How to Invest With Little or No Money
From your Investing for Beginners Guide
There are a lot of people who would love to begin investing but feel like they can't afford it. In this How-To, you'll learn valuable tips that will let you start no matter what your income is!
- Pay for things only in dollar bills. Take the change and put it into a jar; you'll be surprised at how much money accumulates. At the end of every month, put this into a savings account
- Enroll in a direct stock purchase plan. For example, if you only had $17.53 saved, you could send it to the direct stock plan and they would purchase fractional shares of stock for you. For more information, go to http://www.equiserve.com
- Reinvest your dividends! You hear me say this all the time, but it cannot be said enough! You will have a substantially larger portfolio over the course of ten or twenty years if you use the dividends to buy more stock!
- Enroll in your company's 401k plan, especially if they offer matching contributions. If you don't, it's like throwing free money away.
- If you want to invest in a mutual fund or open a brokerage account but can't afford the minimum investment, call and negotiate the price down with someone at the fund / brokerage house.
- Start immediately - you'll end up with more money if you put $2,000 in when you are 30 than if you put $5,000 in when you are 35. It's all about compounding... the earlier you start, the richer you'll become.
- Finally, just remember to keep your eye on the goal. Identify what it is you are investing for, whether it be a new house, a college education, or retirement. Saving money becomes a lot easier when you see the tangible reward for your efforts!
- Good luck!
More How To's from your Guide to Investing for Beginners