{"id":2491,"date":"2021-01-13T14:25:38","date_gmt":"2021-01-13T06:25:38","guid":{"rendered":"https:\/\/www.syfe.com\/magazine\/?post_type=guide_article&#038;p=2491"},"modified":"2021-01-27T18:10:18","modified_gmt":"2021-01-27T10:10:18","slug":"how-much-money-do-you-need-to-start-investing","status":"publish","type":"guide_article","link":"https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/","title":{"rendered":"How Much Money Do You Need To Start Investing?"},"content":{"rendered":"\n<p>There\u2019s a common misconception that you need to have tens of thousands of dollars saved up before you\u2019re able to start investing. Truth is, you don\u2019t need much to get started.&nbsp;<\/p>\n\n\n\n<p>There are ways to get into the market with more modest sums, from using low-cost brokerage firms to using a robo-advisor like Syfe, which offers $0 account minimums. With no minimum investment requirement, you can start with just a few hundred dollars and add more to your portfolio over time.<\/p>\n\n\n\n<p>Don\u2019t underestimate the power of starting early, even if you can\u2019t contribute a lot just yet. That\u2019s because the <a href=\"https:\/\/www.syfe.com\/magazine\/how-compounding-can-help-make-you-rich\/\">power of compounding<\/a> allows your investment returns to earn more returns on itself. So in the long run, a small amount of money invested earlier will end up being more than a large amount of money invested later.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The right amount to invest&nbsp;<\/strong><\/h2>\n\n\n\n<p>The right investment amount for you could be very different from the right investment amount for your neighbour. It all depends on your personal financial situation and your investment goals.<\/p>\n\n\n\n<p>Generally, here\u2019s what to take note of when deciding the right initial investment amount for yourself:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Adequate <a href=\"https:\/\/www.syfe.com\/magazine\/why-you-need-an-emergency-fund\/\">emergency savings <\/a>covering about three months of your income<\/li><li>Adequate insurance coverage<\/li><li>Minimal high-interest debt like credit card debt\u00a0<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Follow the 50\/30\/20 rule<\/strong><\/h2>\n\n\n\n<p>Many people also find it helpful to create a budget that determines how much money they can set aside for investing each month. A general rule of thumb is to allocate 50% of your salary to essential needs, 30% to discretionary spending, and 20% to savings and investments.&nbsp;<\/p>\n\n\n\n<p>After considering the above factors, you should be able to find an amount you can commit to investing every month. That could be $500 a month, or maybe $2,000 a month. The overall amount doesn&#8217;t really matter as long as it is an amount you can keep contributing regularly, regardless of market moves. This is also known as <a href=\"https:\/\/www.syfe.com\/magazine\/the-power-of-dollar-cost-averaging\/\">dollar cost averaging<\/a>, a strategy that averages out the cost of your investments and helps you build wealth over time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How to invest with $500 a month<\/strong><\/h2>\n\n\n\n<p>One benefit of using a platform like Syfe is that with a modest initial sum, you can start to build a diversified portfolio with exposure to thousands of companies.&nbsp;<\/p>\n\n\n\n<p>Say you\u2019ve decided that $500 each month is the right investment amount for you. It will be difficult to get a multi-asset portfolio with this initial investment if you were to invest through traditional brokers.&nbsp;<\/p>\n\n\n\n<p>But with Syfe\u2019s <a href=\"https:\/\/www.syfe.com\/magazine\/understanding-our-global-ari-portfolio\/\">Global ARI portfolio<\/a>, your $500 investment will get you a diversified portfolio consisting of stocks, bonds and gold. In essence, you\u2019ll be investing in thousands of companies from around the world, and across a broad range of industries, with just one portfolio.