If you’ve ever asked yourself, “How much should you invest?”—same. I used to spiral down Google rabbit holes trying to find the right number. Some people said 5%. Others pushed for 40% as if it were nothing. It was confusing as hell.
Eventually, I gave up on finding the perfect answer and just picked something that felt doable. That number was 10%.
And honestly? That small, consistent move changed everything.
The start of my investing journey
When I first started investing, I had no clue. I jumped in without a plan, throwing money at hot stocks and pulling back when the market dipped. I wasn’t investing—I was reacting.
Then I found forex. At first, it felt like a rush—charts, leverage, quick trades. I thought I’d cracked the code. But the truth? I was out of my depth. I had no real strategy, and I let emotion steer the wheel. High leverage and knee-jerk reactions led to some painful losses. It wasn’t just risky—it was reckless.
Looking back, it’s obvious why things didn’t work. I wasn’t consistent. My portfolio had no direction. And the worst part? My emotions were calling the shots. I’d invest more when I was excited, pull back when I was scared, and second-guess every decision.
Then, I came back to the main question: “How much should you invest to make real progress?” I made a simple change: I committed to investing 10% of my monthly income every month, regardless of the circumstances. Not when I felt like it. Not when the markets looked perfect. Just a flat 10%, automated and untouchable.
That one decision brought structure to the chaos. And it was the first real step toward building actual wealth—not chasing it.
Why 10% worked for me
You’re probably wondering, “Why 10%?” Here’s why that number worked for me—and might work for you too.
- It was manageable. I could still pay my bills, go out occasionally, and not feel broke. Cutting back on a few non-essentials made room for investing without feeling deprived.
- It felt meaningful. It was enough to see progress. Small monthly contributions added up, especially with compound growth doing its thing in the background.
- It became a habit. Automating that 10% made it feel effortless. I didn’t have to think about it—I just watched it build.
The mindset shift
But over time, this mindset changed. I began to view invested money as future income, rather than lost spending power. Every dollar I invested was working harder and wasn’t lost.
That’s the mental game of investing: seeing your investment contributions as seeds, not costs. Seeing the “price tag” of the S&P 500 ETF as an investment and not as an expense.
A proper plan takes the guesswork out of how much should you invest each month. It turns investing into a routine, rather than a bill payment.
Investing Money vs. Saving It: What to Know
Here’s another key question I had early on: how much should you invest vs. save?
Here’s how I approached it:
- Save it if you need the money in the next 12 months. Emergency fund, travel, short-term goals—keep that cash liquid and easily accessible.
- Invest it if you won’t touch it for 5+ years. That’s where compounding and true growth work their magic.
Investing builds long-term wealth. Saving protects short-term stability. Knowing how much to put into each bucket is part of figuring out how much you should invest based on your financial stage and goals.
My simple investing strategy
So by investing 10% of my monthly income, I stuck to dollar-cost averaging. That just means I invested the same amount each month, regardless of market highs or lows. It removed emotion from the equation and instilled discipline.
Throughout the years, I have also diversified my investments across stocks, ETFs, real estate, cryptocurrency, and bonds. That mix keeps things balanced and helps smooth out the rough patches. However, you don’t need to spread across multiple assets at this time. Pick one asset class that you feel comfortable with and start building your investment habit.
No single win or loss can throw me off anymore—and that peace of mind is worth a lot.
So, how much should you invest?
Here’s the truth: you should invest as much as you can, consistently. For me, that was 10%. Maybe for you, it’s more. Maybe it’s less. The number matters less than the habit.
Start with what’s realistic. It could be 2%, 5%, or the full 10%. I suggest you look at your expenses and find ways to minimise them. The amount that you cut out can be used for initial investing.
The number doesn’t matter. The important thing is that you start.
Because the biggest mistake isn’t investing too little—it’s not investing at all.
I’m a full-time marketer turned personal finance obsessive. I started this blog after realising I was earning well, but my money wasn’t doing much. Now, I share practical, no-fluff strategies to grow wealth while managing a demanding career—without turning money management into a second job.
