Many people believe that they need a big bank account to start investing. But nowadays, with so many different online platforms and investment avenues, you can get started with as little as $1! Those days of investing thousands of dollars are long gone. You can start investing in stocks and EFTs in just a few clicks of a button and start making profits instantly. Here are a few ways you can start investing with little money.
4 Ways You Can Start Investing With Little Money
Yes, savings accounts might not give you the returns buying stocks or investing in crypto might give you, but they are an excellent place to start. The big advantage of putting your money into a savings account at a bank is the zero risk of losses while you keep earning interest. It might not be the most exciting investment you can make. However, you can use the money you generate from this interest to invest into higher risk and higher reward investments later on!
Fractional Shares of Stocks and ETFs
Mobile apps like Robinhood, SoFi Invest, and Fidelity let you invest into and purchase fractional stocks in companies. You can easily use these brokerages to purchase percentages of shares. This is especially useful when share prices are higher than you’re comfortable paying. For example, if you wanted to buy a single share of Tesla (TSLA), it costs around $800. But with apps like Fidelity, you could purchase 0.1 shares of Tesla for just $80. You can start investing in different stocks on these platforms, starting with just one dollar!
Use a Robo-adviser
Robo-advisors are platforms that give you automated and algorithmic investment services with little to no human intervention. Robo-advisors have been around for almost a decade now, making investing as accessible and straightforward as possible. The algorithms and systems in use have been fine-tuned over the years. They are now more trustworthy and safe than ever. Platforms like Betterment, Wealthfront, and SoFi Automated Investing let the algorithms do the legwork of deciding where to invest for you. It takes into account the financial goals you set and the amounts you are willing to invest.
Real Estate Through REITs
Investing in real estate used to require thousands of dollars to buy land and properties. But now, with crowdfunding and real estate investment funds, you can invest in real estate and make profits without having to survey for houses, buy them, or sell them.
Real estate investment trusts or REITs let you invest in real estate just like you would with fractional shares. First, invest into a share of a property. Then, earn money through the rise in the value of the property, rental income, or reselling of the property.
Final Thoughts on Investing With Little Money
Investing is always complicated, whether you want to invest big or small. But the basics of investing are simple, and you just have to make smart choices, maximize the amount you can save, and minimize the taxes and fees you pay.
With limited resources, you need to be as smart as possible with your money and carefully plan out your strategy around your financial goals and your current financial health. Remember always to diversify your investments so you don’t lose it all in one go!