Let’s Talk Investing (Beginner Level)
I was talking to a girlfriend of mine the other day and she was asking me about investing and what I do and how I decide to invest and she posed the questions, “But how much is too little to invest?”
I stopped to think about it for a moment because it was a good question and not really something I’d considered.
But now that I’ve thought it over, I have realized that there is no amount that is too little to put aside into an investment accounts.
I think a lot of people find these types of accounts to be scary. And, the big investment firms don’t make it easy for people to get involved. There are some insane minimums sometimes that can make investing really difficult for people to want to get involved in. They’ll think to themselves, “Well, I don’t have $1,000 right now to invest, so I better not invest anything.”
That’s the wrong mindset to have. I wrote a few weeks ago that it takes 15 minutes to set up a Vanguard Account – literally, 15 minutes of your time assuming you know your social security number off the top of your head. And there are NO MINIMUMS to set up something like a Roth IRA for yourself. I started one and just tossed in $25 to start and figure I’ll set up a small recurring contribution of $25 and then dump money into it as I have extra at the end of the month or if I receive a bonus check or something.
There are lots of apps nowadays that make investing super easy to do, as well. My husband’s Roth IRA is through ScottTrade and he has an app on his phone that lets him manage contributions and watch his money grow.
I have written about Acorns before, but it’s a really great “set it and forget it” investment opportunity where you could set it invest as little as $5 a week and just let it grow as it does its thing.
In fact, I’d argue that starting with a smaller amount of money to invest would actually be a good idea. It gets you used to the idea that you are doing something positive for yourself (saving money away for the long-term) and allows you to become comfortable with the idea of investments in general and allow you to educate yourself and read up on the concept at your leisure.
So, no, there is no amount too small to begin investing with. Jump in! Get your feet wet! Just do it.
And remember – your future self sucks – so anything you can do for yourself NOW to better your situation in the future is going to be worth it. Majorly.