If you are not in the investing universe you may think you need tons of money to build a portfolio. Well, we have some good news for you: You just need a couple of bucks!
Most people think that investing is just for those who have a great amount of money in their wallets. Nevertheless, everybody can start to invest! The only thing you will need is a few bucks.
The good news is that if you have $100 you can start investing! Then, the sooner you begin to invest, the faster your savings will start to grow.
Check out the best ways to start building your portfolio with low-cost investments!
High-Interest savings accounts
One of the easiest ways to start your investment journey is through savings accounts. This is a safe and practical way to save your money and invest at the same time.
It obviously doesn't count with a wide range of returns as investing in the stock market, but if you look for high-interest savings account you will start by multiplying your savings! Besides, you can withdraw your money any time without facing any penalty.
If you don't have an emergency savings account yet, then you should open one ASAP! Look for those accounts with a high-interest rate, and don't forget to check online banks as well.
Turn to Certificates of Deposit
Certificates of Deposit (CD) are also an option if you want a risk-less method to make your money grow. Compared to a savings account, this option will grant a higher interest rate.
In this case, CD offers returns on your investment as long as you lock away your money for a period of time. That means that once the term comes to an end you will get back your investment with a plus based on the interest rate agreed.
The terms implied in CD may be from three months or up to five years. The interest rate will increase based on the period you agree.
Make sure you look among the options that allow minimum deposits of $100 and that grant higher interest rates (which may reach up to 2.10%).
Look for an investment app
If you aren't quite sure how to start investing in the stock market, then you should give investment apps an opportunity!
There are plenty of apps that can guide you through this new adventure. One of the best options is Stash, which consists of a monthly fee of only $5.
Firstly, this app will determine if you are a conservative or a more flexible investor by asking you some questions. Then, after figuring out your investment style, Stash will prepare the most suitable recommendations.
This option is also quite a good one for beginners. Robo-advisors give you automated investment options that will simplify your first steps in investments.
Once you add the money you'd like to invest in your account, the platform will do the rest of the work. Robo-advisors will be in charge of keeping your portfolio balanced and reinvesting dividends, among other features.
If you'd like to try Robo-advisors you should check Betterment and Walthfront. Bear in mind that fees will be slightly higher than investing your funds with a company.