Here’s Exactly How to Win This Week
You have very little money and you want to grow it exponentially. Is it possible or not? Most people think you need thousands of dollars to start investing and building wealth. But this is certainly not true! You can start investing for as little as $50 per month.
This is not about the size of the investment but how regular it is. If you develop consistent and good financial habits, it will not take long for your small amount of money to grow into something incredibly substantial.
Ready to start investing this week and win big in your financial life? Below are the best ways to start right away.
- Save and invest. These are interconnected. You must put money away first then invest it. Small steps count for a lot. You can start by saving $10 a week, which translates to over $500 in a year. Look for ways where you can score this extra $10 – maybe you can skip the coffee or a weekend night out. The point is to develop a habit of living on a little bit less than you earn so you can earn savings. Start with small amounts of money and then increase as you get more comfortable with the process.
- Enlist a roboadvisor. Do you want to invest but lack the know-how? Delegate it to a roboadvisor. They make investing as simple and accessible as possible. No prior investment experience is required and set-up is easy. The roboadvisors have automated intelligence that you can rely on to look after your investments and they come with low fees, too. Some good roboadvisors to check out include Wealthfront, M1 Finance, Swell, and Betterment.
- Enroll in your boss’ retirement plan. This sounds like it lowers your income more but investing in your employer’s retirement plan comes with rewards later in life. Start with a small amount so it does not hurt you. It can be as low as investing 1% of your salary and gradually increasing it every year. If your employer matches your contributions, even better!
- Find a low, initial investment mutual fund. You may have heard of mutual funds before and ignored it because it does not seem accessible for your budget. The trick is in finding a company that is flexible about the initial investment. If you are a new investor and lack the minimum $500 or $5,000, look for a company that waives the account minimum if you agree to automatic monthly investments of between $50 and $100. This automatic investing is more convenient if you set it up through your payroll savings, too.
- Park your money in Treasury securities. For the risk-averse, investing in savings bonds is a good start. You can buy fixed-income US government securities with maturities of anywhere from 30 days to 30 years in denominations as low as $100. Visit Treasury Direct, the government Treasury bond portal, to learn more details.
There are always ways to invest your money, regardless of the size of the amount. What matters here is that you start. The more you invest, the easier it becomes, and before you know it, you are on your way to building your wealth.