Do you need to already be rich in order to start investing? Like, if you make $50,000 a year and have $300 earmarked for the stock market, IS IT ENOUGH? Or do you need to wait until you crack $1,000 or more to start investing?
One of the best things about living during the “make everything digital” age is that investing is riding that wave too. Roboadvisors have erupted into the investing world and made investing in the stock market easier and cheaper than ever before.
Investing is a tried and true path towards financial stability, and ultimately, generational wealth. How do you think the Rockefeller’s have STAYED the Rockefeller’s for so damn long? Their deep and well managed investment portfolio!
So how much money do you need to start investing so you can begin to build your own Rockefeller money? Probably less than you think.
How Much Money Do You Need to Start Investing?
What You Need to Know About Investing
Investing at its most basic is using money to buy assets that bring you more money. Knowing that, it makes sense that you’d want in on the action.
But there are a lot of ways to invest and a lot of information to digest about investing! And that alone can be enough to stop you from getting into the warm waters of investing. In 2019 60% of Americans said they were afraid of investing in the stock market.
The more you can break down investing into bite size chunks, the easier it will be for you. We’ve decoded 6 common investing terms for you right here, and we’ve got a 30 minute workshop that walks you through investing 101 right here.
Knowledge is power baby!
Where to Start Investing
Before you transfer any real money from your bank account into the stock market you need a place to DO all this investing.
That place is called a brokerage and you have a plethora of options.
Just like you need to choose a bank to house your savings account BEFORE you put your money into savings, you need to choose a brokerage to house your investment accounts.
Fidelity, Betterment, Vanguard, Ellevest, Charles Schwab, WealthSimple…these are all brokerages. You can open accounts like IRAs or taxable brokerage accounts at each of them.
In our investing 101 workshop we tell you what factors to consider when picking a brokerage for yourself.
How Much Money You Need to Start Investing With
The answer to this question lies in which brokerage you pick and what exactly you’re trying to buy.
Certain brokerages, especially the roboadvisors, let you get started investing with small amounts like $5 or $10.
This is a huge win for anyone who is low income, or who has fluctuating paychecks or monthly income. (Shout out to all my freelancers and entrepreneurs!)
If you need help finding some money to invest with in your monthly income remember that budgeting is always and forever your friend. It will show you where your money is coming IN, where it’s going OUT, and how much you have to allocate towards investing.
Once you’ve chosen a brokerage and you know what their approach is to things like investment minimums, you should also check the specific investment or fund you want to buy. That might come with a separate investment minimum. Not all funds are managed by the same brokerage, even if you might be able to buy that fund at any brokerage.
What that means for you is there might be no brokerage minimum investment, but there might be an investment specific minimum investment.
Generally, you can get started investing with anywhere between $10 and $1000!
When Should You Start Investing?
My single biggest financial regret is that I didn’t start investing until after I paid off all my debt. I could have gotten started investing two years before I actually did, and that’s time I will never get back.
The longer you have money in the market, the longer timeline you have to build wealth. So if you’re waiting for a sign to get invested, consider this it.
Not to toot our own horn, but our investing 101 workshop will help you start investing pronto, and we walk you through
-what to look for in a good investment
-how the stock market works
-3 different retirement accounts to invest through
And we do that because we want to see you WIN. Ultimately, the longer you delay investing the less of a chance you have to build financial stability and then wealth.
Like I said before, my biggest financial regret is not investing sooner- don’t let it be yours too.