Investing for Everyone: How to Get Started Without Much Cash Upfront

Are you interested in investing but assume that you need to wait until you have money built up to pursue it? Or maybe you’ve never considered investing at all and think of it as something that’s only for the wealthy. Wherever you fall on this continuum, investing is more accessible than you probably realize, and it can be a great way to grow your wealth over the decades. On top of that, you can start with as little as $100 and sometimes even less.

Organize Your Finances

You don’t need to be rich to get started, but you should get your finances in order. If you have high-interest debts, you should pay those off first because they can cost you more over the years than you would make from investments. Debts also leave you more financially vulnerable. For debts that you can’t pay off in their entirety, see if you can reduce what you are paying. 

If you have several student loans that have varying terms and due dates, you may want to try to consolidate them into one comfortable monthly payment with a private lender. This might also help you save on your monthly expenses. You should create a budget and have a good idea of where your money is going. In addition to paying off your debts, you should also have some emergency savings and be contributing to a retirement account before you start investing in other ways.

Know Yourself

You might not think that doing a little soul-searching would be a step on the path to investing, but you do need to have an idea of your goals and your risk tolerance before getting started. You should also think about how hands-on you want to be. The best way to learn more about investing is by jumping in and doing it, but you should do some research before you get started to make sure you that you understand the basic principles. For example, big returns that happen fast generally involve big risks. The slow, steady way to make your money grow over decades is generally to diversify and then leave it alone.

Consider Robo-Advisors

A robo-advisor can be a great solution if you don’t have a lot to spend and you also don’t want to be very hands on. When you open an account with a robo-advisor, it will make your investment choices for you based on questions that it asks you about those things you took the time to consider—your goals and your risk tolerance. Be sure that you know what kind of fees you will be paying for this type of service, but in general, robo-advisors are easy, reliable ways to get started.

Jump into Stocks

If you’d like to be a little more involved, with just a few dollars, you can start purchasing stocks that you choose. Apps will help you get started, and in some cases, you can even buy fractional shares of stocks in big companies. As is the case with robo-advisors, these apps are designed to be user-friendly and welcoming to new investors.