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Investing with little money.

Many people think that investing is only for those with a lot of money. This could not be further from the truth, no matter how little you feel your money is, you can start investing. The whole idea is to develop a habit of putting aside a certain amount every month that will go towards investing.

So how can you start investing with little money?

Learn to save.

Investing is a form of savings, and in order to have money, you’ll have to save some. Start factoring savings into your monthly budget. Even if it means putting aside 10 dollars a week do it and do it consistently. Over the course of the month you will have $40 saved and in a year $480, not a bad amount to have as savings.

Put your money in a savings account, and choose a bank that does not have a minimum amount as a deposit, and one which will not charge maintenance fees on the account.

 The best way to save is to learn to live on a little less; most of us end up spending a lot of money on frivolous things that add no actual value.  If you can religiously put away the money you would have spent on eating out or going to the salon, you will eventually find that you have a lot of money saved.

 Use online advisors to help you save.

There are some online tools that you can access that will help you start your investment journey. You do not require any prior experience to use them, and they are quite easy to set up. They will use automated intelligence to track your investments but you will need to factor in the fee you will need to pay a fee to use them.

 Take advantage of your employer’s retirement plans.

 Some employers have great retirement plans for the employees. You can enhance this by also contributing, and make it an automatic deduction so that over time you do not even notice that the money is being removed from your salary. You can, for example, decide to save 2% of your salary into the employer’s retirement plan. With an increase in your salary, you can also increase the amount you contribute. The best thing about it is that employers tend to match contributions made by employees so the more diligent you are about saving, the more you’ll be able to have at the end of the day.

 Invest in mutual funds.

There are mutual funds that require a low initial investment. Some companies will waive the set minimum amounts if you commit to making monthly investments. If you go through a payroll system, you can ask the human resource to deduct the amount automatically at the end of every month.  The fact that you do not actually get to hold the money in your hands means that you do not get to use it, this is a great way of starting a saving culture.

Final thoughts.

It is possible to start investing with little money, the first step is to start saving, the second is to find an investment vehicle that fits you and the third is to consult an investment expert who can be able to walk you through the process.