Most people who care about their finances would agree that investment is a major goal – and with good reason. After all, if you can invest wisely, it can lead to some pretty significant improvements in your financial position, no matter where you are starting out from. But many people feel shut out of the world of investment simply because they are not starting from a place of great wealth. Is this justified, or is it possible to start investing with only a small amount of money in the bank? Let’s take a look – the answer may surprise you.
High-Yield Savings Accounts
One way to start investing a small amount of money is to set up a high-yield savings account, and start putting money into it. With such an account in place, it doesn’t really matter how much or how little you have to spare – as long as you have at least something to put into it, you will be able to start growing your wealth. This is also a no-risk strategy, so you are not going to lose your investment – you will at least get that back, whatever else happens. Do make sure you choose the appropriate savings account for your needs, however, for best results.
Fractional Shares
Do you want to start investing in stocks and shares, but you’re unsure if you have enough money to do it? A lot of people find themselves in this position, but the good news is that it’s perfectly possible to buy shares with only a little money – as long as you do it through the purchase of fractional shares. A fractional share is exactly what it sounds like – a small part of a share of a company. Choose wisely, and you could get some money back – but remember that such an investment is never entirely free of risk.
Online Discount Brokers
The days of having to be an expert with a lot of money in the bank in order to invest are long over. Today, anyone with a smartphone and at least a little spare change can get started in investments of all kinds, thanks to the range of online discount brokers that are out there. You might have heard of the likes of Robinhood, for instance, which has a quick set-up and is easy to use. These are potentially risky, but you might get a high reward – so take care and choose carefully what you invest in.
Clearing Debt
Bear in mind that, if you currently have any debt to your name, it is usually more beneficial to clear that debt first and foremost, before you start trying to make money through a range of investments. That’s because you might well end up paying more in interest than you are receiving from your investments – thus making the whole endeavor pointless. So make sure to clear your debt as soon as possible, and then look into investing in this or that. This is a much more sensible way to go about things.