How Little Is Too Little to Start?
Back when I was a beginner at investing, I read an article in a magazine that basically asked 3 prominent Wall Street investment advisors what they would do with $1000, $10000, and $100,000
today. Now bear in mind this was some 20+ years ago. Would you believe one of the advisors had the nerve to say (sic), "Don't bother with $1000 - take a vacation instead." Of course if those
reading the article had taken those funds at the time and invested in a "little fruit company..." as described by Forrest Gump (Apple), everyone reading that article would have a substantial
nest egg today.
Why did I tell you this story? Easy. It's your first lesson: There is no such thing as "too little to invest" or "too late to start." Anyone who tells you otherwise is lying to you and does not have your best interests at heart - and believe me, in the world of investing there are PLENTY of those people around.
How Much Money Do I Need to Start Investing?
How to Get Enough Money to Start Investing
Beginner investors with little money have the burden of needing to gather together enough funds to open an account and get started. That is a substantial challenge to overcome for many.
Here are three ways to overcome the "little money" challenge:
- Make small weekly contributions to your investment account
- Take a small amount of the money you earn from your job or other income and have it automatically deposited in your investment account
- Sell non-income producing valuables to raise cash
- This is slightly more risky however if you have accumulated a lot of "stuff" which you're never going to use - selling it to raise cash for your investments may be a good idea
- Start a low budget online business
- The fact that you're reading this at all tells me you have access to the internet. If you can access the internet and have a Facebook account, you can make money online without investing any money.
Set Investing Goals
Figure Out How Much Money You Have to Start Investing>
Then Set Appropriate Goals. Goals Decide Which Actions to Take.
Actions Are What Produce Results
What Type of Investment Is Right for Me?
Overcoming the High Costs of Investing
The right type of investment for beginners typically needs to be simple yet it also needs to fit in with the overall goal or goals of the investor. There is a HUGE variety of investments to choose from today - some of which are clearly NOT suited for most beginners. Having said that, beginner investors with little money also have the additional burden of needing to earn high rates of return in order for the investments to be worthwhile (think of the Apple example above versus the vacation). That is another substantial challenge to overcome.
Here are a couple of ways to overcome the high rates of return challenge:
- Keep Costs Down
- Make as few transactions as possible - as there are normally fees associated with every transaction
- Use Exchange Traded Funds to Pool Resources (ETFs)
High Risk High Return Investments
- These are simply NOT for the average beginner - USE with CAUTION!
How to Start Investing Today with Little Money
The bottom line is to get started today by raising cash. As little as $100 will open an account if you're willing to make regular deposits to increase your balance. Adding cash regularly and automatically will bring your balance up to a level where investing it becomes cost-effective.
More Thoughts on Trading without Money
A Short Video on Investing with Low Capital
It can be very difficult to get started investing if you don't have a lot of money to begin with. This can be particularly true of recent college graduates (or even enthusiastic students). Fear not though, as there are ways to trade that don't require a lot of money to start ($200 or less in many cases) and some trades can be done in $5 increments.
Tips on Getting Started Day Trading
Thoughts on How to Start without a lot of Money
Investing in the stock market is somewhat a game for the rich and powerful but there are ways small traders can get in and out quickly and still make a few bucks without risking a lot. This day trading blog helps visitors find ways of trading without putting the rent payment at risk.