Ways To Start Investing With Little Money

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While some consider that the only way of generating a large amount of money is by investing a big capital, they are not always right. These days everyone can invest if they are smart enough and know how to cut down some costs. To be able to invest, they need to solve the problem of limited costs. Making small changes in their lifestyle is not impossible, but necessary in this case. Most people are not aware of the fact that saving money and investing are closely related.

Thus, in order to be able to invest, one has to know how to save. Developing good habits is the core element of building wealth. Besides that, one has to learn how to be smart about their investment options and choose the best ones for them. They can either opt for the traditional way of investing and managing their own money or counting on automated investment platforms.

Investing small amount of money is different depending on your situation. In the investment space, $10,000 is not a lot of money. But for the average Joe, it’s a fair chunk of cash! That being said, you can find some of the best ways to invest $10k here.

Invest Your Spare Change

The easiest way of investing your spare change is by counting on a platform that does that for you. Each time you go out shopping it monitors your purchases and invests your spare change. The great advantage of this option is that there is no minimum fee to open a new account. Your money is invested automatically even if you have no clue about how to make investments. At the same time, you don’t need a lot of money to do it. As long as you have enough money to go to a restaurant, you are all set.

Try Stock Investing

If you prefer a more traditional way of investing your savings, then you need to try a free broker. The great advantage is that this online brokerage works great on any smartphone. In other words, it’s like an online bank that simply manages your stocks. There are a lot of options available out there, so you need to make sure to pick the best one for you. Read the reviews and try to find as much information as you can before making any investments.

Automated Investment Platforms

Robo-advisors are one of the newest investment platforms out there. They are cheap and relatively simple to use. All you need to do is fill out a questionnaire and allow the investment firm take care of the rest. Thanks to their professional algorithms they can invest your capital in low-cost funds that are optimized for you. You can read Betterment reviews online and find out more about the services they are offering. In short, the main advantages are goal-based investing, top-notch financial tools and tax-loss harvesting.

Mutual Funds Investment

Investing in mutual funds has a lot of advantages. It is perfect for first-time investors because fund companies don’t require a lot of capital to invest. Mutual funds allow you to invest in a portfolio of stocks and bonds with just one transaction. It is a convenient and efficient tool that acquits you from the habitual hassle. The investment can be done online, and it has a lot of advantages. Some of the most popular ones include easy customer on-boarding, financial transactions and online chat for a convenient investment process.

There are a lot of ways of starting investing even with little money. Some are based online, which makes the whole process easier than ever. Thus, to make it work you need to start somewhere.

11 thoughts on “Ways To Start Investing With Little Money”

  1. Thanks for this post. I think this is really important since most people believe they need a lot of money to invest and they get discouraged. Even 100 USD per month *intelligently* invested will make a difference in the long run! I never considered investing my spare change like this. I’m more old fashion and keep a big jar of spare change at home and deposit in my bank every now and then. But since I’m using my credit card more and more, I should consider this.
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    • Hi TPS,

      I agree. For many, the thought of investing on their own may seem daunting and then the thought always comes up about not having enough cash to invest. The reality is that investing today does not require huge sums of cash to start. With so many low cost and fee free ways to invest one can start with a very small amount and build up a portfolio over time. As you stated, over the long run it can make a huge difference. Thank you for stopping by and sharing your thoughts.

    • Hi DD,

      So true. It’s easy to have an excuse for not investing but I think that these days it’s a wrong attitude to have. With so many options to invest and save for little or no fees even, everyone can start building up a portfolio bit by bit. No more excuses! As always, I appreciate your comment.

    • Hi dividendgeek,

      The reality is that there are so many different ways to invest small amounts of cash these days that there is no excuse for everyone to not start investing. It can be via funds, individual stocks, whole units or fractional, we have many ways to build our future wealth today. Thank you for sharing your thoughts.

    • Hi Matty,

      Thanks for sharing your investing methods. I have heard very good things about Robinhood and Acorns as well. I know many in the DGI community utilize both for their savings and dividend growth portfolios. Thanks for commenting.

  2. Another way to start investing with a small amount of money is to sign up with something like ShareBuilder through ING Direct. For as little as $4 you can create an automatic investment plan that will help you start building your portfolio.

    • Hi AB,

      That’s my plan. I have been with Sharebuilder for many years and while I’m sad to see them being bought out by E-Trade I can say that is has been a great way for me to build up my dividend income portfolio.


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