How Much Money Should You Invest in Stocks?
Get started investing with just $5.
When young professionals first start investing in the stock market, there are two types of “how much money” questions that come up:
- How much money do I need to start investing in stocks?
- How much money should I invest in stocks?
These are two very different questions.
“How much money do I need to start investing in stocks?” is about the minimum necessary to get started investing.
Whereas, “How much money should I invest in stocks?” is about how much of your personal savings should you allocate to stock market investing.
Let’s tackle each of them.
How Much Money Do I Need to Start Investing in Stocks?
Technically, there’s no minimum amount of money needed to start investing in stocks. But you probably need at least $200 — $1,000 to really get started right.
Most brokerages have no minimums to open an account and get started buying stocks. So theoretically, you could open an account today with just $1.
That said, there are three factors that set a natural floor on how little money you can start investing with. In general, you…
