investing is an essential part of building and maintaining financial stability.
But investing is only one piece of the puzzle.
Finding that balance can be tricky, but we’ve got some tips to help you get there.
But it may not be easy to start investing that much immediately.
Bear in mind that 10% to 15% of your income is just a rule of thumb.
Your montly investment contribution should be tailored to your unique financial position.
So how much should you aim to invest each month?
As yourself the following questions to help figure this out.
How much room do you have in your budget?
Do you have enough emergency savings?
Most experts recommend havingbetween three and six months' worthof expenses in asavings accountat all times.
Do you have high-interest debt?
But if you have high-interest debt,paying that debt offshould be your top priority.
This may mean limiting your investment activities until your this debt is a thing of the past.
How much will you need in retirement?
Aretirement calculatorcan help you determine how much you should invest each month to reach your goal.
Do you have other investment goals?
Retirement isn’t the only reason you might want to invest.
Consider all of your long-term goals and how much money you’ll need to achieve them.
Then, use aninvestment calculatorto determine how much you’ll need to contribute each month to achieve those goals.
Your investment strategy should grow with you
Your financial situation will change over time.
As it does, your investment strategy should adapt to accommodate these changes.
For example, if you get a raise, you could put more each month toward your investments.
Remember that however much you’re free to put away right now, every little bit counts.
