You don’t always need very big amounts of money to start investing, Read this full guide to investing for beginners to help you get started.

For a lot of people, (myself included hehehe) when you think about investing,

you automatically think of people with a wad of cash in their hands,

Chances are your imagination probably looks something like this…..

Or is it just my imagination, lol…

We automatically start thinking of movies like “the wolf of wall street”

where there are thousands of men in suits with computers and phones buzzing all around them convincing people to buy stock or shares.

Your brain automatically attaches the word “Rich” to “Investing”, which isn’t how its supposed to be.

The truth is you can start investing with little money today using the best guide to investing for beginners,

no matter who you are or where you are, it’s possible and am gonna show you 6 ways that you can.

If you are ready, lets get cooking!

Disclaimer: LifeAccordingToJae.com is not a financial institution, and so will not be held responsible for how any part of the information contained in this post is used in making financial decisions, this post is solely available for the purpose of keeping you informed.

6 Ways To Start Investing With Little Money | Guide To Investing For Beginners

1. Guide To Investing For Beginners – Save Money To Invest

For most people,

the idea of investing is something that requires you to have loads of money before it can even become a possibility,

while this may be true to some extent, not all investments require you to break the bank.

It’s easier to start out on your investment journey by saving first.

Of cos, if you already have the money to invest then there’s actually no need for you to save,

but for those who want to start investing with little money, this step is very crucial to your Investment success.

Start with putting aside 10 dollars a day or even a week,

you can do this by just occasionally throwing 10 dollars into a cookie jar or a piggy bank whenever you do something that you are not supposed to do.

For example, I can say, if I watch more than one Netflix movie a day,

I will put 10 dollars in the cookie jar, now in my case,

the cookie jar will definitely be full at the end of the week cos I watch A LOT of Netflix movies in a day……just saying…

But hey, this is a really great idea to save up some money for investing!

2. Guide To Investing For Beginners – Get Acquainted With Robo-Advisors.

It’s 2022 and things are getting more and more advanced these days,

you don’t even need to bother yourself about studying up on long and tiring Investment opportunities and strategies and data,

you can just let a Robo-advisor do it for you.

A Robo-advisor is a robotic or computerized replica of a human financial advisor,

who provides financial advice for you and helps you manage your investment portfolio online.

And guess what,

they were created by professional expert financial advisors,

They use Investment data provided by data scientists all over the world and developed into software by programmers and software developers.

These softwares, (Robo-advisors) use the data provided over so many years of research to determine what investments are worth considering,

they can even go as far as helping you invest your money with little or no interaction.

But just like any other business out there, Investing is also a risk, and so for Robo-advisors to properly do their jobs,

they ask you some questions to help find out what your goals are and what risks you may be willing to tolerate while making Investments.

The only disadvantage to using a Robo advisor is the cost of affording the software and capital needed to start an investment which can sometimes go as high as $500 just to get started.

With Robo-advisors,

you don’t have to continually worry about your taxes because they continuously use updated and well-structured programming algorithms to optimize your investment portfolio.

Some examples of Robo-advisors you should totally check out include; Wealthfront, Betterment, and Ally invest.

3. Try The Stock Market

Usually investing in the stock market sounds scary,

because a lot of people don’t know enough about it and it’s usually a very expensive way to start investing money.

Over the past few years, it has become totally possible to start investing with little money with this particular investment opportunity.

To get started you can invest very little money to get started and then monitor your Investment and also learn as much as you can about how to invest in stocks for beginners robinhood

This helps you familiarize yourself with the market and get to know how better to invest your money and which stocks are worth investing in and why.

Most stockbrokers now allow their investors the opportunity to invest a little money to get started and then increase the amount as they learn more and more about stock trading.

More importantly,

instead of saving up huge sums of money just to buy one very expensive stock or bond in a company like Amazon or Facebook,

you can now but a little amount of every any stock of your choice.

This has made it very easy for people to start investing with little money,

it also helps to minimize the risk involved in investing money in stocks,

since if your stock portfolio is diversified and not focused on only one company’s stock,

you don’t loose everything if the price of one stock falls.

Some really great stock Investment apps you should check out are Robinhood and Public.

4. Guide To Investing For Beginners – Try Real Estate

This might sound surprising, but investing in real estate has become a really big way to make money by investing,

the best part about it is that you don’t necessarily have to buy a whole property in order to invest in real estate.

Thanks to crowdfunding,

it has become totally possible to own a fraction or share of a real estate property,

and the best part is, you don’t have to worry about all the extra maintenance fees or even the duties as an owner.

Before we dive deeper into real estate investment, let’s quickly take a look at what crowdfunding is…

Crowdfunding just as the name implies is simply a way of getting a large number of people to fund a single project,

in this case, real estate properties,

this way, they all own a share of that real estate property and benefit a certain percentage of the profit generated from that property depending on the percentage of shares bought.

This is a great way of investing in real estate especially for people who want to start investing with little money.

The only limitation to investing in real estate is that it usually requires a lot more monetary investment than other methods of investing money

but if you can save up for it, it’s totally worth the try.

Some great real estate crowdfunding websites you can take a look at are CrowdStreet, Fundraise, RealtyMogul, and DiversyFund.

lets look at the next guide to investing for beginners tip…

5. Maximize Your Employers Retirement Plan

Most jobs now have a retirement plan that comes with the job, this is a great way to save up for retirement,

Ask yourself, am i investing enough for retirement?

This is something I advise everyone to do if you are working at a job that allows for retirement plans.

You can put away a very small percentage of your money every month in your retirement plan, the amount doesn’t have to be really big.

It can even range from 1 to 2% of your entire salary earnings for the month.

Committing to a percentage as little as this is great when investing in your future because you won’t even miss the amount you are putting away because it’s so little!

You can try to increase the percentage as you go or if you get a salary increase,

you can increase the percentage of the amount you are putting away in your retirement plan.

The amount invested in your retirement plan will then be strategically invested into a diversified portfolio of Investments to give you the best return on investment.

6. Guide To Investing For Beginners – Try Mutual Funds

Asides real estate and stock, mutual funds is the next best thing on my guide to investing for beginners

As a beginner in investing,

it might be hard to understand what mutual funds are and how much return on investment you can even get from them.

Similar to crowdfunding,

mutual funds are funds collected from a large number of people and invested into a diversified portfolio of investments such as stocks, shares and, bonds, etc.,

the return of Investment on mutual funds typically depends on the number of funds owned.

The great thing about mutual funds is that you don’t have to do all the work of investing in different Investment opportunities yourself.

The mutual fund company you choose does everything for you,

they carefully analyze the data available and sort through heaps of Investment opportunities available to select the best, then strategically invest in them to give you the best profit.

Some great mutual funds companies you need to check out include; Fidelity Investment Magellan Fund. And E* Trade.

Conclusion

The truth is, to be able to start investing with little money, you need to be willing to make the right sacrifices.

Things like saving up any little amount of money as much as you can to get yourself started isn’t a bad idea,

In-fact its definitely something that you should consider.

Robo-advisors and mutual funds are much better for people who don’t really have much time to do research on different types of investment opportunities in order to figure out which one works better for them.

It’s never too late to start investing money especially for your future, you never know just where it might come in handy.

If this guide to investing for beginners has helped you,

Don’t forget to share or leave a comment down below to support my blogging journey and help me keep writing,

I will be more than happy to answer any questions that you might have.

~Ciao

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