Not everyone has a big lump sum of money or some family inheritance to invest when they get started. In fact, the very reason many people don’t get started investing is because they don’t feel they have enough money. With the power of some cool apps and the internet, there are many ways to get started investing even if you don’t have $100. Here are five ways to start investing for less than $100
- Is It Time To Call RobinHood?
RobinHood is an app that is catching on with those who are just starting to open an investment account, especially those people who want to buy stocks. This platform has zero minimum investment (well, you will have to invest something to be able to buy some stocks) and it also is a zero commission trading platform. There are some regulatory trading charges that are minimal in cost, so this could be a decent opportunity to get started as a basic investor.
- Where Should You Keep Your ‘Stash’?
Stash is an app that can help you get started for as little as $100. With Stash you are going to have the opportunity to buy an exchange traded fund or one of the prepackaged solutions that Stash has put together for you. You can decide if you want a ‘techie’ platform or a ‘green and clean’ platform. They typically charge $1 per month up to $5,000, and then it will cost you .25% management fee per year plus the costs of the funds.
- Who Knew Spending Money Could Be Saving Money?
Have you ever heard that term you should be squirreling away your Acorns? Acorn is a platform that attempts to help you save small amounts of money every time you make a purchase. With this app, you agree to link in credit cards or debit cards (or whatever you use to make your daily purchases). Acorn then rounds up your purchase to the nearest dollar and then puts that spare change into your bank account. For example, if you make a purchase for $20.45, Acorn will round up to $21 and put the extra .55 cents into your investment account. Much like a change jar, it won’t appear to add up to much when you start saving, but over time you can build up a small investment nest egg. They charge in a similar fashion as Stash.
- Time To Go To The Government?
While Savings Bonds may seem to be extremely boring, they are also a low-cost way to be able to start investing for your future. You can go to www.treasurydirect.gov and begin investing as low as $25 in programs such as EE Savings Bonds. For $50, you can also look at I Bonds from the Government as well. Each of these programs work a little bit different, but this is a low-cost way to begin learning about and getting used to making ongoing investments.
- Could Your Local Bank Be Helpful?
Most people know that the bank isn’t going to get you the greatest return on your money right now, but it is a very easy way to get started investing. Whether you go to your local credit union, your local bank, or use an online bank, opening up a share account or savings account will allow you to begin systematically adding to your bank account. Especially for your children, this can be a great place to start so you can teach them how to read a bank statement.