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>A look into the future<\/strong><\/h2>\n\n\n\n<p>If you stick diligently to your $500 a month investment plan, here\u2019s how much it can grow to after 15 years with our 25% risk option portfolio. As you can see, you can potentially earn three times more by simply investing, rather than leaving your savings in the bank.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2022\/11\/Lg1oOJ2MoN_uG67IgfF_8p8gVxbkqk8da1PoLClQimWnEfBo7xpQ-YmTkKv9E0rttaBd7LAd0BKHi7PVf2txtWDs6URMBHKRmJwt_oerv7uh3PmcQUwwX8GlMSJuTOXCjpOozEU.png\" alt=\"\"\/><\/figure>\n\n\n\n<p>Of course, you can also boost your returns with ad-hoc investment amounts, such as when you <a href=\"https:\/\/www.syfe.com\/magazine\/6-smart-ways-to-spend-your-bonus\/\">get your bonus<\/a>. Because Syfe has no minimum investment amount and no brokerage fees, you can invest any amount you prefer at any time.<\/p>\n\n\n\n<p>The key takeaway is that it&#8217;s never too early to start investing. You don\u2019t need to wait until your salary is \u201cenough\u201d to begin your investment journey. If you\u2019re ready to get going, <a href=\"https:\/\/invest.syfe.com\/join-now-fee-waiver\/\">open an account now <\/a>and enjoy six months free investing with the code \u201c<strong><a href=\"https:\/\/invest.syfe.com\/join-now-fee-waiver\/\">SYFEWAIVER<\/a><\/strong>\u201d.&nbsp;<\/p>\n","protected":false},"featured_media":0,"template":"","guide":[26],"class_list":{"0":"post-2491","1":"guide_article","2":"type-guide_article","3":"status-publish","5":"guide-investing-basics"},"acf":{"readingTime":"4","authorName":"","authorThumbnail":false,"publishDate":"2021-01-13","thumbnail":"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2021\/01\/6.png","order":"4"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How Much Money Do You Need To Start Investing?<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Much Money Do You Need To Start Investing?\" \/>\n<meta property=\"og:description\" content=\"There\u2019s a common misconception that you need to have tens of thousands of dollars saved up before you\u2019re able to start investing. Truth is, you don\u2019t need\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/\" \/>\n<meta property=\"og:site_name\" content=\"Connect\" \/>\n<meta property=\"article:modified_time\" content=\"2021-01-27T10:10:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/lh3.googleusercontent.com\/Lg1oOJ2MoN_uG67IgfF_8p8gVxbkqk8da1PoLClQimWnEfBo7xpQ--YmTkKv9E0rttaBd7LAd0BKHi7PVf2txtWDs6URMBHKRmJwt_oerv7uh3PmcQUwwX8GlMSJuTOXCjpOozEU\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/\",\"url\":\"https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/\",\"name\":\"How Much Money Do You Need To Start Investing?\",\"isPartOf\":{\"@id\":\"https:\/\/www.syfe.com\/magazine\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2022\/11\/Lg1oOJ2MoN_uG67IgfF_8p8gVxbkqk8da1PoLClQimWnEfBo7xpQ-YmTkKv9E0rttaBd7LAd0BKHi7PVf2txtWDs6URMBHKRmJwt_oerv7uh3PmcQUwwX8GlMSJuTOXCjpOozEU.png\",\"datePublished\":\"2021-01-13T06:25:38+00:00\",\"dateModified\":\"2021-01-27T10:10:18+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/#primaryimage\",\"url\":\"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2022\/11\/Lg1oOJ2MoN_uG67IgfF_8p8gVxbkqk8da1PoLClQimWnEfBo7xpQ-YmTkKv9E0rttaBd7LAd0BKHi7PVf2txtWDs6URMBHKRmJwt_oerv7uh3PmcQUwwX8GlMSJuTOXCjpOozEU.png\",\"contentUrl\":\"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2022\/11\/Lg1oOJ2MoN_uG67IgfF_8p8gVxbkqk8da1PoLClQimWnEfBo7xpQ-YmTkKv9E0rttaBd7LAd0BKHi7PVf2txtWDs6URMBHKRmJwt_oerv7uh3PmcQUwwX8GlMSJuTOXCjpOozEU.png\",\"width\":1600,\"height\":476},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.syfe.com\/magazine\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How Much Money Do You Need To Start Investing?