A lot of people in the world don’t invest, and all for one, simple reason: they think it is an activity only for the wealthy. But the reality is that you don’t need a lot of money to get started with investing. You could begin with as little as $50 a month – perhaps even less.
Investing does, however, require a lot of good habits. And it’s more likely to be here that people slip up – not because they believe they can’t afford it. In today’s guide, we’re going to explore how you can get started with an investment with a small amount of money, and improve your financial security by a significant amount. Let’s take a closer look.
Start saving now
The first step in investment involves having some money to invest with. And it’s here where many people have problems. The idea is to start small and start building up a fund. Even if it’s only $10 a week, that still ends up as over $500 in a single year. Whether you put in in a bank account, a safe, or a cookie jar is up to you – the point is, start now. Once you are in the habit of saving, you will begin to look at your finances a lot differently.
Building the savings pot
OK, so now you are on the road to building up a savings pot – how can you make it bigger? It’s easier than you might think. www.Cards2Cash.com recommend using discounted store cards for your regular shopping. TheSimpleDollar.com suggests cancelling club memberships and eliminating your cable bill. And the team at www.Clark.com think learning to negotiate, and barter is the way forward. The point is there are areas of life where you can save a lot of money, without too much stress or strain. And pretty soon, the $500 you are putting away, has the potential to double in size, at least.
Retirement
Now you have some money to put away, where should you put it? Retirement funds are the most accessible starting point, so enrol in your employer’s 401(k) plan. Even if you only contribute 1 per cent to the program, it can make a significant difference in the future, and it won’t be difficult to double, triple, or even quadruple that sum as you progress.
Automated investment
But what about taking things a step further? An excellent place to start is one of the many automated investment platforms that are out there right now. The likes of Betterment will give you a portfolio containing a few different exchange-traded funds – or EFTs. You just need to fill out a short questionnaire, and your investments are taken care of by the platform.
Low-initial-investment mutual funds
Finally, another excellent option for rookie investors is mutual funds, which give you the chance to invest in a portfolio of stocks and bonds with just one transaction. If you agree to spend $50 or more each month, many mutual funds will agree to waive the typical account minimums, which can be as much as $5000.
As you can see, investment is not just for the wealthy, or those looking to . These schemes – and many more besides – will have you investing in your financial future, without too much impact on your current lifestyle. Good luck!
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