With a new year first kicking off, now’s the time for a lot of people to make financial resolutions. And one of yours may be to finally start investing. Investing your money is a great way to grow wealth, but if you’re a total newbie, the process may seem overwhelming. Here’s how to tackle it in the coming year.
It’s a good idea to commit to investing a specific amount every month as your budget allows for, so to that end, take a look at your existing expenses and see how much cash you can reasonably afford to part with. That way, you can arrange for your money to get invested automatically so you’re not tempted to spend it on other things.
If, for example, you earn $4,000 a month, of which $3,000 goes toward essentials like food and rent, you’ll be left with $1,000 to work with. Of that, you’ll probably want some money for leisure and discretionary spending, so you may decide to invest $500 and keep the remaining $500 for yourself.