Being self-employed, I am responsible for my own investments. I don’t have a company setting me up with a 401K or annuity — it’s all on me. I wanted to figure out how to invest with a little money since my pay is never predictable.
My husband is in the union and has benefits, but I can’t shake the fact that I don’t have anything of my own set up for retirement. I know we are married, but my mind is wired to be independent AF and I feel the need to contribute in all financial aspects of our life.
When things are going well with my business, it’s easy to think I can throw a chunk of money into an IRA or special bank account, but then things slow down. So far, in the seven years of me working for myself, things have never been steady enough for me to part with large amounts of money at once. Plus, something always comes up. Like, our washing machine dies, or a portion of our fence falls down. Expenses comes up; that’s just the way it is.
How to Invest with a Little Money Effortlessly
How to invest with a little money to soften the blow? Micro-investing. I cannot even remember where I came across the Acorns app, but I hopped all over it. I am not being paid to write about the app. It’s just something I found and now use and thought other people might like, as well. I am using a referral link that will give us both $5.00 though! The idea is that they round up your purchases to the nearest dollar and invest that amount. So, if you buy something for $5.62, Acorns will invest .38. You link your credit card(s) to the app, and it’s all automatic. You remain in control. It’s up to you if you want the roundups to automatically invest, or wait for you to push the little acorn to approve it.
Now that I have used Acorns for a few months, I can tell you the pros and cons. I can also update that the app was suggested by a few woman entrepreneurs at the Women’s Dream Conference. That made me feel a lot better about investing my pennies with Acorns.
Pros
- Effortless – If you set the roundups to automatic, you don’t have to do a thing. Invest more or withdraw with the simple push of a button, too. The money comes out of your bank account – not as an additional credit card charge.
- Detailed – The reports are detailed and tell you exactly where your money is going. It’s funny to own .03315 shares of a stock but I proudly do!
- Diversified – Choose your level of risk and Acorns invests your money accordingly. Mine is spread out between government bonds, corporate bonds, large stock markets, small stock markets, emerging stock markets, and real estate stocks.
- Opportunity – As I said above, I don’t have a huge amount of money to toss into investments. Acorns and their ability to micro-invest allows me to invest with a little money and I am grateful for that.
- Earn – Invite friends like I am doing now and you both get $5 in your account. There is also “Found Money” where brands that have partnered with Acorns will deposit a percentage of cash back into your account.
Cons
- Fees – I realize fees are necessary. Trust me; I understand that nothing like this can be free. However, I didn’t do my homework, so I was surprised when a full dollar was deducted from my account. When you are dealing with pennies, $1 is a lot of money. I had a whole whopping $17 in my account when that dollar was deducted — felt like quite a blow. LOL
- Found Money – I don’t feel like this is all that clear. When you click on this section, it shows you the participating retailers and an option to “shop now.” I didn’t realize you have to use a credit card linked to your Acorns account for it to register. I guess that should be common sense, but I didn’t even think of it. I thought clicking through their link and shopping would be enough.
So far, I obsessively check my Acorns app. However, I think it would be best to set it and forget it. The stock market fluctuates quite a bit, and you have to think of the long game here. Don’t let little dips scare you away. The idea is to invest for the future, not day trade. Overall, I love it, and I am happy that I found a way to invest with a little money.
Join Acorns for yourself — sign up here and we will both get $5.
Have you ever used an investing app? Do you have any tips on how to invest with a little money?
FAQs
Best ways for beginners to invest money
- Stock market investments.
- Real estate investments.
- Mutual funds and ETFs.
- Bonds and fixed-income investments.
- High-yield savings accounts.
- Peer-to-peer lending.
- Start a business or invest in existing ones.
- Investing in precious metals.
What is the best way to invest small amounts of money? ›
Six ways to invest with little money
- Drip-feed your cash into investments. You don't need to have a lump sum to start investing. ...
- Buy an index tracker. ...
- Use a robo-adviser. ...
- Mitigate your risk. ...
- Invest for the long-term. ...
- Open a high-yield savings account.
How much money do I need to invest to make $3 000 a month? ›
Imagine you wish to amass $3000 monthly from your investments, amounting to $36,000 annually. If you park your funds in a savings account offering a 2% annual interest rate, you'd need to inject roughly $1.8 million into the account.
