How Much to Invest?

Investing can be an effective way to build long-term wealth. But you still need to choose how much to invest. First, it’s important to know that investing is no longer just for people with large budgets. You can get started with small amounts, as long as you find a budgeting strategy that works for you. In this article, we’ll show you how.

Allocate a budget :money_with_wings:

Choosing how much to invest depends entirely on your personal circumstances and budget. One of the most effective methods is the famous rule of 50-30-20, made famous by US senator Elizabeth Warren and her daughter Amelia Warren in a book dedicated to budgeting. This method involves dividing your monthly income into three categories:

  • 50% for your daily needs (rent and utilities, food, healthcare, school fees, insurance etc.)

  • 30% for your hobbies.

  • 20% for your savings, repaying credit cards and investments.

For example, if you have €2,000 monthly income, this means €400 per month for investments. Of course, we also recommend that you keep some aside for an emergency savings pot or pay off any debt.

Read more about how to pick the right investments.

How to allocate your money :thinking:

Having a budget like this means you can also be flexible. If you spend less on your hobbies one month, you can increase your investment budget. Similarly, if you suddenly need money for an emergency, you can invest less that month. You can also readjust the amount of money you allocate within your portfolio. For example, you might invest more in stocks and less in ETFs one month, depending on your level of risk. This can help you manage fluctuations in your portfolio.

You can also benefit from investing in fractional shares or ETFs. This allows you to invest small amounts into stocks that are traditionally quite expensive, such as Tesla or Apple. Now you can diversify your portfolio even with expensive shares. Fractional shares are now available in the BUX Zero Investment Plan, which brings us to our next point!

By the way, want to know more about fractional shares? Read this article.

Use the BUX Zero Investment Plan :bux_logo1:

The monthly Investment Plan allows you to set a budget and invest a fixed amount each month into your favourite stocks and ETFs. Thanks to the logic of compound interest and the growth of the markets, this can be a great way to build wealth over time. You can even reinvest the gains to capitalise even more!

With BUX Zero, you can create an Investment Plan with whole or fractional shares, starting with as little as €10. It’s an effective way to diversify your portfolio and let your gains build over time. By allocating your investments to different assets, you distribute them equally over time.

Check out our guide on setting up an Investment Plan here.

Test your knowledge :test_tube:

Which of the following is not a feature of the Investment Plan?

  • It allows for better diversification
  • You can invest small amounts
  • You must buy full shares
  • It allows you to rebalance your portfolio

0 voters

Investing your money is one of the most reliable ways to create wealth over time. Through this series of articles, we wanted to give you the essential tools to get started with investing. Ready to take your first steps? Download the app, fund your account and discover your free share!

All views, opinions, and analyses in this article should not be read as personal investment advice and individual investors should make their own decisions or seek independent advice. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.

Trading in digital currencies involves risks. You can lose your investment.

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Thank you @Cornel!! :pray:

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I dont know if this looks the same for everyone, but its really hard to read the text with the background, this is how it looks on my screen:

my text is white, the background is very light teal and yellow, and the logo BUX and Investment kit have some white in it, making the hard to read, or sometimes almost invisible when it overlaps with the other white. :sweat_smile:


Thanks for the feedback @Mixer I will adjust it :smiley: Mobile and Web look different from each other (mobile looks better IMO).

So, keep an eye out for some quality the improvements :stuck_out_tongue:

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