{"id":200,"date":"2022-03-22T10:42:51","date_gmt":"2022-03-22T10:42:51","guid":{"rendered":"https:\/\/compoundingstacks.com\/?p=200"},"modified":"2022-04-04T15:11:57","modified_gmt":"2022-04-04T15:11:57","slug":"how-much-should-i-invest-in-stocks-per-month","status":"publish","type":"post","link":"https:\/\/compoundingstacks.com\/how-much-should-i-invest-in-stocks-per-month\/","title":{"rendered":"How Much Should I Invest In Stocks Per Month?"},"content":{"rendered":"\n
You have your emergency fund set up, your high-interest debts paid off, and you feel financially secure. At this point, you want to start seeing your money work for you. <\/p>\n\n\n\n
Investing in the stock market can provide you with a secondary source of income, and even some money for the retirement plan. <\/p>\n\n\n\n
How much money you invest in stocks per month<\/a> is dependent on your after-tax income. Save space in the budget for savings, and use some of this to invest in stocks. <\/p>\n\n\n\n The exact amount should be based on your own salary.<\/p>\n\n\n\n To find out more about investing in stocks, and what amount is right for you, take a look at this guide. <\/p>\n\n\n\n There’s no clear and exact answer to how much you should invest in stocks. It depends on your age, risk tolerance, financial goals, time horizon, and more. <\/p>\n\n\n\n But the best way to figure out what amount of money is right for you is by reviewing your overall income. <\/p>\n\n\n\n There’s a widely held belief that the only way to make money on the stock market is by investing high<\/a>. You have to spend money to make money, right? <\/p>\n\n\n\n But this isn’t necessarily true and can do more harm than good. A massive initial investment isn\u2019t the only way to get into stocks.<\/p>\n\n\n\n The easiest way to decide how much to invest in stocks is to choose a percentage of your income after tax. Many financial planners will recommend investing between 10% and 15% of your salary after-tax. <\/p>\n\n\n\n This should go towards stocks, bonds, and acquiring other assets.<\/p>\n\n\n\n However, for an initial investment, or a higher income, you should consider investing a larger amount: over 20%. Again, the payment should be based on your income level.<\/p>\n\n\n\n The 50\/30\/20 rule is a popular budgeting method that easily divides your after-tax income into categories. <\/p>\n\n\n\n 50% of your after-tax income goes towards necessary monthly expenses, 30% goes to the things you want, and 20% goes towards savings and investments.<\/p>\n\n\n\n Following that rule, you’d have 20% of your income to play with. Some percentage of this should be saved. <\/p>\n\n\n\n This may be a regular contribution to an emergency fund, savings for a short term goal, or working towards a long term goal. <\/p>\n\n\n\nHow Much Should I Invest In Stocks?<\/strong><\/h2>\n\n\n\n
A Percentage Of After-Tax Income<\/strong><\/h3>\n\n\n\n
50\/30\/20<\/strong><\/h3>\n\n\n\n