Since you are reading this page, you must be trying to find some tips to invest money in the right way.Luckily, there are actually various ways you can do to invest your money. Thebest part is that you don’t always need a lot of money to start investing.
How to Start Investing Money as Beginner
Many people think that they need a huge capital to startinvesting. This isn’t entirely true. In fact, you can also start investing foras small as $50 per month. The key can be as simple as developing investinghabit. In this case, you can start by regularly putting some money forinvestment every month.
5 Tips to Invest Small Amount of Money
If you need other ideas to invest a relatively small amount ofmoney, these tips to invest moneywill be your best solution. From taking advantage of saving accounts toemploying a robo advisor to invest your money, the possibilities are actuallycountless. For further, here are some of the best ways to invest a moderatelysmall amount of money.
Tips #1: Try the Cookie JarApproach
We cannot deny that investing money and saving it is closelyconnected. In order to invest money, you need to save some first. It may take time,but it’s going to be worth once you do it regularly. If you have never been a goodsaver, you can attempt by putting away $10 each week.
- Take advantage of saving accounts
One of the best ways to save your money for investment is by usingsaving accounts. Well, you actually won’t be able to earn much money at thebank. But, saving your money in a bank is one of the tips to invest money with very little money. More interestingly,you don’t have that huge risk of loss as well.
Instead of using it as a method of investment, you can simplyutilize it as a place to accumulate a bigger amount of capital for otherinvestment with higher reward/higher risk in the future. This is because someof the investments that are included in this list may ask you to prepare forabout $500 to $1,000 to get started.
Tips #2: Take Advantage of Robo advisor
Nowadays, there are robo advisors which were created to makeinvesting as accessible and simple as possible. You don’t need to have initialinvestment experience to start investing. Then, it is also easy to set up.Then, you can just allow their automated intelligence to track your investment.Here are some robo advisors that you can take into account.
- Betterment
Among a number of robo advisors available out there, Betterment isone of the best. Taking advantage of it is one of the great tips to invest money for smallinvestors. You can begin by completing an online questionnaire which enablesthe site to decide what your risk tolerance is. After that, a portfolio will bemade for you.
Once you registered on this robo advisor, all you need to do is fundingyour account. You don’t need to think about investment selection orre-balancing the investment. For the first deposit, Betterment investmentactually has no minimum requirement. You can register for an account byassigning contributions of at least $100.
- Wealthfront
This is another recommended robo advisor for new investors. Thebest thing about this robo advisor is its reasonable fee which is only 0.25%.If you’re MU30 readers, you can get your first $5,000 managed without charge.To get started, you will only need to prepare $500. So, it can be one of thebest tips to invest money.
- M1 Finance
M1 Finance is one of the best robo advisors out there which hasbrought a brand new perspective to investing. Similar to Betterment, they letyou automatically invest in a variety of vertical. However, the brokerage alsolets you trade both ETFs and stocks for free. It is also possible for you tobuy fractional shares with M1 Finance.
At this point, if a company’s stock is currently $300 a share, youdon’t have to buy $300 for the share. More interestingly, you can get startedwith M1 Finance at just $100. After that, you can select from one of theirpre-made portfolios. They have a user-friendly interface, so you don’t need toworry.
Tips #3: Register in YourEmployer’s Retirement Plan
Even when you acquire a tight budget, you can actually still startinvesting in your employer-sponsored retirement plan. For instance, you cansimply plan to invest only 1% of your salary into the retirement plan. This isone of the smartest tips to invest moneysince registering a retirement is a valuable investment for your future too.
As time pass, you can improve your contribution gradually everyyear. For instance, you can enhance your contribution to 2% in the second year.Then, you can increase it again to 3% in the third year, and so on. You cancheck on some tools for hands-off investment management as well to optimizeyour retirement plan.
Tips #4: BenefitLow-Initial-Investment Mutual Funds
Mutual funds are investment securities which let you invest in aportfolio of bonds and stocks with a single transaction, making them ideal forbeginner investors. The problem is most mutual fund companies make itcompulsory to pay minimum investment that is between $500 and $5,000. Thoseminimums might be out of reach for some first-time investors.
However, you can use these tipsto invest money in mutual funds with a little capital to start. In thiscase, you are supposed to find some mutual fund companies that waive theiraccount minimums if you are in agreement to automatic monthly investments from$50 to $100. This feature is especially common in mutual fund accounts.
Tips #5: Develop Your Own Business
Last but not least, you should consider investing your money todevelop your own business. So far, we have discussed investing in otherventures. However, if you are searching to invest your little money, managingyour own business can be the best option after all. Now, you can practice thesesmart tips to invest money and gainadditional income!
Helping You Plan For Your Financial Future And More! Life is as busy as it gets, now is the time to make financial decisions that mean the most to you. With the help of the industry’s top advisors in the field of wealth management and legacy planning, I want to help you achieve and exceed your goals.