For many, the words “investment” embody images of men in suits, monitoring the exchange of millions of dollars on a stock ticker.
I’m here to tell you: You don’t have to be the Wolf of Wall Street to start investing. If you are more than a mouse on Main Street this is fine. Even if you only have a few dollars, your money will increase with compound interest.
Here are six easy ways to get there:
Try the Cookie Jar Approach
Saving money and investing it is closely linked. To invest money, you must first save something. It will take much less time than you think, and you can do it in very small steps.
If you have never been a saver, you can start by applying only $ 10 per week. This may not sound like a lot, but over the course of a year, it exceeds $ 500.
A Robo-Advisor Invests Your Money For You
Robo-advisors were created to make investing simple and accessible. No prior investment experience is required and set-up is easy. Let their automated intelligence track your investment in the background, and pay a reduced fee in the process.
Take Your First Step in the Real Estate Market
It is not necessary to be very rich in real estate investment. There are many options for real estate crowdfunding and although it may look like you’re looking at something – it can actually be a tricky investment.
With Foundry’s easy to use online, all you need is an initial investment of $ 500. So if you are a non-registered investor, you can buy a property without paying those huge fees which in the end being a break-breaker if you want to start dubbing into real estate via stock trading course. By managing its own portfolio, the fee comes in at just 1% and Fundraise always guarantees 90 days of satisfaction.
Log into your employer’s retirement plan
If you are on a tight budget, the simple step of enrollment in your 401 (k) or other employer retirement plan may be beyond your reach. But there is a way that you can start investing in an employer-sponsored retirement plan with funds that are so small that you haven’t even noticed them.
For example, plan to invest only 1 percent of your salary in an employer plan.
You probably don’t even remember that small contribution, but the thing that makes it even easier is that the tax deduction you get will make the contribution even smaller.
Put your money in low-initial-investment mutual funds
Mutual funds are investment securities that allow you to invest in a portfolio of stocks and bonds with a single transaction, making them perfect for new investors.
This hassle many mutual fund companies require a minimum investment of between $ 500 and $ 5,000. If you are a first-time investor with little money, they may be out of the minimum reach. If you agree to an automatic monthly investment of between $ 50 and $ 100, some mutual fund companies will waive the account minimum amount.
Protect it with Treasury Securities
Many small investors do not begin their investment journey with US Treasury Securities, but you can. You will never get rich with these securities, but it is an excellent place to park your money – and earn some interest – until you are ready to move into a high risk / high return investment.
Treasury securities, also known as savings bonds, are easy to buy through the US Treasury’s bond portal Treasury Direct. There you can buy fixed-income US government securities in denominations anywhere from 30 days to 30 years with maturities of less than $ 100.
There are plenty of ways to start investing with little money, with many online and app-based platforms making it easier than ever. You just have to start somewhere. Once you do this, it will become easier over time, and your future self will love you for it.
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