A lot of people think that investing is only for the rich and for those with specialized knowledge of investing after spending hundreds of hours learning all about investing. Nowadays, investing is as easy as it could ever be and the best part is that you don’t need thousands of dollars to get started. You can decide to invest a small amount and gain a lot from it as it grows with compound interest.
You need to understand that for you to build wealth, you may need to change and develop good habits that get you closer to your goal. One of such habits could be to save a certain amount of money every month for the purpose of investing. To save you some money, you could cut down on eating out and prepare a meal at home instead, then use that extra money to start investing.
There are a lot of different investment options for beginners to choose from. You could make use of a robo-advisor or even a stock trading app to learn, get started with investing, and grow your money.
Here are three easy investment plans for you to use to start investing and grow your wealth.
1. Put away a small amount regularly
It’s possible that saving doesn’t come easily to you, and for others, it’s possible that they barely have enough to save. But the trick here is to set aside a small amount of money that you may not even think of as consequential. Doing this will not take as much time as you think it will. You could start by saving $10 every week. This would result in a little over $500 at the end of the year. The money you save could be stored in any kind of container you can find around the house. Just make sure that you save. If you prefer to do this electronically, you could decide to make use of an online savings account or a savings app that prevents you from withdrawing it until a set date.
The aim of this is to invest the money that you save and earn a return on investment (ROI).
2. Invest with Robo-advisors
Robo-advisors make investing simple and accessible by investing your money in a diversified portfolio of bonds and stocks. To do this, it first asks questions in order to determine your risk tolerance and financial goals before going ahead to invest. Algorithms are then used to rebalance your portfolio continuously and optimize it for taxes. Although robo-advisors are not free, they are cheap and worth it for every investor that would like most of the work to be done for them. To avoid paying this fee, you can simply build your own portfolio of mutual funds or exchange-traded funds (ETFs) if you are up for the additional work. You can check out Betterment, Wealthfront or M1 Finance if you would like to use robo-advisors.
3. Use the little you have to invest in the stock market
Another easy investment plan is using what you have now to invest. This helps you to learn about investing without the risk of losing a lot of money. The internet has made it possible for you to start investing with a little money before deciding to put more money into it and you are able to do this without being charged a trade commission. You also have the ability to invest in companies with fractional shares. This enables you to have a highly diversified portfolio and invest in high-priced stocks. So, instead of having to cough up the cost of a full share of a company which may be in the range of $300 to $500, you could simply get a fraction of it.
Other easy investment plans you should consider are also ways that require you invest very little money. They include real estate crowdfunding, investing in an employer-sponsored retirement plan, low initial-investment mutual funds, and treasury securities.
The Bottom Line
Investing is no longer a tedious, complex or money demanding process that only a few are able to partake in. There are many ways to get started with a small amount of money including the use of online platforms that simplify the whole process. You just have to be disciplined with saving, and pick an easy investment plan for beginners that will help you grow your wealth. You just need to start and you won’t regret investing in your future.