Should I invest even if I don’t have a lot of money

Updated: Apr 27

Simple answer is yes, you should try, for most people it’s the only way to build wealth.



Statistically I realize most people do not have funds available to invest,  but even modest investing can go along ways.  The good news is that as technology has improved so to has the barriers to investing broken down.  Unfortunately there was a time when you could only invest in mutual funds (with high fees) and stocks through brokerage firms and banks and more often than not the barriers to entry where high. Sometimes you would need a minimum of $1000 or higher just to use their services.   Today with the technological advances in banking we are finding that people with even modest incomes and savings can build their wealth and get reasonable good returns.    


“Even a small amount can build wealth over time”  

Look, we all have circumstances that are unique and different from everyone else,  so the ability to commit to investing and the amount of money available will also be different, however regardless of where you are at in life,  Investing to build wealth is something you seriously need to look into.  I fully understand that you may feel overwhelmed and uncomfortable because you’re not an investment guru but that’s ok, because today there are many options available to help you. For example there are many companies providing micro investing opportunities, which is a way to build wealth a few dollars at a time as well as low barriers to entry for opening up a low cost trading account to buy and sell exchange traded funds (ETF’s), mutual funds and stocks. 


With these types of services now available has allowed users of the new services to purchase ETF’s (Exchange Traded Funds), in fact some apps go as far as allowing you to pick a few different types of ETF’s depending on your risk tolerance,  the benefit is that you do not need to be a rocket scientist in order to invest and have reasonably good returns.  If for example you open a low cost trading account,  you can pick an S&P ETF,  you will match the market returns which is phenomenally better than just sitting on cash over a long period of time. 


Cash is still important and not investing every cent you have is also good advice because stock markets go up and down and if you need cash soon, investing may not be a good idea. However keeping cash or short term deposits, even if you utilize a high interest savings account will decrease in value over time if your interest rate is lower than the inflation rate. If you want to keep all your money in cash I would only suggest using a high interest/ no fee savings account over a regular account paying low interest, however you need to understand this will not help you build long term wealth.


The hardest part for many is the risks involved in investing, however it’s this hesitation is what holds people back and denying them the chance of building up their wealth.  I can understand,  many people over the years have lost a bundle on a number of companies whose value went to zero,  however ETF’s are broad-based, include many stocks and eliminates the single stock risks, so you are not investing you money into one business.   Spreading risk is key, yes you can get lucky if you buy a particular stock, but you could lose a lot if you do.    


Investing is important even if you do not have a lot of money, the good news is micro investing seems to be a very good option, but those who want to try on their own can open up a low cost trading account with a major company providing those services,  however keep in mind, if you decide to buy stock in single company you can risk losing money, and much more than through an ETF, however if you’re lucky you could make significant money.   In the end the risks associated with what your willing to lose is up to you, but there is very easy and simple ways to build wealth and invest without investing a lot of money or losing money to fees.




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