Many people have not invested even once in their lifetime because they think that they do not have enough money to invest. But this is a common misconception, as you do not need thousands of dollars to become an investor. Today, there is no barrier, so you can start investing with any amount of money that you have. Technology has made everything possible, you can order your food or clothes just by swiping, and with a stock trading app, you can start investing with your little money. There are different options for investing, and it has become much simpler for beginners. If you are a beginner and you want to start investing, here’s an Investing 101 guide for you:
The First Step Is To Save Up Some Amount: If you want to start investing, the first step is to start saving. However, it does not mean that you will have to rearrange your lifestyle. All you have to do is make some small changes, and put aside some small amount every week or month. If you follow this approach, slowly and gradually, you will have some amount in your savings from which you can start investing.
Create a Pre-Investment Account: To start investing, you will need some cash available. Yes, you can start investing with a few hundred dollars or thousands, but this may limit your stock market option. So it is best to cave up some money. And to do this, you can open up a savings account, consider it as a pre-investment account. You can then start saving, slowly and gradually by setting aside some amount from your payroll every month.
Start Investing In The Stock Market With The Little Money: You may be thinking that the cost for entry to invest in the stock market will be a barrier, but that is not the case. It is possible to get started with a very little upfront amount, this means that you can put in a few amounts so that you can get familiarized with investing before you start putting in a bigger amount. Today, there are many opportunities out there where you can get started without having to pay any charges for commissions. In the past, stockbrokers used to charge several dollars each time you bought or sold stocks, but today, you do not have to pay for any charges.
Consider the Real Estate Market: You can also start investing in the real estate market, you do not need a lot of money or even good credit to do this. Real estate crowdfunding makes it possible to own small shares of large commercial properties without becoming a landlord. Although you should note that, this investment requires a larger amount of minimum investment. And they are also riskier as you will be putting all the amount in one property instead of broadening your options like in the stock market. But the benefit is that you own a piece of physical real estate, which is not the case with the stock market.
Retirement Plan: You can begin investing in an employer retirement plan, even if you have a very little amount to set aside. Even if you decide to contribute just a small portion of your salary, you can gradually increase it. And even if you are contributing a small amount, when you file your tax, you are eligible to get a tax deduction for this. Yes, you can slowly and gradually increase your contribution, but if you are also getting a hike in your salary, you will not have to set aside much.
Even if you have very little money, you can start investing as there are many online and app-based platforms which makes it easier for beginners to begin investing.