Most people who want to start investing immediately ask the question — how much money is actually needed to begin investing? Or is there some specific minimum amount?
Questions like these aren’t entirely correct. After all, if you invest a small amount, your returns will be small as well.
First, you should set a clear goal. You need to understand exactly how much you want to earn from your investments. For example, if a balanced portfolio brings in between 200% and 300% annually, then the minimum you could expect is about 100% per year — which equals roughly 8.4% per month.
Let’s do some quick calculations.
Suppose you invest $10 — your monthly income would be about $0.80. Unfortunately, that amount isn’t enough to make a real difference.
However, if you expect a monthly income of around $1000 from your investments, you would need to start with approximately $12,000.
12000 * 8.4% = $1008
If you don’t have that amount available, it’s better to start small. Set yourself the goal of saving around 15% of your monthly income to build up your investment capital.