If you are have ever thought about investing but you have put it off for another time, chances are you felt that you didn’t have enough money to get in the game, or you figured you wouldn’t make a huge difference to your net worth by investing the little that you could spare anyway. Nothing could be further from the truth. There is no set amount of money that you need to start investing. Although different types of investments have different minimum deposit requirements, there is an investment that you can start regardless of how little you have to invest. The trick is to match your money to the right instrument so you can get the best return for your money.
Investments You Can Start With $25
With GoalMine you can invest as little as $25 a month into an account that is backed by exchange traded stocks or bonds. There are fees attached but if you want to get started with a small amount of cash this could be worth your time to investigate.
Investments You Can Start With $50
Lots of mutual funds allow you to start an account with as little as $50. This is a great opportunity because a mutual fund gives your money exposure to a diversified range of stocks that are listed on the market for only a small investment. Two of these mutual funds are T Rowe Price and Franklin Templeton Investments. Both of these mutual funds have no associated upfront fees which means that if you start your mutual fund account with $50 you can invest the entire sum without the company taking a cut out to cover fees.
Investments You Can Start With $250
If you have $250 to play with you can place it in an index fund which is a type of mutual fund that tracks one of the major indices or exchanges. An index fund that tracks the S&P 500 has a record of earning an average return of ten percent which is pretty great for such a small investment.
Investments You Can Start With $1000
If you can manage to put aside $1000 a month you can start a retirement fund account, an index fund or buy stocks directly on the market by opening a brokerage account. The sky is the limit with this much money but you should take the time to assess each investment type before jumping in simply because you can.
The bottom line is that investing a little money is much better than not investing at all. Translation; even if you need to start with $50, the key is to get started and the returns will build as your efforts increase over time.