Kathy Longo was recently interviewed by MoneyGeek for a piece they did on how an individual can start investing and saving their money.
How much should beginners invest in stocks and bonds? And when is a good time to increase those investments?
Studies have consistently shown that saving 10% to 15% of annual income will frequently create a safe nest egg. That is a big leap for beginners, so we recommend starting with 3% of income to invest in stocks and bonds. Ideally, people will revisit how much they are investing on an annual basis to determine if adding another 1% can still work for your budget. In addition, it’s a good idea to increase the level of your investment whenever you get a raise or increase in annual income.