You don't have to be rich, to be my girl (apologies Prince!)....
I was chatting with one of my coaches this week. Yes, coaches need coaches too as part of our own journey! We were talking generally about investment and she mentioned that she doesn’t tend to look at investing any less than $25,000 at a time.
For her, that’s her minimum – she wouldn’t expect to allocate any less than that to any investment opportunity, whether that’s a slow and steady returning fund, or whether it is something rather more speculative. That’s her bottom line investment.
Great, if you’ve got bundles of $25k sitting around as spare cash.
But investing is available to people who have FAR less available to commit.
Yes, some investment managers require you to invest a certain amount as a minimum.
Yes, some investment types require you to invest a certain amount as a minimum.
Yes, some investors (like my coach) expect to invest a certain amount as a minimum.
It all comes down to what you can afford to put away, for the longer term, along with the amount of risk that you, personally, are comfortable in taking.
So, whether you have £10 a month that you can comfortably commit to, or £100k. There is something out there for you. But it is just as important to get the RIGHT type of investment for you – something that is going to fit with your objectives, your future goals, your values.
In fact, it’s likely to be MORE important to get the right type of investment for you, when you have less to play with. For my coach, if one of her $25k investments goes belly up, she’s unlikely to notice too much of a difference. But for someone who is putting £100 a month away to build up a fund for retirement, if one of the chosen investment types fails, the pain could potentially be harder to bear.
There are lots of ways that you can get on the investment ladder. From apps that allow you to invest just a few pounds at a time, through online "robo-advice" products, to working with a dedicated wealth manager. There is something for everyone - it has been a long time since investing was out of the reach of the masses. Of course, a combination of all these can be useful too - putting a lump sum away initially, then adding little by little to it each month.
What is important is to know what you can genuinely afford to put away each month, or as a lump sum that you don't need to access again immediately. Little and often, with consistency over the longer term, can be just as good if not better than a "one off" chunky investment.
Personally, I like to treat my regular investment like any other bill or commitment. I have regular payments set up just after payday, to an investment ISA and a couple of other things, so that investment is made without me needing to think too much about it. For me, knowing that it is done automatically - just like paying my utility bills or the mortgage, means that my wealth is building steadily in the background with the minimum of organisational stress!
The absolute key is to understand what it is you’re looking to achieve, and knowing the risks and potential returns that come along with the various types of investment, before making an informed decision that you feel totally able to afford. This doesn’t mean that you stay in your comfort zone – the very fact that you’ve not invested so far, or not invested as much as you might like, means that you need to consider stretching your comfort zone a little!
I cover some of the things to consider in my free guide. It's not all about picking the right stock or fund, and investing thousands!
What is also certain is that by taking no action, you will build no investment wealth, especially while bank cash rates are so low. That might be the right thing for you, but have you really given everything the appropriate amount of thought and consideration before ruling it out?
If you want to know more about investing, what you need to REALLY consider, and discovering some of the potential routes you can consider, then why not jump onto my masterclass on 19th September. More information is here https://www.mymoneymovement.co.uk/investment-2-hr-masterclass and I can promise you an absolute wealth of information for you to takeaway!
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