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The word “investing” can sound extremely intimidating and frightening at first, especially if you are just starting to look for ways to invest your money. I know it sure did for me.
And if you are just starting out, it can be scary putting your hard-earned dollars somewhere that isn’t a regular checking or savings account. I totally get it, friend!
But investing can also be an amazing resource to have your money go out and make you even more money without having to exchange your valuable time to work for it. With a little bit of research and willpower, you can build your wealth quicker and become financially free when starting with little money.
I list below some of the best investments to make with a little money to start out with, however, this is not financial advice and I urge you to do your own research when it comes to your investments.
Ok, let’s do this!
High Yield Savings Account
Investing in a high yield savings account will definitely not make you a millionaire, however, it’s a great zero-risk option for earning a little bit of money with your savings. If you have an emergency fund or just some extra money sitting in a regular savings account, why not transfer that money to an account that could start earning you some interest while it sits there?
A high yield savings account is a way to get started with investing to build up a little bit of money so that you can invest more later on when you are ready to start investing in higher risk, higher reward investments. This is an account that you can open and start earning some interest with today.
I highly recommend looking into CIT Bank’s high yield savings account. They offer about 10x the national average APY and all you need is $100 to deposit to open an account.
Invest in Fractional Shares with M1 Finance
M1 Finance is an investing platform that offers a combination of investing, borrowing, and cash management options. With M1 Finance, you are able to build and automate your own investment portfolio or you can invest in premade portfolios.
One of the benefits of using their platform is that they allow investors to buy fractional shares of stocks and EFTs. Fractional shares allow you to buy a portion of one share of any given stock for a fraction of what you would pay for the whole share.
This helps you to get into high-barrier stocks like Amazon or Google.
For example, with M1 Finance fractional shares, if an Amazon share costs $2,000, and you only have $200 to invest, you could invest your $200 and you would own 10% of that Amazon share.
If you are interested in fractional shares, you can sign up with M1 Finance here.
Invest in US Treasury Programs
If you are looking for an extremely safe investment, US Treasuries might be for you.
These are government securities that are issued by the federal government and are protected from market fluctuations because they are backed by the US Government.
US Treasuries come in the form of Treasury Bills (short term securities), Treasury Notes (fixed-principle securities), and Treasury Bonds (long-term, fixed-principle securities). You can even set up this investment to be taken out of your payroll if you would like.
If you are interested in this type of investment, you can invest in them through the US Treasury’s online portal called Treasury Direct.
Invest with Your Spare Change With Acorns
Acorns is an amazing investing app that lets you invest your spare change through “round-ups”. This means that the app can round up all of your purchases to the nearest dollar and invest the difference.
This is a very “out of sight, out of mind” approach to investing. So, if you are a beginner and have been wanting to try out investing, investing your spare change with Acorns is a great place to start out.
You can get a $5 welcome bonus through my link here after your first spare-change investment!
Invest in Low Minimum Mutual Funds and EFTs
Mutual Funds are investment portfolios that pool yours and other investor’s money together in order to purchase a variety of securities such as stocks or bonds.
Most mutual funds and EFTs require you to have thousands of dollars to invest, but there are some great ones out there that don’t require much at all.
Invest with Free Stock with Webull
Webull is one of the best free stock trading mobile apps out there. The app offers free tools such as news, analysis recommendations, and paper-trading which means you can learn how to invest and trade without needing to use your actual money.
You can get one free stock with Webull valued up to $250 just for opening up an account with no minimum deposit required. Or you can get two free stocks valued up to $1,400 if you sign up here and deposit $100 or more.
Then you can watch those investments grow, or you can sell the stocks and cash out for the free money.
Invest in your future (Retirement Accounts)
A traditional 401k is a retirement account that is only offered by your employer and the contributions are pre-tax money. This means that you won’t have to pay taxes on this account until you start pulling it out when you retire (at the age of 59.5 or older).
Some companies might even offer company matching (where they will match your contributions up to a certain amount). Chances are, your employer will let you set up a direct investment to your 401k straight from your paycheck so you don’t need to continually watch the investment or manually add to it yourself.
You can contribute up to $19,000 per year into a traditional 401k account, but you do not have to contribute that full amount every year.
A Roth IRA is an individually owned account and you would be investing post-tax money which means you would be investing the money that is left over after taxes are taken out upfront.
You can contribute up to $6,000 per year into a Roth IRA, but again, you do not have to contribute the full amount.
Invest in Yourself!
Not to get super cheesy, but I truly believe the best investment is to invest in yourself! This could be through reading books, taking courses online, hiring a business coach, investing in a profitable side hustle, or even buying tools to help you start up your own business.
This obviously isn’t a passive investment… You will need to put in some time and effort, however, you can invest in yourself for fairly cheap and you can start earning money with your new skills and tools!
I have been working to improve myself for years and I have been able to acquire new skills and tools to help me make money through side hustles and passive income. It’s what lead me here to starting my blog!
I was also able to start up a successful eBay business (as a side hustle) for $500 and it now makes me about $2,000 a month by only working 5 hours a week!
As you can see, there are so many ways you can start investing with very little money starting out. This proves that investing is not just for millionaires, but also for anyone who is willing to do the research and get started.
Like they always say, the best time to invest was yesterday. The second best time is TODAY.
I would love to hear from you! Have you tried any of these investments? If so, what is your experience? Will you be looking into some of the ones I listed above? Let me know in a comment!
Hey there, welcome to my blog!
I’m Swati, a mom, a personal finance enthusiast, and the owner of TheBlissfulBudget. My work has been featured in major publications including Fox 10, Credit Cards, Cheapism, How to Fire, Databox & Referral Rock.
I help busy budgeters like you save and make money by utilizing simple yet effective methods that can create wonders.
My Mantra: You are entitled to live the life you desire, and financial bliss should be simple to obtain–check out my blog for helpful tips on acquiring wealth easily.