How Much Do You Need to Start Investing?

You don't need a lot to start investing, many options allow you to begin with a small amount. While investments like property may need a larger deposit, shares can be bought with much less.

There’s no set rule for how much you should invest, but different platforms or products may have minimum requirements.

Here are a few things to consider before you start:

Are You Financially Ready?

Use this checklist to help you decide:

-          Are you earning more than you're spending?

-          Do you have savings you won’t need for a while?

-          Have you budgeted to see how much you can regularly invest?

-          Do you understand the potential costs and risks?

-          Is your debt under control?

Patience and consistency are often more important than having a large starting amount.

Costs and Taxes 

All investments come with some costs, like transaction fees or commissions, which can affect your returns. For example, buying or selling property involves fees like agent commissions and stamp duty, while buying and selling shares involves brokerage fees.

Additionally, money you make through investing may be subject to tax, which can also decrease your real rate of return.