How much of your income should you invest? This is a question few people actually know how to answer. Luckily, our guide here will help you invest.
Did you know that the real estate market is set to go up by 4.1% in 2021? This makes it one of the fastest-growing investments you can make.
Investing is one of the best things you can do for your money. Investing can help your money grow and set you up for the future, but how much of your income should you invest?
Keep reading, and we’ll give you some investing tips and discuss a few of the ways to invest.
Why Should You Invest?
An investment grows over time, and that growth can compound on itself. Over the years, you’ll have a much more significant sum of money than you started with.
Investing is a way for you to set up for your future. You want to make sure in retirement or in an emergency you have enough funds to cover yourself.
Think about your goals and determine how much money you’ll need to get to those goals. Do you want to send your children to university or college? Are you interested in a bigger house or want to own real estate in general? Each of these goals will require a different amount.
Your goals are personal to you, and your investments should reflect that.
How Much of Your Income Should You Invest?
If you wonder, “how much should I invest” this will depend on your financial situation.
The typical answer that gets thrown around is 10-15% of your income should go toward investments. If you are able to save more, though, you absolutely should. The 10-15% number is a starting point. Putting more money into your investments will allow you to accumulate a higher ROI (return on investment).
So the answer to, how much of your income should you invest, will depend on the goals you’ve outlined for yourself and when you plan to cash in.
There is more than one single way to invest. You don’t have to only watch numbers go up in a bank account. You can invest in other things too, like real estate, commercial real estate, stocks, bonds, etc.
Real estate is a fantastic way to invest and tends to be recession-proof. Having land or owning a building can help make your money work for you. This is what we call a passive income.
A passive income is a way for you to make money without needing to work for it. Investing in real estate is a great way to do this. Purchasing a building or a business will require some initial investment costs, but after those are taken care of, you can start making a passive income, and you’re closer to a work-free life.
Ready to Explore the Ways to Invest?
Now that you know how much of your income should you invest, you can take these investing tips and turn them into money!
If you want further information on how you can invest in commercial real estate, and how much to invest, contact us! We’d genuinely love to chat with you over email or on the phone about how you can invest in your future.