How to start investing with little money

Getting started in the investment game is usually considered something that requires a lot of money. This is simply not true. There are many options for you to start investing that take a lot less than you think.

If you are a new investor, you are in the right place. You might be under the impression that the first thing you need to start investing in is a large amount of money. Well, It is not. With some information and a rather small amount, you can get started in no time.

Consider commission-free investments

Investing often has fees that take out a portion of your purchasing power. So it is understandable that if you are to invest a small sum, fees will take a huge percentage of it. 

However, there are many discount brokerage firms that offer different investment options without charging a commission. This is a good place to start until you gain ownership of a specific sector.

Buy fractional shares

There are ways for you to purchase less than a full share of a stock. There are many apps that will allow you to get fractional shares. You can try Stockpile, which allows you to spend as little as $5 and get shares of more than one thousand ETFs and mutual funds. Another app is Divy, which lets you purchase fractional shares starting at $10 and with a commission of just 10 cents. This is also a great way for you to get started in the market.

Find low-priced stock

A stock can still be a solid investment even if it’s trading at a low price. Actually, there are good companies that consistently trade at $15 or less. If your investing money is limited, this is a good option for you to consider. You can check the history of a particular low-priced stock in the past 5 or 10 years to have an idea of how it performed, but keep in mind that there is no way of predicting the future, so a good performance in the past doesn’t mean it’s going to be good in the future.

Save money

This is a more classical approach, but you can think of it as a two-step investment. If you are determined to become an investor, you can always start by saving money until you have enough to invest in a mutual fund or any other option you feel comfortable with. You don’t need to jump into investing at once, you can take your time to build a nice capital and then take it from there.

Wealth is built over time and investing is a habit you work on throughout the years, so it doesn’t matter where you start, it is important to just get started! 

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