How Do I Start Investing With Little Money?

You can start investing anytime. You don’t need large dollar amounts to make it worth your while. Here's how you can begin your investment journey:

Establish a Foundation- More Here

Before diving into investments, ensure you have a solid financial base:

1. Build an emergency fund covering 3-6 months of living expenses.

2. Pay down high-interest debt, particularly credit card balances.

Start Small and Consistent - More Here

1. Begin with as little as $25 per month. I like weekly or even multiple per week, getting your dollars that can be spent, out of sight and out of mind.

2. Focus on creating a regular investing habit rather than the amount.

3. Utilize automatic contributions to maintain consistency.

Choose Low-Cost Investment Options - More Here

1. Consider index funds or ETFs that track the global stock and bond market indices.

2. Look for brokerages offering no-minimum investment accounts.

3. Explore micro-investing platforms that allow small, frequent investments.

Wall Street loads up on surprising $2.1tn asset class

Bank of America. UBS. JP Morgan. They’re all building (or have already built) massive investments in one $2.1tn asset class—and it’s not what you think. It’s not private equity or real estate, but fine art. Why?

In partnership with Masterworks, data from Citi shows it’s a potent diversifier with low correlation, and certain segments have even outpaced traditional investments. Take blue-chip contemporary art, which has outpaced the S&P 500 by 64% (1995-2023).

Masterworks knows the power of art investing, with their platform giving 900k+ users the opportunity to invest in this asset class as part of their overall portfolio strategy. In fact, from their 23 exits so far, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8%, and +21.5%* (among assets held for longer than one year).

With so many users, Masterworks offerings can sell out quickly.

Our readers can diversify right away by clicking here to skip their waitlist.

Past performance not indicative of future returns. Investing Involves Risk. See Important Disclosures at masterworks.com/cd.

Diversify Your Portfolio - More Here and Here

1. Aim for a simple, diversified portfolio, again low-cost.

2. Consider a mix of US stocks, international stocks, and bonds.

3. Many models are available providing global diversification and that rebalance automatically.

Leverage Retirement Accounts - More Here

1. If available, contribute to a 401(k) at work, especially if there's an employer match.

2. A Roth IRA if your income allows (back-door Roth if not) can help you get tax-free long term growth.

3. A Roth 401k is great if you earn too much for a Roth IRA but want tax-free growth.

4. Health Savings Accounts can be used as yet another tax free growth asset that is also tax deductible upfront.

Educate Yourself - More Here

1. Read investment books like "The Psychology of Money" by Morgan Housel.

2. Learn about financial news and market trends but don’t overdo it. The media is designed to create anxiety more so than to educate.

3. Use resources like Investopedia to learn investment terminology and concepts.

4. Obviously hiring a financial planner can provide you great educational value as well!

Remember, investing is a long-term strategy. Start small, stay consistent, and be patient as your investments grow over time. As your financial situation improves, you can gradually increase your investment contributions.