If you’re looking for ways you can start investing with little money, then you are in the right place because I have 6 to share with you today!
When most people start to think about investing, they think about guys on Wall Street or bankers.
Anyone can start investing as long as you have some capital to start out with.
You don’t need a college degree or even know anything about the stock market because there are several ways that you can start investing to have your money work for you instead of against you.
Investing shouldn’t be a scary thing, whether you want to invest for your retirement, the real estate market, or just to make more money it is simpler to do now than a few years ago.
With that said, let’s explore 6 ways that you can invest and grow your money.
1. The Home Piggy Bank Approach
One of the first things that many people do without thinking it is partly investing is saving your money.
If you put just $10 per week aside into some type of savings piggy bank, in one year you can save over $500 in 1 year!
I know it doesn’t seem like much, but this is the traditional way that many people start out investing without knowing that this is what you are doing.
Sure, you don’t earn anything on the money that you set aside, but it is similar.
Another way that many people start out saving money by earning a small yearly earning percentage is by putting it into a savings account that offers an APY.
There are many banks that you can join that offer a savings account where you can stash your money away into that offers a yearly APY of over 1.00%.
You also have options to offer high-yield CDs, money market, and checking accounts to diversify your portfolio with many banks like Citibank and J.P. Morgan Chase for example.
A regular savings account is considered your Piggy Bank when you use it to put money away.
The point is that you have a few options when looking at a bank to help you save some money including a broker that will help trade for you but of course with risk.
2. Join The 401k Retirement Plan That Your Job Offers
One of the things that many people do without even really realizing it contributes a small percentage to their job’s 401k retirement plan.
I mean, there are also many people that realize their company has this option available, but they don’t really see the results of their contribution only after a couple of years when they start seeing their money grow (unless the stocks drop).
With your company’s 401k plan, you can invest 1% of your paycheck which is usually not noticeable and can be raised to a higher percentage when you request it.
Your company’s 401k plan is even available to you when something happens like if you get fired or decide to quit, that is your money and can be taken out or kept in to increase in value.
One of the things that I want to point out is that most 401k plans have some type of early withdrawal penalty so make sure if you decide to take your money out early, find out if there is any small print.
Another thing that I want to point out is that investing in your company’s 401k plan is a tax right-off which makes investing even better using this method.
Another bonus that many companies offer is many companies offer a 401k match or percentage match which can be another bonus that you can look into.
3. Use A Robo-Advisor To Invest Your Money
Robo-Advisor is a simple way to start investing money and have your money work for you by making more money.
Here is a quick breakdown of what Robo-advisors are:
- Robo-advisors (roboadvisors, robo-advisors) are digital platforms that provide automated, algorithm-driven investment services with little to no human supervision.
- Robo-advisors most often automate and optimize passive indexing strategies that follow mean-variance optimization.
- Robo-advisors are often very inexpensive and require very low opening balances so that nearly everybody can benefit from a robo-advisor if they choose.
Choosing a robo-advisor to invest your money is the simplest and hands-free approach to get started with wealth building from your own investment.
There are several choices of companies that you can choose as your robo-advisor that start out with less than a $100 investment.
Of course, those are higher investment options as well.
Each company has different fees, so it would be smart to look into each company for its pros and cons.
4. Real Estate Crowdfunding Investing
Have you heard of real estate crowdfunding investing?
Not many people have and what is what most people that have a “not so great” credit score get started in when they are looking at starting in real estate investing.
There are companies out there that you can join that have options of a minimum of $500 to get started.
The fess usually works out to be around 1% and the best ones offer some type of guarantee like a 90-day satisfaction guarantee.
5. Mutual Funds For Low-Cost Investing
Mutual Funds are another great way for people to get started in investing that will allow you to invest in a portfolio of stocks and bonds with a single transaction.
Mutual Funds are legal investment securities.
The issue that people usually run into first because they stop going forward before researching any further is the minimum investment cost to join.
The minimum investment cost is $500 for many mutual funds companies but many of these companies allow you to get started with $50 and $100 per month as long as you agree to pay a monthly investment toward your Mutual Funds.
Another way that you can get started with Mutual Funds is with a payment plan through your employer, you will have to ask human resources to help you set this up.
Mutual Funds are a great way to get started for new beginners and are also a long-term strategy for making your money work for you to make more money in time.
6. Treasury Securities For A Safe Investment Strategy
The little-known way to invest is called Treasury Securities.
Many people that get started out in their investing journey usually overlook the one strategy that is commonly overlooked is called Treasury Securities.
US Treasury securities are a safe option, but the one drawback is that you are not going to make a ton of money using this strategy.
If you want a higher return on your investment than you are going to look for other options than Treasury Securities.
Treasury Securities are a great place to park your money to earn interest and usually only need a minimum investment of $100 to get started.
You are going to need to park your money for a period of time that ranges from 30 days to 30 years.
Treasury Securities can also be set up with your employer through human resources if you are interested in looking at this option.
If you don’t want to set this up with your employer, then there are companies out there that you can get started with like Treasury Direct for one option.
7. Worthy Bonds for Another Low-Cost Investment Strategy
The last way that I would like to share on how to get started with investing when you have little money is with Worthy Bonds.
Worthy Bonds are fixed interest rate bonds that fund loans for creditworthy US businesses.
All the Worthy Bonds have a term of 36 months, but there are no penalties for taking out any money early.
They also invest the money in companies that only have a greater than a 5% return.
You can buy Worthy Bonds for $10 a bond, and you can buy as many as you want!
The rates are on a fixed rate, so you will know exactly what you are going to earn which is a safe way to invest.
Worthy Bonds are only available to US residents and only deal with US companies.
This is another great way to diversify your portfolio with a low-risk solution, everyone wins with this strategy.
As you can see, there are plenty of options to invest when someone doesn’t have that much money to get started with.
I have shared just 7 different strategies that are a low-cost investment solution that will work for most people, but there are many other options out there as well.
Once you dive in and get started, the process always becomes simpler, and over time, you will be glad you got started!
With that said, I hope you enjoyed my article about 7 interesting ways to invest with little money.
I hope this article offered you some value, if it has, then it will help me out to click on the social share buttons below to share it with others so that people can learn more about a few investing strategies they could use when having little money.
Thank you for your support!