How Much Money Should You Invest?

When it comes to how much money you should invest, it really comes down to your goals and your resources.

How much money do you need to start investing? A good minimum to get started right would be $200 — $1,000, but there’s really no lower limit to the amount of money needed to start investing in stocks. 

Our CEO’s initial capital was a shy $2,000, which he had earned from selling ice cream all summer. Since he started investing when he was 14 he didn’t really need the money and saved most of his income. He could also apply more risk to his portfolio, as he didn’t care if he lost any of his money. After that, he continued to save most of his income and put it into the market.

That said, there are three factors that set a natural minimum for how little money you need to start investing. Broadly speaking, your minimum amount of money should enable you to do the following three things:

• Purchase a single share of stock.
• Properly diversify your portfolio.
• Protect your gains from commissions.

Tap Next to take a closer look at each of these considerations and see how you can benefit from investing even with a small amount of money to start with.