Many people make the mistake of thinking that investing is only for the rich. The truth is that investing is for everyone, and if you want to become rich, investing is one of the ways to get there. There are lots of ways to begin investing when you have a small amount of cash.
Way #1: Open a High-Yield Savings Account
Your savings account can be an investment tool. Everyone needs to build up some savings, so make sure you are making your savings work for you. Try to find a bank that offers a high annual percentage return on your investment, and also doesn't charge you any maintenance fees. That way, your savings will be earning you money, even if it is a small amount, the longer you don't tap into your savings.
Way #2: Use a Robo-Advisor
When you are just getting started, one way to dip your toes into the investing world is through robo-advisors. Robo-advisors are what they sound like; they are artificial intelligence systems that help you manage your money. Most robo-advisor websites or apps also use a team of human specialist as well to help figure out your portfolio. Many of these apps do not require you to invest a lot of money; you can get started with a relatively low amount.
Way #3: Hire a Registered Investment Advisor
As you save up a little more cash, hire a registered investment advisor to help you build your investment portfolio. A registered investment advisor is someone who has undergone extensive training and has extensive experience in the investing world. They will take into account your age, financial goals, and starting investment fund, and help you build a portfolio that works for your needs. You can consult with them throughout the year in order to steer your investments in the right direction. Working directly with a person is a smart move as you increase your investments; they can give you valuable advice and insight.
Way #4: Open a Retirement Plan
If you don't have one already, you should also open a retirement plan. Opening a retirement plan is a smart way to plan for your financial future. You may not be able to access your retirement fund until you reach retirement age, but it is a wealth-building tool you should take advantage of.
You don't have to be rich to invest and grow your wealth. Start by opening a high-interest savings account for your emergency fund. Then, start with some robo-investing apps and move on to work with a registered investment advisor. Finally, make sure you are putting money into a retirement fund as well.