You want to start investing, but you feel like you don’t have enough money to get started. I know exactly how frustrating this can be!
Since my main financial goal this year was to get started investing, I had to work with my rather small budget.
What I found out though, is that you really don’t need much money to invest. Heck, you can get started with only $10.
So if you’re thinking you don’t have enough money saved to begin investing in your future, you’re completely wrong.
Here are some small investment ideas that can get you started.
Open a No-Minimum-Deposit Retirement Account
For years I had shied away from opening a retirement account for one reason: the huge minimum deposits!
Most of what I read stated that you need about $2,500 just to open a retirement account. (Wrong.) And on top of that you’d have to make automatic deposits each month. (Wrong again.) Since I didn’t have that $2,500 to open an account or that $200 to contribute on a monthly basis, I only dreamed about investing.
Then earlier this year I was introduced to online investment advisers like [Editor’s Note: This is now omitted and The College Investor suggests M1 Finance] and Betterment that require no minimum initial deposits and no automatic transfers.
I opened up a retirement account this year with only $50 and it was so darn easy. There really is no reason at all not to get started.
My first investing adventures didn’t happen with a retirement account. They occurred in my personal investing account when I began purchasing individual stocks earlier this year.
My first couple stock picks were epic fails so it was truly a blessing that I put very little money into them. As I quickly learned the dangers of purchasing penny stocks, I started amassing dividend stocks.
If you’re new to investing, I personally think buying individual stocks is a great way to get your feet wet. There are literally tons of different stocks you can purchase for under $100.
There are several brokerages you can go through to purchase individual stocks, but many of them charge $5 to $10 per trade. (Meaning, you’ll be charged for each transaction you make.) I personally use Capital One 360’s ShareBuilder which charges $6.95 per online trade. There are, however, cheaper transaction fees for automatic investments.
If you do some digging you should be able to find a brokerage that charges even less.
Here are a few tips on buying individual stocks:
- How to Steal the Pros’ Stock Picks
- The 4 Laws for Investing in Stocks
- 17 Top Investors Share 2014 Market Insights and Strategies
Also, check out our daily investing tips.
I hesitated on adding this to the list because peer-to-peer lending is something I have yet to try.
You see, I wanted to get in on the P2P action a couple years back, but unfortunately it’s not allowed in Ohio and therefore I can’t give it a shot!
I’m waiting for Ohio to loosen its reigns a bit, but until then I’ve been keeping an eye on some of my blogging friends who have been quite successful with P2P lending.
With both Prosper and LendingClub you only need $25 to get started investing. If you want to learn more about getting started, check out these articles:
Your Own Business or Career
For faster returns I would recommend starting your own business or investing in your career.
If you put a couple hundred dollars towards getting a certification or having a résumé professionally created, how much more money do you think you could make at your current job?
And for potentially faster returns, starting your own business could be a smart move.
For instance, I paid around $50 to initially get my website set up, and after about a year of work I have continually brought in around $400 to $1,000 per month.
There are tons of businesses you could invest in though, beyond the scope of online work. If you need some ideas check out these posts:
Also, check out the young millionaire series.
If you’re just getting started investing it’s important that you have realistic expectations. You’re not going to get rich by investing $100 into the stock market and waiting a year.
It will take time for your investments to pay off. But small amounts do add up! If you continually invest your money, you’ll be better off in the long run.
What was the first investment you ever made? Do you have any other small investment ideas?