Investing With Little Money: 5 Ways to Get Started
Wondering if you can start investing with little money?
You don’t need to be a millionaire to reap big investment rewards. Even with little savings, you can try various ways to grow your money.
We have prepared this guide to help you start investing as a beginner.
5 Ways to Start Investing with Little Money
Follow the tips below to become a smart investor.
1. Save Money Using the Cookie Jar Approach
To begin investing, you need to save some money. Start by stashing $10 to $15 away in a cookie jar every week. Alternatively, you can put your savings in an online savings account.
You may increase this amount as you get into the habit of saving money so that you can move it into an investment vehicle ASAP.
2. Get Help from a Robo Advisor
Robo advisors can take the guesswork out of investing. They ask some questions to determine your goals, risk tolerance, and expectations to help you create a low-cost portfolio of bonds and stocks. They also use smart rebalancing techniques to optimize your portfolio for taxes.
Robo advisors usually charge an annual fee of up to $500 to start investing with little money. In return, they offer automated investment plans to increase your balance.
3. Enter the Stock Market
Today, you can start investing in the stock market with just a dollar without having to pay trade commissions. You should consider investing in companies with partial shares, as it allows you to diversify your portfolio while saving money.
4. Put Your Money in Mutual Funds
Investing in low-initial-investment mutual funds is an excellent idea if you want to start small. Companies usually require you to automate the monthly payments between $50 and $100. You can do this through payroll savings. Discuss how to set it up with your human resources department.
5. Enroll in Employer’s Retirement Plan
If you’re on a tight budget, you can invest 1% of your monthly income into your employer’s retirement plan. See if the company offers a matching contribution.
These are only a few ways you can start investing with little money. The key is to just start somewhere. No matter how tight your budget is right now, it’ll get easier with time and you’ll be happy you took the leap.