You’ve probably heard the word investment a lot of times and probably thought about a big deal or something very Wall Streety. But you don’t need to be rich to start investing!
It is true that the more you invest, the more you gain. But wealth is something you are going to build throughout the years, so even you start with very little, you are still moving towards your financial goal.
Let’s see where to start investing depending on the amount of money you have:
What to do with less than $50
So, if you have less than $50 a month to put towards investment, you could try to first build more capital, but you can also start buying stocks. Some online brokers will allow you to begin trading for as little as $7. Penny stocks, for example, are stocks with a value lower than $1. They are controversial because of the high speculation level around them, but this is still an option.
What to do with $100
As your available capital grows, so do your options. With $100, you can start investing in a peer-to-peer platform, which will allow you to gain a fixed interest rate.
What to do with $500
If you have $500 available after you’ve covered all your regular expenses, the best thing to do is to put it in a 401(k). At a 7% return, those $500 will be $4000 by the time you retire in 30 years.
As you can see, you can create a savings habit basically with very little money while you continue to work to achieve your financial goals.