How to Invest with a Small Amount of Money (Without Getting Scammed or Overwhelmed)

Let’s be honest: when you hear “investing,” you might think of Wall Street sharks or needing a lot of money. But here’s the truth: you can start making money with just $10. Really, no. If you want to save for a goal, establish a safety net, or just get your money out of a savings account, here’s how to do it without becoming lost in language or hazards.\

1. Begin Before You Think You’re Ready

There is never an ideal time to wait till you have “extra money.” With compound interest, also known as “money making baby money,” even $20 a month can add up over time.

2. Choose Your Battlefield Robo-advisors (set it and forget it):

Apps like Acorns or Betterment automatically invest your extra money. No stress and low fees.

Index funds (the lazy genius move): Funds like the S&P 500 put your money into hundreds of firms, which lowers your risk. Use apps like Fidelity or Robinhood to buy a chunk.

Fractional shares (for equities that cost a lot): Can’t buy a whole share of Amazon? Instead, get a piece for $5.

3. Don’t fall into get-rich-quick schemes

Cryptocurrency, meme stocks, and schemes that are “guaranteed”? No thanks. Stick with basic, safe investments until you know what you’re doing.

4. Make it easy

Make it automatic: Make a $10-a-week transfer to your investment account. You won’t miss it.

Round up purchases: Apps like Acorns put your extra change from your daily coffee trips into investments.

5. Get an education for free (no MBA needed)

Podcasts: The InvestED Podcast breaks down the basics of stocks like a friend would over drinks.

Books: For people who are just starting out, The Little Book of Common Sense Investing is the best book.

6. Keep your fees lower than your phone bill.

High fees take away your profits. Check for:

• Check the fund’s details to see if the expense ratios are less than 0.25%.
• No-commission trading (most significant brokerages offer this presently).

7. Don’t freak out (or check every day)

The market will go down. Don’t pay attention to the clamour unless you’re retiring next year. Time makes the bumps go away.

8. Celebrate Small Victories

First $100 put in? When will the first dividend be paid? Give yourself a high five. This is how millionaires get started, but with less fuss and earlier.