How much money to spend on investments?

Another topical question when it comes to investing for beginners is: "how much money should we spend on financial investment"? There is no exact answer to this question. This depends on three main factors:

* personal capabilities * financial objectives * risk tolerance

Personal opportunities can be very different for future investors, so it is not possible to determine the exact amount to start with.

At the same time, start identifying your financial goals. What would you need in the future? You may want to buy a house or a car, finance your child's education, plan vacations abroad, start or develop a business or a new venture, or just have enough money when you retire.

The answers to these questions will give you an idea of your financial goals. The next aspect you need to consider is your risk tolerance or your ability to take risks. It depends on factors such as current income, savings, expenses, financial obligations (such as paying off a mortgage) and adequate financial coverage for life and health. And not least of his own temperament.

You can also look at the investment horizon or the time for which funds can be allocated without the need for them. It will depend on whether you focus on short-term investments or long-term ones.

Cumulative investment (a certain amount each month, for example) can make small rates of return on investment look serious when it comes to longer periods of time.

Both extended deadlines and higher rates of return could give you similar results. This makes different investments for beginners interesting and suitable for different purposes