The first step in how to start an investment club is making sure that you will not have any rogue members in there that want to go their own way or are not interested in investing. All members need to be fully committed to investing and working together as a collective, which leads directly onto step two. When figuring out how to start an investment club, you need to decide how many people will be in your club from the start. Many experts recommend between seven and twelve.

Step three in how to start an investment club is setting your monthly contribution. All members need to agree on this point as it has to be a reasonable amount that everyone can afford. Between $20 and $50 is the ideal amount to start and then you can discuss raising or lowering it at a later date. This discussion should arise in step four – the meeting. You must decide where to hold it and when to hold it. Once a month is usually fine but you need to keep a note of all business discussed at each of them. Determining the frequency of these meetings is step five.

When you hit step six, you have done most of the business involved with how to start an investment club. The majority of work is done so all you have to do now is complete the paperwork. Step six is forming a partnership and filing the right tax and club forms for the authorities, which will of course depend largely on your country of residence. Step seven is setting the investment club rules to make sure that everyone adheres to your philosophy and works together. Finally, step eight is setting up a message board of some sort to keep all members up to date. After all, every member needs to know exactly where their finances stand!

So there you have it – how to start an investment club! It really is that easy but make sure that you do your homework in advance.