First, I would like you to have your game plan in place. Your financial game plan is dedicated to your financial success. Once you have your game plan in place, one in which you and your spouse are ready, willing, and able to follow, then it’s time to talk investing.
Remember, when it comes to investing, it’s really about picking the appropriate investment vehicle to get you to your destination. How far you have to go (your goal) and how much time you have to get there, will determine a suitable vehicle (risk level). Distance and time matter. If, for example, you are planning a trip across the country--retirement goal--there are a variety of ways to get there: you could drive a car, fly on an airplane, take the train, ride the bus or even ride a bike. Factoring in the amount of time you have will rule out some of these options, in route to determining which the best fit is.
As far as how much you should invest, since we’re talking about investing in your primary goals (rooms), the objective--as you may recall--is 15 percent or more of your gross income (before taxes)…the pay yourself first principle! If you’ve been living paycheck to paycheck, this may seem like a monumental task. But, reviewing your budget and getting your priorities straight will help you make headway on increasing your savings rate. And while 15 percent is the target, you can certainly start with less. Some investments will allow you to put away as little as $25 dollars on a monthly basis.