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