How to invest with little money
Let’s Debunk this myth from the start, you do not need large sums of money to learn how to invest. This commonly known myth has brought fear to a lot of people about getting started investing but what if we told you can start now with as little as 5 dollars! Don’t believe us? Keep reading to find out.
Here are 4 tips that will get you up and going fast.
Understand saving to invest
-Most of us were taught the importance of saving money but that is an outdated concept. Today you don’t only save for the sake of saving for a rainy day, but you save to invest! Inflation eats away at the value of your funds over time. So that means if you are not investing your money is losing value. The only way to combat this is to invest the funds you save. Make it automatic contact your banking institution or credit union to set up automatic transfers to your savings account each month.
Deal With High Interest Debt
– In an earlier post you can read by clicking here, we outline why it’s important to clear off high interest debt. High interest debt from credit cards and demand loans can cost you precious dollars you can direct towards investing. Consider clearing your high interest debt before starting to invest.
Pick the correct investment vehicle
– It’s very important to pick an investment product that has low risk when investing with small amounts of money. Treasury bills, mutual funds and even a shares account at your local credit union are relatively safe investments that will bring stable returns over time.
Consistency is best
-Investing small sums consistently is better than investing larger sums seldom. $100-$200 saved every month over time builds up to a considerable amount money with the magic of compound interest. So instead of waiting for a financial windfall to start investing, automate investing small amounts on a consistent basis.
Implementing these 4 easy tips will help you to get you started on an investing strategy in no time. Use Lambeau Credit Union’s shares account for investing with steady returns and low risk. Become a member today!