How Much Of Your Money Should You Invest to Watch Your Portfolio Grow
So you want to start investing your money? That’s a smart move. Investments are the best way to really plan ahead for your future and allows you to get the ball rolling now.
The problem is, you don’t really know exactly how much of your money should you invest in order to make successful moves for your future. The art of the investment is complex, and one that you could use some serious help navigating.
Luckily, you don’t have to worry about going it alone. This article is here to help you solve your problems and show you exactly what you need to do to take the right steps for your investment. Keep reading to learn more.
How Much of Your Money Should You Invest in Your Portfolio? Start with Your Savings
Knowing how to handle your stocks is a pretty big deal, but it matters little if you don’t know how to save up in the first place.
Americans, in general, have a pretty bad spending problem, and they don’t really know how to save properly. A considerable part of your investment portfolio is your savings, so it pays to be able to learn how to store your funds.
As a general rule of thumb, it’s best to save up at least 20% of your paycheck each pay period. That gives you enough money to deal with the present-day matters, while also allowing you to store significant amounts for the future.
Check out the Return on APY
So here’s the thing: APY is not really directly related to how much you should invest, but it is related to where you should invest your money.
We’ve all heard about API before. Basically, when it comes to loans and other types of official borrowing and financing, you have a certain percentage of extra funds that are applied to the principal amount that you also have to pay.
With APY, the tables turn in your favor. This is where the system starts to pay you back for your investment – and the more you put in, the more you’ll get back out.
Look into which accounts and agencies offer a good APY for you to start making some extra money off of your finances.
5 Percent is the Lucky Number
No matter how you may play the stock market, it goes without saying that there are certainly some risks involved with working in stock. That being said, it’s still definitely worth your time – if you play the game carefully.
If you’re just starting out with stock, you’ll want to get your toes wet first. Invest only a little of your paycheck – 2 to 3 percent is a pretty safe number – and invest in a company that you’ve heard of and strongly resonate with.
If you’re feeling riskier, you can place upwards of 5 percent or even more into stock. better yet, you could distribute your funds into multiple stocks to broaden your portfolio.
After you do that, sit back and watch the savings grow. Or you could continue to invest a percentage of your checks into other stock accounts. The choice is totally up to you.
Let’s Get You Started
Now that you’ve learned how much of your money should you invest in your portfolio, it’s time to start getting things together for your future. We can help you do that.
At Stock Loan Solutions, Our goal is to help you get on the right track with your stock market experience. We fund stock loans of a wide variety, from $50,000 to $5 million, for stocks traded on all major U.S. stock exchanges.
Ready to get started? So are we. Send us a message and let us know how we can help you. We look forward to making your stock exchange experience a success!