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!

Difficulty Level: Easy    Time Required: n/a

1. 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
2. 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
3. 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!
4. Enroll in your company's 401k plan, especially if they offer matching contributions. If you don't, it's like throwing free money away.
5. 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.
6. 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.
7. 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!
8. Good luck!
   

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