There’s a common misconception that you need to have tens of thousands of dollars saved up before you’re able to start investing. Truth is, you don’t need much to get started.
There are ways to get into the market with more modest sums, from using low-cost brokerage firms to using a robo-advisor like Syfe, which offers $0 account minimums. With no minimum investment requirement, you can start with just a few hundred dollars and add more to your portfolio over time.
Don’t underestimate the power of starting early, even if you can’t contribute a lot just yet. That’s because the power of compounding allows your investment returns to earn more returns on itself. So in the long run, a small amount of money invested earlier will end up being more than a large amount of money invested later.
The right amount to invest
The right investment amount for you could be very different from the right investment amount for your neighbour. It all depends on your personal financial situation and your investment goals.