How To Determine How Much Money To Invest

Many beginning investors believe that they should invest all of their savings into the stock market, mutual funds or other vehicles. This isn't necessarily true. To determine <A HREF="http://www.savingcashtips.com/blog/learn-to-invest-money/" TARGET="_blank">how to invest</A>, you must first determine how much you actually can afford to invest, and what your financial goals are.<BR>

First, figure out how much money you are currently able afford to invest. Do you have savings that you can use? If so, that's a great start! However, you don't want to cut yourself short when you tie your money up in an investment. What was your original savings goal?
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You should always strive to first put three to six months of living expenses in a readily accessible <B>savings account</B> - don't invest that money in the markets! Be sure not to invest any money that you may need to lay your hands on in a hurry in the future.
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Start by determining how much of your savings you want to keep in your savings account, and how much is left over that can be used for investments. Unless you have funds from another source, such as an inheritance that you've recently received, this is the starting amount that you currently have to invest.
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