How to invest $50,000 dollars for quick return? ›
7 Ideas for How to Invest $50,000
- High-Yield Cash Account. Considered one of the safest investments, a high-yield cash account can potentially keep your money safe. ...
- Tax-Advantaged Investment Account. ...
- Taxable Investment Account. ...
- Real Estate. ...
- I-Bonds. ...
- Precious Metals. ...
- Alternative Assets.
How much money do I need to invest to make $1000 a month? ›
To make $1,000 per month on T-bills, you would need to invest $240,000 at a 5% rate. This is a solid return — and probably one of the safest investments available today. But do you have $240,000 sitting around? That's the hard part.
How to turn $500 into $1,000? ›
- Invest in Real Estate. ...
- Invest in Stocks. ...
- Consider in Real Estate Debts. ...
- Try Flipping. ...
- Start a Business. ...
- Use a High Yield Savings Account. ...
- Invest in Crypto. ...
- Lend and Earn: Peer-to-Peer Lending.
What is the simplest thing to invest in? ›
7 easy ways to start investing with little money
- Workplace retirement account. If your investing goal is retirement, you can take part in an employer-sponsored retirement plan. ...
- IRA retirement account. ...
- Purchase fractional shares of stock. ...
- Index funds and ETFs. ...
- Savings bonds. ...
- Certificate of Deposit (CD)
What if I invested $100 a month in S&P 500? ›
It's extremely unlikely you'll earn 10% returns every single year, but the annual highs and lows have historically averaged out to roughly 10% per year over several decades. Over a lifetime, it's possible to earn over half a million dollars with just $100 per month.
How can I invest 1000 dollars for a quick return? ›
Here's how to invest $1,000 and start growing your money today.
- Buy an S&P 500 index fund. ...
- Buy partial shares in 5 stocks. ...
- Put it in an IRA. ...
- Get a match in your 401(k) ...
- Have a robo-advisor invest for you. ...
- Pay down your credit card or other loan. ...
- Go super safe with a high-yield savings account. ...
- Build up a passive business.
What salary brings home 3000 a month? ›
Annual / Monthly / Weekly / Hourly Converter
If you make $3,000 per month, your Yearly salary would be $36,000.
You can retire comfortably on $3,000 a month in retirement income by choosing to retire in a place with a cost of living that matches your financial resources. Housing cost is the key factor since it's both the largest component of retiree budgets and the household cost that varies most according to geography.
How much money do I need to generate $5000 a month? ›
To generate $5,000 per month in dividends, you would need a portfolio value of approximately $1 million invested in stocks with an average dividend yield of 5%. For example, Johnson & Johnson stock currently yields 2.7% annually. $1 million invested would generate about $27,000 per year or $2,250 per month.
How can I double $5000 quickly? ›
To turn $5,000 into more money, explore various investment avenues like the stock market, real estate or a high-yield savings account for lower-risk growth. Investing in a small business or startup could also provide significant returns if the business is successful.
How much interest will $50 000 earn in a year? ›
The interest you can earn on $50,000 in one year can range from $2,125 to $3,000 depending on the interest rate.
How do you invest $1000 dollars and double it? ›
If your employer offers a 401(k) with matching contributions, it's entirely possible to double your $1,000 investment. How much money your company matches will vary, but many offer to match half or even all of your contributions. If they offer 100% matching, you can double your money in no time.
How to wisely invest $100? ›
What are some low-risk ways to invest $100?
- High-yield savings accounts. Compared to traditional savings accounts, these accounts offer higher interest rates, which can help your money grow faster.
- Certificates of deposit (CDs). ...
- Treasury bonds.
How can I invest $500 dollars wisely? ›
On this page
- Invest with a robo-advisor.
- Contribute to a 401(k) or IRA.
- DIY with commission-free ETFs.
- Buy fractional shares of stocks.
- Buy bonds.
- Invest In real estate.
- Pay off debts.
How can I start investing with little as $1? ›
Let's dive in.
- Beginners with little money should find an exchange that offers fractional investing. ...
- If your capital is limited, consider investing in blue-chip or dividend stocks to start. ...
- You can also pick a market-wide ETF to build your baseline. ...
- Once you get some returns on your dollar, sell and diversify.
How can I invest $10 and earn daily? ›
If you want to invest $10 and earn daily, opening a high-yield savings account is a great option. High-yield savings accounts offer higher interest rates than traditional savings accounts, which means you can grow your wealth faster. These accounts are also a safe place to keep your emergency fund.