Are you one of those people living with the notion that you need a lot of money to begin investing? Well, that may have been a reality years ago. But, now, with niche-type investment platforms exploding in recent years, you can begin investing with as little as $5.<\/p>\n\n\n\n
Sounds interesting? It has to \u2013 seriously!<\/p>\n\n\n\n
Well, to begin with, you\u2019ve got to start somewhere\u2014heard that before? And $5 is not a hard place to start. <\/em>Because it\u2019s not so much about the amount of money you have to invest, but the amount of time your money is invested.<\/p>\n\n\n\n For example, you\u2019re 25 years old, and you have so little extra money in your budget that you decide not to bother investing at all.<\/p>\n\n\n\n You decide to wait until you have $10,000 to begin investing<\/a>. Unfortunately, as life tends to go, you\u2019re 50 years old before you have that kind of money. You end up investing it in a balanced portfolio of stocks and bonds, with an average annual return of 7%. By the time you\u2019re 65, your $10,000 only grows to $27,591.<\/p>\n\n\n\n But let\u2019s just say you chose a different course because you don\u2019t have a lot of money. But you somehow manage to save $5 twice a week ($10 a week) to invest, or about $500 per year.<\/p>\n\n\n\n You then end up investing $10 per week for the next 40 years, with an average annual rate of return of 7% on your money\u2014want to guess how much you\u2019ll make?<\/p>\n\n\n\n Your bank account will look big and juicy with $103,586 by the time you reach 65.<\/p>\n\n\n\n So don\u2019t wait until you\u2019re 50 to begin investing. Start now and start small \u2013 you will end up with way more than you invest by the time you turn 65.<\/p>\n\n\n\n The other dynamic involved in investing with $5 is building a financial habit\u2014and it\u2019s powerful. The sooner you embrace investing as a financial habit, the better it works for you.<\/p>\n\n\n\n You may start with something as small as $5. But when you start getting used to investing $5 consistently, your investment plan is in motion and your motivation will increase. Soon you\u2019ll be contributing $10 per week, then $20 and then $50 and so on. <\/p>\n\n\n\n To get your investment plan in motion and your favor, just start with $5. From there, carve out more room in your budget. And over time, as your income increases, you\u2019ll be able to increase your savings and investing<\/a>. <\/p>\n\n\n\n But all of that happens only when you get started.<\/p>\n\n\n\n No promises of the sun, the moon, and the stars here. But know that $5 is enough to start investing<\/a> on some popular platforms. But since you\u2019re starting small, your options will be limited.<\/p>\n\n\n\n The best platforms, to begin with, are micro-investing apps and Robo-advisors. They\u2019re designed specifically for small investors. <\/p>\n\n\n\n With just a few dollars, a micro-savings app, or a Robo-advisor, you\u2019ll be able to design a fully diversified portfolio. All you need to do is fund the account regularly.<\/p>\n\n\n\nTurn $5 into an investment habit<\/h2>\n\n\n\n
Where can you invest $5?<\/h2>\n\n\n\n
Save with Beem<\/h2>\n\n\n\n