How to Start Investing With Little Money

How to start investing with little money

If investing is an important part of wealth-building, there should be more people doing it. Right?

If you look at this poll by Gallup, you’ll see that stock ownership in the US has declined. In Canada, it’s almost the same thing, with many Canadians admitting to not having an investment account.

If you’re wondering why it might be because many people think they need a lot of money to start investing. Some folks also think they have to have specific training or educational background to make smart investments.

In fact, investing with little money is possible. And here are some of the ways to do it.

Investing with Little Money Through Saving

What we want you to understand is saving money and investing it are closely related concepts. You have to have some money saved up to invest.

An easy way to do this is through the piggy bank or cookie jar approach. Find someplace safe to save money every week. It could be as little as $10.

The electronic equivalent of this is an online savings account. Once you have a small amount of savings, you can start investing.

You can let your money stay in the savings account and earn a small interest. Of course, the downside here is this won’t yield much except for a bit of interest on your money. But if you use it as a vehicle to build up cash, you can use this for more exciting investments later on.

Consider Micro-Investing

There are apps or platforms which will help you do this. And while micro-investing seems like too technical a concept, it’s really not.

It’s the online equivalent of gathering all your spare change, putting it in a jar, and bringing that jar to the bank. With aย micro-investing platform, you link your debit card. Every time you make a purchase, the difference from that purchase is deposited into an investment account.

Over time, this will build your investment balance. After all, your purchases and those micro-investments can add up fast.

Get Help from a Robo-advisor

Robo-advisors use automated intelligence to make investments on your behalf. Of course, using one isn’t free. But you’ll be happy to know the fees aren’t too expensive. If you don’t want to bother learning how to do it yourself (it is easy investing in index funds though!), then this could be an option.

You can even start investing with less than $100.

Ready to Start Investing?

All it takes for anyone to get started with investing is a change of mindset. You have to believe that investing with little money is possible.

It’s not an overnight process. Saving or investing involves building good financial habits over time. If it means making sacrifices to get to your goal, you just have to commit to it and the process gets easier.

For more investing advice, feel free to browse the blog. If you have questions, you can always send me an email.

9 comments

9 comments

FinanceFreedom.eu September 22, 2019 - 10:56

I started investing with only 10โ‚ฌ … Now my investment portfolio is over 30k.

Reply
Financial Nordic September 22, 2019 - 09:46

Investing should be seen as a regular activity that is done every month. You don’t even have to think about it when you automate the process ๐Ÿ™‚ I’ve automated my investments 4-5 years ago, and I check my investments maybe once per month if not even that ๐Ÿ™‚

– FInancial Nordic

Reply
Carl Jensen September 22, 2019 - 20:41

I agree – investing should be taught in school ๐Ÿ™‚ I also automate my investments so I spend 5 minutes on it every month, but I do like to check the ups and downs often.

Reply
Omar September 19, 2019 - 21:33

Hi Carl !
Do you know a Micro-Investing app or platform that could be linked with an account in โ‚ฌ?
Thanks ๐Ÿ™‚

Reply
Carl Jensen September 22, 2019 - 20:41

Hi Omar,

I haven’t tried one myself, but I heard about this one a while back: https://limitless.app/ ๐Ÿ™‚

/Carl

Reply
Nick @ TotalBalance September 26, 2019 - 12:27

Revolut just released trading with american stocks – it’s free of charge, if you hold a metal card (and you can buy micro-shares). I haven’t used it though, so I don’t know if it’s any good. But it seems fairly simple ๐Ÿ™‚

https://blog.revolut.com/trading-revolut/

Reply
Carl Jensen September 26, 2019 - 20:03

Now that’s interesting! Thanks for the info. I guess you still have lagerbeskatning, right?

Reply
Nick @ TotalBalance September 27, 2019 - 18:37

Lagerbeskatning is only for ETFs – and I don’t think they have those on Revolut yet..

Reply
Carl Jensen September 27, 2019 - 20:14

Ah, I thought they provided ETFs too – I don’t invest in single stocks you know ๐Ÿ˜‰

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