How to become an investor with little money?
Setting aside small amounts of money can help you save even if the idea of investing is daunting. Dividend reinvestment plans allow you to buy small amounts of dividend-paying stocks straight from the company while reinvesting the dividends. You can buy one ETF share at a time through a broker.
- Drip-feed your cash into investments. You don't need to have a lump sum to start investing. ...
- Buy an index tracker. ...
- Use a robo-adviser. ...
- Mitigate your risk. ...
- Invest for the long-term. ...
- Open a high-yield savings account.
- Decide your investment goals. ...
- Select investment vehicle(s) ...
- Calculate how much money you want to invest. ...
- Measure your risk tolerance. ...
- Consider what kind of investor you want to be. ...
- Build your portfolio. ...
- Monitor and rebalance your portfolio over time.
- Stock market investments.
- Real estate investments.
- Mutual funds and ETFs.
- Bonds and fixed-income investments.
- High-yield savings accounts.
- Peer-to-peer lending.
- Start a business or invest in existing ones.
- Investing in precious metals.
- Short-term certificates of deposit. ...
- Series I savings bonds. ...
- Treasury bills, notes, bonds and TIPS. ...
- Corporate bonds. ...
- Dividend-paying stocks. ...
- Preferred stocks. ...
- Money market accounts. ...
- Fixed annuities.
You do not need a lot of money to start investing. You can start investing in a retirement plan with any amount of money. If you have a 401(k) at work or your own IRA, putting any amount of money into the accounts will count as investing.
The truth is that most investors won't have the money to generate $1,000 per month in dividends; not at first, anyway. Even if you find a market-beating series of investments that average 3% annual yield, you would still need $400,000 in up-front capital to hit your targets. And that's okay.
- Retirement plans for retirement goals. If your investing goal is retirement, you might already be invested if you're taking part in an employer-sponsored 401(k) plan. ...
- Low-cost brokerage accounts for (nonretirement) financial goals. ...
- Index funds and ETFs. ...
- Help from robo-advisors.
- Bond funds. ...
- Dividend stocks. ...
- Value stocks. ...
- Target-date funds. ...
- Real estate. ...
- Small-cap stocks. ...
- Robo-advisor portfolio. ...
- Roth IRA. Overview: A Roth IRA might be the single best retirement account around.
- High-yield savings account (HYSA) ...
- 401(k) ...
- Short-term certificates of deposit (CD) ...
- Money market accounts (MMA) ...
- Mutual funds. ...
- Index funds. ...
- Exchange-traded funds (ETFs) ...
- Stocks.
What is the best investment app for beginners?
- Acorns. Acorns makes it easy to invest with whatever you have by automatically investing your spare change. ...
- Betterment. Designed to help you reach your goals, Betterment is great for beginners because it includes automated investing. ...
- Charles Schwab. ...
- E*TRADE. ...
- Fundrise. ...
- Invstr. ...
- M1 Finance. ...
- Public.
“Ideally, you'll invest somewhere around 15%–25% of your post-tax income,” says Mark Henry, founder and CEO at Alloy Wealth Management. “If you need to start smaller and work your way up to that goal, that's fine. The important part is that you actually start.”

Cash. A cash bank deposit is the simplest, most easily understandable investment asset—and the safest. It not only gives investors precise knowledge of the interest that they'll earn but also guarantees that they'll get their capital back.
- Test user experiences. ...
- Take surveys online. ...
- Sell stock photos. ...
- Sell other stuff you already own. ...
- Become a dog walker. ...
- Try pet sitting or animal care. ...
- Consider house sitting. ...
- Drive for a rideshare company.
- Say No to Debt. ...
- Be Consistent in your Investment. ...
- Don't Put All Your Eggs in One Basket. ...
- Switch Investments as Your Priority Changes. ...
- Start Early. ...
- Invest Smartly. ...
- Put Your Fear Aside. ...
- Get Expert Advice How to Grow Your Money.
- Subprime Mortgages. ...
- Annuities. ...
- Penny Stocks. ...
- High-Yield Bonds. ...
- Private Placements. ...
- Traditional Savings Accounts at Major Banks. ...
- The Investment Your Neighbor Just Doubled His Money On. ...
- The Lottery.
Treasury Bills, Notes and Bonds
U.S. Treasury securities are considered to be about the safest investments on earth. That's because they are backed by the full faith and credit of the U.S. government. Government bonds offer fixed terms and fixed interest rates.
TreasuryDirect.gov is the one and only place to electronically buy and redeem U.S. Savings Bonds. We also offer electronic sales and auctions of other U.S.-backed investments to the general public, financial professionals, and state and local governments.
- Be Financially Disciplined. Financial discipline helps you take control of the money you earn. ...
- Create a Monthly Budget. ...
- Have an Emergency Fund. ...
- Make Savings a Priority. ...
- Avoid Debts. ...
- Calculate Your Net Worth. ...
- Invest Your Money. ...
- Learn New Skills or Hone Your Current Skills.
Commit long-term
Think about it, the value of your investments might be down, but for now, it's only an alarming figure on your dashboard, it's definitely nerve-wracking, but you'll only lose money if you sell when the share price is lower than what you originally bought it for.
Is investing actually worth it?
Investing has the potential to generate much higher returns than savings accounts, but that benefit comes with risk, especially over shorter time frames. If you are saving up for a short-term goal and will need to withdraw the funds in the near future, you're probably better off parking the money in a savings account.
- Idea 1: Invest in Dividend Stocks. ...
- Idea 2: Invest in Real Estate. ...
- Idea 3: Rent Out a Property. ...
- Idea 4: Invest in Peer to Peer Lending. ...
- Idea 5: Build an Online Business. ...
- Idea 6: Create an Online Course.
- Start Freelance Writing. ...
- Begin Blogging. ...
- Practice Graphic Design. ...
- Assist with Bookkeeping. ...
- Become a Virtual Assistant. ...
- Sell Something on Etsy. ...
- Manage Social Media Accounts. ...
- Complete Online Surveys.
- High-yield savings accounts.
- Certificates of deposit (CDs) and share certificates.
- Money market accounts.
- Treasury securities.
- Series I bonds.
- Municipal bonds.
- Corporate bonds.
- Money market funds.
If you don't know much about the stock market, consider investing in S&P 500 ETFs. You can then branch out into individual stocks as you get better at researching companies. Aim to maintain a diversified portfolio at all times.