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.syfe.com\/magazine\/#website\",\"url\":\"https:\/\/www.syfe.com\/magazine\/\",\"name\":\"Connect\",\"description\":\"Helping you take charge of your financial future\",\"publisher\":{\"@id\":\"https:\/\/www.syfe.com\/magazine\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.syfe.com\/magazine\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.syfe.com\/magazine\/#organization\",\"name\":\"Syfe Pte Ltd\",\"url\":\"https:\/\/www.syfe.com\/magazine\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.syfe.com\/magazine\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2019\/05\/logo_black.png\",\"contentUrl\":\"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2019\/05\/logo_black.png\",\"width\":550,\"height\":240,\"caption\":\"Syfe Pte Ltd\"},\"image\":{\"@id\":\"https:\/\/www.syfe.com\/magazine\/#\/schema\/logo\/image\/\"}}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"How Much Money Do You Need To Start Investing?","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"How Much Money Do You Need To Start Investing?","og_description":"There\u2019s a common misconception that you need to have tens of thousands of dollars saved up before you\u2019re able to start investing. Truth is, you don\u2019t need","og_url":"https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/","og_site_name":"Connect","article_modified_time":"2021-01-27T10:10:18+00:00","og_image":[{"url":"https:\/\/lh3.googleusercontent.com\/Lg1oOJ2MoN_uG67IgfF_8p8gVxbkqk8da1PoLClQimWnEfBo7xpQ--YmTkKv9E0rttaBd7LAd0BKHi7PVf2txtWDs6URMBHKRmJwt_oerv7uh3PmcQUwwX8GlMSJuTOXCjpOozEU","type":"","width":"","height":""}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/","url":"https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/","name":"How Much Money Do You Need To Start Investing?","isPartOf":{"@id":"https:\/\/www.syfe.com\/magazine\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/#primaryimage"},"image":{"@id":"https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/#primaryimage"},"thumbnailUrl":"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2022\/11\/Lg1oOJ2MoN_uG67IgfF_8p8gVxbkqk8da1PoLClQimWnEfBo7xpQ-YmTkKv9E0rttaBd7LAd0BKHi7PVf2txtWDs6URMBHKRmJwt_oerv7uh3PmcQUwwX8GlMSJuTOXCjpOozEU.png","datePublished":"2021-01-13T06:25:38+00:00","dateModified":"2021-01-27T10:10:18+00:00","breadcrumb":{"@id":"https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/#primaryimage","url":"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2022\/11\/Lg1oOJ2MoN_uG67IgfF_8p8gVxbkqk8da1PoLClQimWnEfBo7xpQ-YmTkKv9E0rttaBd7LAd0BKHi7PVf2txtWDs6URMBHKRmJwt_oerv7uh3PmcQUwwX8GlMSJuTOXCjpOozEU.png","contentUrl":"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2022\/11\/Lg1oOJ2MoN_uG67IgfF_8p8gVxbkqk8da1PoLClQimWnEfBo7xpQ-YmTkKv9E0rttaBd7LAd0BKHi7PVf2txtWDs6URMBHKRmJwt_oerv7uh3PmcQUwwX8GlMSJuTOXCjpOozEU.png","width":1600,"height":476},{"@type":"BreadcrumbList","@id":"https:\/\/www.syfe.com\/magazine\/guide_article\/how-much-money-do-you-need-to-start-investing\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.syfe.com\/magazine\/"},{"@type":"ListItem","position":2,"name":"How Much Money Do You Need To Start Investing?"}]},{"@type":"WebSite","@id":"https:\/\/www.syfe.com\/magazine\/#website","url":"https:\/\/www.syfe.com\/magazine\/","name":"Connect","description":"Helping you take charge of your financial future","publisher":{"@id":"https:\/\/www.syfe.com\/magazine\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.syfe.com\/magazine\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.syfe.com\/magazine\/#organization","name":"Syfe Pte Ltd","url":"https:\/\/www.syfe.com\/magazine\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.syfe.com\/magazine\/#\/schema\/logo\/image\/","url":"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2019\/05\/logo_black.png","contentUrl":"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2019\/05\/logo_black.png","width":550,"height":240,"caption":"Syfe Pte Ltd"},"image":{"@id":"https:\/\/www.syfe.com\/magazine\/#\/schema\/logo\/image\/"}}]}},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.syfe.com\/magazine\/wp-json\/wp\/v2\/guide_articles\/2491","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.syfe.com\/magazine\/wp-json\/wp\/v2\/guide_articles"}],"about":[{"href":"https:\/\/www.syfe.com\/magazine\/wp-json\/wp\/v2\/types\/guide_article"}],"wp:attachment":[{"href":"https:\/\/www.syfe.com\/magazine\/wp-json\/wp\/v2\/media?parent=2491"}],"wp:term":[{"taxonomy":"guide","embeddable":true,"href":"https:\/\/www.syfe.com\/magazine\/wp-json\/wp\/v2\/guide?post=2491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}