July 6, 2023 | Eul Basa

5 Ways To Start Investing With Little Money

Many people are discouraged to start investing because they think they'll need a lot of money to do so. New graduates, part-time workers, and individuals who are generally tight on money might feel like they can't handle an investment with the money they have. But the reality is, investing even small amounts can pay off big time.

Even just setting aside $50 per month is a great way to start. The key to investing is not necessarily the size of the funds you are able to contribute, but rather the money-saving habits you choose to commit to. It might require slight changes in your lifestyle, but it's definitely nothing that you won't be able to handle. Here are 5 ways to start investing with little money.

Image result for moneyFlex Jobs

Don't forget to check the comment section below the article for more interesting stories!

#1 The Piggy Bank Approach

Slow and steady wins the race, even when it comes to investing. The first thing you should do is save a bit of money up so that you at least have something to work with. Put aside $10 a week in your piggy bank, for example, and in a year you'll already have over half a grand saved up. Get into the habit of taking some portion of your pay and setting it aside so that it won't feel like a burden moving forward.

Next, open an online savings account with a bank that offers a decent Annual Percentage Yield. For some banks, there is no minimum deposit required or monthly maintenance fees, which means you would earn on all balances. When your money has grown large enough, you can always take it out and put it towards a larger investment.

Image result for thrifty womanFacebook

#2 Get a roboadvisor

A roboadvisor is a digital platform that provides financial planning services without any human supervision. It is purely automated, using specific algorithms to determine the best options for investing your money. They were created to make your life as easy as possible—you don't need any prior investment experience to use them.

Perhaps one of the biggest advantages of using a roboadvisor is to avoid making bad investment decisions. Because the human factor is taken out, you don't have to worry about making emotional decisions during market highs and lows. Typically, it's those gut feelings that can get you in trouble. A roboadvisor does not make those kinds of mistakes.

Image result for AccountingiCharts

#3 Join your company's retirement plan

Another quick way to start investing is to join your company's retirement plan. If you don't have a flexible budget, this may seem out of reach, but don't be discouraged—even investing as little as 1 percent of your salary is good enough. That should be a small enough amount that you won't even notice it. The tax deduction will end up being smaller, too. After committing to a 1 percent contribution, you can then increase that every year, which would then coincide with your annual pay raise.

Image result for 401 k plansPiston Clasico

#4 Low-initial-investment mutual funds

If you're a new investor, you should consider putting your money into a mutual fund, which allows you to invest your money in a portfolio of stocks and bonds with a single transaction. The one catch is that most mutual funds require a minimum investment between $500 and $5,000; however, some may waive those minimums if you opt for automatic monthly investments of around $50 or $100.

The automatic arrangement is perfect for those on the payroll since you could just set up the direct deposits. Over time, you'll get used to the direct deposits and won't even feel that money being taken out of your account. If this is something you're interested in, talk to your company's human resources department to get it all worked out.

Related imageCursor

#5 Consider treasury securities

Treasury securities are saving bonds issued by the U.S. government. Through the Treasury Direct, you can buy fixed-income securities that have maturities between 30 days to 30 years, in denominations as low as $100. The nice thing about them is that they are viewed in the market as having virtually no credit risk, which means your interest and principal will very likely be paid fully and on time.

Most first-time investors don't choose this option, to begin with, but it's still an option nonetheless. While you may never get rich with these securities, it's a great place to start. Put your money behind them, earn some interest, and then eventually move your money to higher risk, higher return investments when you're ready.

Image result for us savings bondsAARP




The Rise of Semi-Retirement

Full retirement is no longer the only option. From supplemental income to boredom relief, there are many reasons why people are now choosing semi-retirement over full-retirement. Here's everything you need to know before you retire.
April 3, 2024 Allison Robertson
Cheap Hobbies Internal

Beat the Cold Without Burning Cash: Unique Indoor Hobbies on a Budget

Discover 15 unique and budget-friendly indoor hobbies perfect for the cold winter months. From DIY crafting to culinary experiments, this guide offers creative ways to stay entertained without straining your wallet. Dive into these cost-effective pastimes and make the most of your indoor time.
September 15, 2023 Allison Robertson

Top 10 Careers of 2023: Where Opportunity Meets Demand

Discover the top 10 best jobs of 2023, encompassing sectors like technology, healthcare, renewable energy, and digital marketing. Learn about the roles, salaries, and reasons why these jobs stand out in today's evolving job market, offering exciting opportunities for professionals across various industries.
November 20, 2023 Allison Robertson

The True Cost of Cheap: Why Opting for Lower Prices Now Might Cost You Later

Explore the unforeseen pitfalls and hidden costs of opting for cheaper products. This in-depth article unravels the financial, ethical, and personal impacts of choosing lower-priced items and provides alternatives to help you make savvy, sustainable spending decisions, ensuring your choices are economical and ethical in the long run.
October 15, 2023 Miles Brucker
Retirement Planning Internal3

10 Brilliant And Fun Ways To Beef Up Your Retirement Bankroll

Discover ten fun and easy strategies to boost your retirement income. Transform your golden years into an exciting new phase of life with these practical financial tips. Dive into dividend-paying stocks, explore peer-to-peer lending, consider annuities, and more. Add a twist to your retirement planning and make your relaxation years even more rewarding.
September 15, 2023 Allison Robertson

The Most Dangerous Jobs in the World

Discover the 15 most dangerous jobs in the world, and how much they pay. Learn about danger pay, PPE, and the risks associated with each job.
December 12, 2023 Allison Robertson

Dear reader,

It’s true what they say: money makes the world go round. In order to succeed in this life, you need to have a good grasp of key financial concepts. That’s where Moneymade comes in. Our mission is to provide you with the best financial advice and information to help you navigate this ever-changing world. Sometimes, generating wealth just requires common sense. Don’t max out your credit card if you can’t afford the interest payments. Don’t overspend on Christmas shopping. When ordering gifts on Amazon, make sure you factor in taxes and shipping costs. If you need a new car, consider a model that’s easy to repair instead of an expensive BMW or Mercedes. Sometimes you dream vacation to Hawaii or the Bahamas just isn’t in the budget, but there may be more affordable all-inclusive hotels if you know where to look.

Looking for a new home? Make sure you get a mortgage rate that works for you. That means understanding the difference between fixed and variable interest rates. Whether you’re looking to learn how to make money, save money, or invest your money, our well-researched and insightful content will set you on the path to financial success. Passionate about mortgage rates, real estate, investing, saving, or anything money-related? Looking to learn how to generate wealth? Improve your life today with Moneymade. If you have any feedback for the MoneyMade team, please reach out to [email protected]. Thanks for your help!

Warmest regards,

The Moneymade team