One of the most common questions I get is how to start investing with little money. That’s a good question and I prefer to hear that, instead of, I will invest when I will have money. If you wait to invest when you will have money, probably you will never invest.
Some people will go their whole lives without investing any money. Why? Perhaps it is because they don’t feel they have enough cash to invest. There’s a misconception that you need thousands of dollars to become an investor, but nothing could be farther from the truth, especially today.
You can reduce the number of Starbucks you drink per week and invest that money. There are so many investment apps today that it’s so easy to start investing. Some of the most popular apps are Acorns, Betterment, and M1 Finance
You need to start investing and you need to make it a habbit. The actions you take today can determine your well being in 30 years. Do it for you, for your family, for your grandkids.
Investing $100 per month may seem insignificant, but by doing that consistently, month after month, the result will amaze you in 30 years from now. Go see by your self. There are so many investment calculators available online. Pick any of them, select an annual return of 10%, period of 30 years, and monthly investment of $100. Magic! You contributed $36.000 in 30 years and your balance is $206,284! You gained $170,284 from passive investing.
Let’s take it one step further, let’s say you decided to build a side hustle, and you manage to earn $300 extra per month, and you decide you invest all of them every month. Now instead of $100, you invest $400. Go back to your calculator. Isn’t it amazing? You gained $681,137 from passive investing
Hope these possible results will light a small spark in you, and it will burn forever. The earlier you start investing, the better. The best day to start is today, the second-best day was yesterday.
I will make a detailed review of these apps in the future. If I had to pick one right now I would go with M1 Finance for its simplicity. Beginner investors can get started quickly with any of the 80+ expert portfolios on M1’s platform.
Books to read
Think and Grow Rich | Buy on Amazon
The little book of common sense investing | Buy on Amazon
I Will Teach You To Be Rich | Buy on Amazon
The Intelligent Investor | Buy on Amazon
A Wealth of Common Sense | Buy on Amazon