Many people avoid investing in the stock market because they think it is something that only people with a lot of money can do. But, did you know you can start investing and growing your wealth even if you only have a few dollars? The key to growing your wealth is developing good financial habits – like putting aside a set amount of money every month. You can do this by making small changes to your lifestyle, like making your own coffee at home instead of getting a cup of barista-made cappuccino.
Are you intrigued? Read on to know how you can start investing in the stock market even if you don’t have a lot of cash.
Try the Cookie Jar Method
Investing and saving money are pretty closely connected. If you want to invest your money, you will need to first save some up. Never been much of a saver? Here’s an approach that can work – take some cash (it can be as low as $10) and put it in a small safe or envelop. Then, continue storing money in the same place whenever you can – when your stash is large enough, you can invest it.
Use a Robo-Advisor
Robo-advisors have been present in the investing scene for about a decade, and have made investing in the stock market a lot more accessible to people. Robo-advisors work by asking you questions to determine your risk tolerance and then investing your money in a low-cost, highly-diversified portfolio of stocks and bonds.
Use Investment Services that Don’t Charge Any Commissions
The internet has made a great many things possible – one of them is giving prospective investors the opportunity to invest in stocks with as little as $1 and not having to pay any trade commissions. Stockbrokers, in the past, charged several dollars as commission each time you made a trade, and this made the whole investing process cost-prohibitive. But, making use of no-commission trading services can help you leverage stock market movements, without having to pay for your trades.
Be a Part of Your Employer’s Retirement Program
If you can’t spare any cash, try to enroll yourself in your employer’s 401(k) plan or any other similar plan.