Investing even very little amounts can have big rewards in the future. Here are 3 simple ways you can start investing with small money today.
1. Try investing in a cookie jar
Saving money and investing it are closely associated. In order to invest money, you should first learn how to save.
If you’ve never tried saving before, you can start by saving just $10 a week. That does not look like a lot, but in 1 year it can save you $500.
Try to put $10 into a shoebox, small safe or even a cookie jar. It may sound funny, but this is really the first step. Practice yourself on living on a little bit less than you earn, and stash the savings away in a safe place.
2. Search online and try roboadvisor
Roboadvisors were constructed to make money investing as easy and accessible as possible. Setting up is very easy and there is no required investment experience.
3. Put your money in low-initial-investment mutual funds
The problem with mutual funds is most of mutual fund companies require initial minimum investments of between $500 and $5,000. If it’s your first time to invest with little money, those minimum investments can be out of reach. However, some mutual fund companies will disregard the account minimums if you agree to have monthly investments automatically of between $50 and $100.