A Beginner’s Guide To Investing Small Amounts Of Money
March 17, 2022 | Daniel Dewitt
Every investor – whether a professional or a beginner – starts somewhere. That often means breaking into the investing market by investing small amounts of money. You don’t need a hefty inheritance to have your money make you money. You don’t even need an inheritance at all. With the right tips, you can start with even the smallest amount. Use this guide to help you get started with your investing.
6 Tips To Start Investing Small Amounts Of Money
1. Start Putting Aside Some Investment Money
To be fair, you do need a bit of savings to start investing small amounts of money. But with even a small amount of money, you’re good to get started. Take your time but commit to consistency. Try saving $5 or $10 a week and put it in an envelope or keep it away in a drawer.
Make sure to mark off your savings specifically for investing purposes. Another approach is starting an online savings account that is separate from your checking account and any other type of savings account you already have. You can even automate it so you don’t even have to remember to set that money in that investing account.
2. Set A Financial Goal
You don’t necessarily have to know exactly what you want to invest in or how much you want to invest but start thinking about generally which type of investment may benefit you the most. Maybe you’re thinking about the best way to prepare for retirement, or maybe you’ve always wanted to get into real estate or art investing.
You can make investment goals that are either short-term or long-term. There are also better platforms for each type of goal. Money market accounts and online savings accounts are good for short-term investment goals, while longer investment goals, such as 10-year goals, likely require a 401(k) or Roth IRA.
3. Take Advantage Of A Retirement Plan At Work
If your employer offers a 401(k) or another retirement plan, that may be the best way to begin investing small amounts of money. Contributions to such plans are usually small enough to not affect you, and the payoff is worth it – especially if you keep working. You can even adjust your contribution as the years go on to move closer to one of your investment goals.
4. Don’t Be Afraid Of The Stock Market
Wall Street can be a little intimidating, and it’s normal to think that you can’t invest in stocks unless you’re already wealthy. Today, that is far from true. Investing small amounts of money in the stock market is easier than ever. Micro investing, usually through online platforms, has risen in popularity over the past few years.
Many let investors get started with stocks with as little as a few dollars and without trade commission charges. Mainstream brokers, like Fidelity and E*trade, have started to take note and have decided to drop charging commissions as well.
Another big trend is investing in major companies with fractional or partial shares. Instead of paying $400 for stock in Apple, you can now invest in part of a share of stock. That means you can invest in a major global company at a fraction of the typical cost.
5. Consider A Mutual Fund
If stocks have piqued your interest, mutual funds may be perfect for you. Through this approach, you invest in a portfolio of bonds and stocks with a single transaction. A mutual fund typically requires a minimum initial investment, which may deter some. But if you’ve saved a relatively small amount for investing, around $500 or so, mutual funds are within reach.
6. Get Into Real Estate
Investing small amounts of money by getting into real estate can actually work for you. Real estate crowdfunding now lets you own fractional shares of commercial properties, even large ones. Real estate remains one of the best investments anyone, even you, can make.
Get A Title Loan Or Registration Loan To Help Your Emergency Expenses
Investing small amounts of money is easy, but you need to be in a secure financial place to get started. If you’re dealing with a financial emergency that is preventing you from being financially secure, either a title loan or registration loan from Fast Auto Loans, Inc. may help.
If you have a lien-free vehicle title, you can use it as collateral for a car title loan. And if you are still making payments on your vehicle, you can use your vehicle’s registration for a quick registration loan. When it comes to credit, you can still qualify for approval for a title loan. For a registration loan, we will check your credit before deciding if you qualify.
A title loan or registration loan from Fast Auto Loans, Inc. can go a long way if you’re dealing with medical bills, emergency travel, or emergency auto or home repairs. Either loan process can take as little as 30 minutes to get through the in-person process and you can begin right on our website.
One of our loan representatives from the nearest Arizona quick loans location will give you a call and walk you through the rest of the easy process. Keep in mind that we need to inspect your vehicle for a title loan to determine how much you could get. We do not need to do that for the other loan. You can receive title loans between $300 - $15,000 and registration loans up to $900.
Start Investing With This Simple Guide Today
Investing small amounts of money can be rewarding if you do it with the right tips in hand. Use this guide to start investing your money today. And when an emergency gets in the way of your small investments, either a title loan or a registration loan from Fast Auto Loans, Inc. can help you out. Fill out the online form, give us a call, or visit one of our many locations today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.