How to Start Investing with Little Money
Here’s the thing: you don’t need to have a boatload of money to start investing. Even Warren Buffett started small and invested their way to billions. You can do it too, and there are numerous ways you can start investing with small amounts yet reap big returns.
Here are Seven Ways to Invest with Small Amounts
#1 START A RETIREMENT FUND
Building a retirement fund is a great place to start because this can help you grow your money in the long run, thanks to compound interest. And the sooner you begin saving towards your retirement; the better off you will be in the future. You can have the money taken out of your paycheck each month, and deposited directly into your retirement account.
#2 OPEN A SAVINGS ACCOUNT
Yes, a savings account doesn’t offer big returns but it is still a crucial personal finance tool for safeguarding your financial future. In fact, a savings account is a must-have in your investment portfolio. What’s more, you can open as many savings accounts as you want.
#3 START A SMALL BUSINESS
In the age of internet and insta-everything, business opportunities are dime a dozen online. With a little entrepreneurial spirit, you can start a blog, affiliate marketing or even launch an Etsy shop. Start small, be persistent, and you’ll turn it a steady income-earner.
#4 INVEST IN YOURSELF
An investment doesn’t have to be in terms of stocks, savings, bonds, and whatnot. You can invest the little you have to learn a new skill, develop your talents or enhance your current abilities. You can take online courses, attend a seminar or get a certification to boost your career.
#5 TRY MICRO-INVESTMENTS
When it comes to micro-investments, you don’t have to invest oodles of money to start reaping the benefits. Ingenious apps like Stash and Acorns are game-changers in the world of micro-investing, allowing small-time investors like you to invest as little as $5 without incurring any transaction fees.
#6 START A SIDE HUSTLE
A side hustle doesn’t have to be something fancy. You can start mowing lawns or designing logos at your free time. You can use the little you have to purchase what’s needed.
#7 TRY P2P LENDING
In the past 5 years or so, peer-to-peer lending has gained incredible traction. Sites like Lending Tree and Prosper give you an opportunity to lend as little as $25 to those looking for small loans. You’ll get something in return, as well as change someone’s life while at it. What a win-win!