Finance:
Easy Ways To Start Investing With Little Money

In this article, I want to take it up an in-depth of which is to say how can you invest when you have more than a few dollars, but not the thousands that traditional investment opportunities usually require?

Easy Ways To Start Investing With Little Money

Investing even very small amounts can reap big returns. Here are 5 ways you can start investing with little money today

Many people do not think about investing because they think that they need a lot of money—thousands of dollars! - to start investing. This just isn’t true. You can start investing for as little as $50 per month.

The key to be wealthy is developing good habits—like regularly save money every month. If you make investing a habit now, you’ll be in a much stronger financial position down the road.

Don’t believe me? Here are five ways you can start investing with very little money:

Try the cookie jar approach

Saving money and investing it are closely interconnected. In order to invest money, you first have to save some up. That will take a lot less time than you think, and you can do it in very small steps.

If you’ve never been a saver, you can start by putting away just $10 per week. That may not seem like a lot, but over the course of a year it comes to over $500.

American Express National Bank currently offers a strong 2.10% Annual Percentage Yield on their online savings account. There is no minimum deposit amount required and no monthly maintenance fees associated with a Personal Savings Account from American Express so the yield is earned on all balances.

The brand also offers high-yield CD’s if you’re in the market for a place to park your cash and are in need of high-interest rates.

Try putting $10 into an envelope, shoebox, a small safe, or even that legendary bank of first resort, the cookie jar. Though this may sound silly, it’s often a necessary first step. Get yourself into the habit of living on a little bit less than you earn, and stash the savings away in a safe place.

The electronic equivalent of the cookie jar is the online savings account; it’s separate from your checking account. The money can be withdrawn in two business days if you need it, but it’s not linked to your debit card. Then when the stash is large enough, you can take it out and move it into some actual investment vehicles.

Start with small amounts of money, and then increase as you get more comfortable with the process. It may be a matter of deciding not to go to McDonald’s or passing on the movies, and putting that money into the cookie jar instead.

Prefer that money to be invested right away? Acorns is an app that rounds up your credit and debit card purchases and invests the difference. It’s not fancy, but it’s a start. And for people who’ve never been savers, getting that start is all the more important.

Roboadvisor_Little Money

Let a robo-advisor invest your money for you

Robo-advisors were created to make investing as simple and accessible as possible. No prior investment experience is required and set-up is easy. Let their automated intelligence track your investments in the background, and pay lower fees in the process.

Wealthfront

One great roboadvisor that I recommend to first-time investors is Wealthfront.

Their fees are reasonable at 0.25%, but the kicker is that you can get your first $5,000 managed free (specific to MU30 readers).

So if you’re looking to start investing with little money, Wealthfront could be the way to go. You will need $500 to get started though with Wealthfront so keep that in mind.

M1 Finance

If you don’t have that $500 starting balance, there are still great options for M1 Finance you in the Robo advising space.

M1 Finance charges no commissions or management fees, and their minimum starting balance is just $100.

You can choose from one of their pre-made diversified portfolios or customize your own by purchasing stocks and ETFs through their platform. The user-interface is super easy to use.

Betterment

If you’re starting out with less than $100, you may want to consider betterment, which has no minimum starting balance whatsoever.

Like M1, it’s also great for beginners as it provides a super simple platform and a hassle-free approach to investing.

Swell

If it’s important for you to invest in a socially responsible way, try Swell Investing.

They also have a low minimum (just $50) and never invest in industries like oil, tobacco, weapons, or private prisons.

Instead they have tailor-made portfolios for renewables, green tech, disease eradication, clean water and more.

  Muhammad Idrees   Thursday, 04 Jul 2019   51 Views

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