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When is the Right Time to Start Investing Your Money?

by Caldwell Trust

Investing your money wisely is a key step towards becoming financially independent because you are always contributing to your investment portfolio, allowing you to accumulate wealth over time. But, many are hesitant to begin investing whether it’s not understanding how to start, being worried about losing money, or wondering if they have enough money to make a worthwhile investment.

So, the question remains: When is the right time to invest your money?


When Should You Start Investing Your Money?

It is always advisable to start investing as soon as you have extra money at your disposal. It makes no sense to start investing if you have no savings around. First, concentrate on building your emergency fund, paying debts, saving for a big purchase, etc. 

In other words, focus on securing your immediate future first before concentrating on investing. Once you do that, you will free up more cash for investing and feel more comfortable doing so.

Related Content: 5 Questions to Ask Before Hiring an Investment Advisor

Factors to Consider Before Investing


  • Reward vs. Risk: All kinds of investments involve a certain degree of risk. For that reason, calculate the risk and stick to a risk/reward ratio apt for your risk appetite.
  • Investment Strategy: Before investing, it is crucial to have a plan. It will help put into perspective your investment goals, when and how to achieve them.
  • Where to Invest: Bonds, stocks, residential property, etc. Be sure where you want to invest your money.
  • Your Age: There are specific financial milestones to achieve throughout your life (in your 20s, 30s, etc.). Ensure you know the stage of your life you are investing in.
  • Emergency Fund: Unexpected expenses can come anytime. An emergency fund will help you not interfere with your investment in case of a need.


Beginner Options for Investing 

There are many investment options to consider when preparing to invest. Researching before diving in is crucial regardless of what option you pick. Below are a few of the investment vehicles you can consider as a beginner.


  • Online Brokerage Accounts: You got full control over what you sell, buy, and when to do so.
  • Bonds: Purchasing a bond allows you to give a government agency or corporation a loan in exchange for interest on your bond investment.
  • Stocks: You automatically gain small ownership stakes in publicly traded companies when you invest in stocks. Any rise in the value of each share in your possession automatically increases your ownership stake in value.


Understanding each investment option's unique benefits can help you choose one that will earn you handsome returns. This implies you need to thoroughly research if you don't want to regret deciding without the necessary information.

If you feel researching is too much work for you, consider seeking advice from individuals well-versed with investing. Working with an investment manager at this time is highly recommendable if you are looking to make the most of your money. He or she will advise on what to do with your money.

More Investment Tips


  • Start early. You have a higher risk-taking ability when age is on your side.
  • Don't put all your eggs in one basket. Diversify across a variety of asset classes such as bonds, stocks, etc.
  • Automate your investment. Set aside a specific amount to be automatically invested each month
  • Set your goals
  • Learn about investing. It will help you make coherent decisions.
  • Use goals to determine your time horizon.
  • Don't be afraid to ask for help any time you need support.


Knowing when to invest your money is a huge plus toward achieving both short and long-term goals. Need help to start investing your money? Contact us today to speak with one of our financial advisors about what you can do to grow your wealth.

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