5 Easy Ways to Start Investing on a Budget

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With Covid-19 continuing to cause worldwide economic upheaval, times are tighter than ever for many of us. However, with so much turmoil in the markets, it’s also a remarkably profitable time for anyone looking for investment opportunities with real long-term value. Or maybe you just need to start putting some money away for a rainy day? Keep reading for some foolproof ideas on how to start investing in the stock market for beginners. With these investing tips, you can find out how to start investing money to become a successful investor and make your assets grow regardless of your personal budget.

1. The Cookie Jar Investing Method

The best place to start investing could be at home. While not a typical investment method per se, the “cookie jar” method could help you start saving every month. All you have to do is set aside a regular portion of your income that you save and never touch. You could start with as little as $10 every week.

Sounds small, right? However, investing this every week for a year will give you $500 better off. Even if cookie jar saving is just an accompaniment to your other investing plans, it will help cultivate a mindstate for smart investing and give you some liquid assets as a backup for when you need it.

2. Use an Online Broker

Thanks to the internet, anyone can play the markets these days, and, with some research and good timing, you can start investing to grow your cash exponentially. Due to the huge surge in popularity of online investing platforms, the brokerage industry has all but eliminated commissions on trades, which is great news for the little guy.

It goes without saying that playing the markets always has an element of gambling to it, and so the same common-sense rules apply: only try investing what you can afford to lose, and know when it’s time to cut your losses. Bear in mind that being a successful investor is a 24/7 responsibility, and you’ll have to keep yourself informed about market movements to make educated investments. Fortunately, there are plenty of resources online and books to start investing that you can research with. If you’re prepared to put the work in, there’s plenty of money to be made investing on a budget.

3. Use a Robo-Adviser

Even for the biggest brokerage firms and investing companies, a huge proportion of their operations are conducted by automated financial software. These programs crunch the numbers and do the heavy lifting to help execute investments with a maximum probability of success. Services such as M1 Finance and Ally Invest are the leaders in this field, and many people have found it convenient, not to mention profitable, to leave their portfolios in their automated hands.

All you have to do is decide how much to start investing and set the parameters for your investment goals, and the program takes care of the rest. A happy bonus of robo-advisers is that their fees are substantially lower for investing than their human equivalent, which also helps you with long-term savings.

4. Invest in Mutual Funds

If playing the markets feels too risky for your tastes, investing in a mutual fund is a less high-impact option that nonetheless has a very good chance of long-term growth. These portfolios comprise a spread of different bonds and stocks that you buy into with a single transaction.

You’re often guaranteed a certain percentage of growth over time, and since your investment will be constantly managed by professional financiers, there’s a far lower risk of your money going down the drain. Admittedly, the rewards are lower than other forms of investing, but mutual funds are a great way to start off your investing career with the added bonus of a safety net.

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5. Begin a Retirement Plan

Far too few of us think about saving for the autumn years of our lives. It’s an indisputable fact that everyone should have a retirement plan to ensure financial comfort in their later years, so start today. Your employer should offer a retirement contribution instrument like a 401k, and you’re unlikely to miss the small portion of your earnings that this skims off each paycheck. We would advise investing a respectable portion of your regular income, but even 1% of your pay every month could make all the difference to how you see out your retirement.

Conclusion: Invest Now, Win Later

When people talk about investing, images come to mind of Wolf of Wall Street types throwing money around the investing futures markets with abandon. Today, however, the landscape of investing has changed dramatically, and you’re far more likely to find the average person making some extra income online or saving up for the future. At the end of the day, investing is mostly a question of reorganizing your financial priorities to ensure maximum long-term gains.

There’s no best way to start investing, and you’ll need to find an approach that suits your financial objectives. It can be daunting to take your first steps, but new apps and software make it easier than ever before to make smart moves, and if you wait too long, it’ll be too late to grow your nest egg. Take that leap today.

Author’s Bio: 

Emily Moore is an English teacher with a passion for space and blogging. She believes that current exploration should be focused on preserving our planet’s resources. With satellites circling the orbit, it is easier to get relevant data on any environmental changes. This, in turn, should help people quickly address any challenges.