This is one of the most common questions asked of all people who want to start investing. How much money does it take to get started in the stock market? Will I have to save for twenty years or will it be enough to save a couple of months? Is there any minimum figure?
Those who are outside the world of investment often think that the stock market is reserved for people with a lot of money. People capable of hiring expert advisors to manage their investments for them. However, the reality is quite different: anyone can invest in the stock market on their own and will not need much money to start .
You don’t need to be rich to invest in the stock market. Just have a normal job, with a normal income and a normal saving capacity. In fact, it is advisable to start with little money , as if it were an “experiment”, and gradually increase the investment, as you see the results.
Savings and investment go hand in hand
What you will need is to save. To invest you need to be able to save, since money is the first matter of investment . And this is where many see the problem. You should allocate a percentage of your income to savings. And in turn, a percentage of savings to investment.
For example, if you earn 1,500 euros a month and want to have a 20% savings capacity, you will have to save 300 euros every month. From that figure you can allocate, for example, 250 euros to investment and the other 50 to your contingency fund. Or maybe to treat yourself in the future, why not.
Therefore, you could start investing with those 250 euros , a minimum amount from which you can create your investment assets. The following month you can invest another 250 euros, and so every month for a year. In this way, in twelve months you will have 3,000 euros invested in shares.
Finally, three tips before starting to invest
At the beginning, your objective in the stock market should not be to obtain high profits, but to gain experience and training . Stock market investment is a very complicated field in which many “brave” have lost everything. Never forget that most people who invest in the stock market for the first time and without training end up losing money.
Another important aspect to consider, especially if you invest little money, is to know the impact that the commissions associated with the investment will have on your money. There are many types of commissions: purchase and sale, custody of securities, collection of dividends, capital increases …
Do not get caught by surprise
Finally, as your invested capital increases, don’t forget the basic investment rule: diversify your portfolio with securities from several companies, different sectors and different countries. In other words, don’t put all the eggs in the same basket. Spreading risks minimizes the likelihood of things going wrong.
We hope we have resolved all your doubts. Good cheer on your first investment!