r/investing
How to deal with small amounts of money
User seeks advice on allocating small monthly savings (1-2k EUR) between broad ETFs for steady growth or individual stocks for higher potential returns.
I would like to invest but I only have small amounts (1-2k euros a month) that I can put it. I have been wondering what is a good approach in my case - put it all in a broad ETF of stocks as it has generally returned 8% long term adjusted for inflation or pick stocks. The former will grow always, unless capitalism fails, but generally slowly. The latter is riskier but it could outperform. The question is does it make sense to put the money in one diversified place or try to squeeze that outperformance because my money to invest is not so much that compounding will do its magic in any foreseeable future.
Would appreciate your input.
2k euros invested a month puts you into the top 1% of the world buddy
Everyone I see on yt and reddit show portfolios of 100k etc. I am only starting and I have no guarantee I can sustain this forever.
Investing 2k a month will get you to 100k much quicker than you realise
Depends for how long I can keep it up. Could be 5 months or 15 yrs
You’re kidding right? Top 1% global income is $250k, top 1% savings rate is $7-8k a month.
https://wir2026.wid.world/insight/global-economic-inequity/
A 2000 euro savings rate is NOWHERE near 1%.
yep
2k euros a month saved is pretty damn high
Its 1k to 2k though, not always 2k thats the max and I don’t how for how long I will be able to sustain it.
Most fund managers underperform the benchmarks. Unless you think think you can do better, a global tracker is a wise choice.