How To Calculate The Money You Have To Invest
|Business : Investing|
Investing money and saving are often seen as the same thing, however investing is a specific form of saving money, in that you spend it on things that should hopefully return more money to you long term.
So you may invest in stocks and shares, for instance.
If you are going to be doing any form of risky investment - that is where there is no guarantee you will get your money back (the risk of banks going bust on ordinary savings is so low and many governments cover at least a portion of savings even if they do that the risk is low here).
For risky investments, people tend to suggest that a suitable figure to invest would be around 10% of the money that you have.
This means that if you have £50,000 in total then you should not put more than £5,000 into it.
Now those that love risk and want risk may decide to put more, but in terms of calculating how much money you have to invest that's the limit, most suggest around 10% of your net assets.
Questions about investing: