How To Invest A Small Amount Of Money, Even Your Pennies

We all aren’t millionaires, some of us aren’t even thousandaires…if that’s even a word. Anyhow, you can invest a small amount of money if your funds are stretched a bit tighter than others.

If you’ve never invested in anything before, consider first investing in yourself. As cliche as it may sound, this is a must.

What do I mean by investing in yourself? Knowledge, simple and pure.

Before you go giving your money away to anything, know what you’re doing. Almost all investing involves some sort of risk, and even if you only want to invest a small amount of money, you don’t want to just give it away.

Are your familiar with common financial acronyms and jargon? Terms like small-cap, ETFs, ROI, bull market and bear market got you scratching your head? Maybe these terms have nothing to do with what you do with your money, but maybe they do and you just don’t know it yet.

For those of you that refuse to invest in yourself first, you will soon find that life is harsh, but also usually the best teacher.

I highly recommend you read Rich Dad, Poor Dad. I can almost guarantee it will change your outlook on your job, investments, and even your life.

Save Your Change

Another means of investing in yourself is to save your money. If you use cash more than debit/credit cards, saving your loose change is a way to do this at a smaller level. At the end of the day drop all of your loose change in a piggy bank.

I did this for my daughter and saved her a little over $100 by the time she was 10 months old. Not the biggest nest egg, but she now has her own savings account accruing interest.

Some companies like Bank Of America have a “Keep The Change” program that does this with your debit cards. For example, if a purchase comes up to $5.40, they round the purchase up to $6.00, and deposit the extra $0.60 into your savings account.

Nice huh?

Invest Your Change

If you’re interested in getting into what I like to call “heavier” investing, I advise you check out the Acorns investing platform.

It’s very similar to the “Keep The Change” program above, but instead of putting it into a savings account, it deposits it into an investment portfolio.

You can choose how aggressively you wish to invest and how much exactly, but generally it keeps track of your extra change. Once your extra change totals $5.00, it can auto invest it for you with no fees.

Of course, like I said before, as with any investing there is risk, so do your research first.

Get A High Yield Savings Account

It’s always good to have your money working for you. Supposed you don’t want to risk your money in stocks or starting a small business. Some of us are fine with savings for rainy days.

Well I advise you get the most out of your money when you do it.

The MyOptimizerPlus account from Synchrony Bank offers a 1.05% APY savings account. My credit union even doesn’t pay half of that! A measly 0.15%.

The closest thing I was able to find on their website was a 3-year CD (Certificate Of Deposit, more financial lingo incase you need to do some studying)

How Would I Invest A Small Amount Of Money?

I actually do all of the above, in time you learn to make adjustments in your life without the little bit of money you’re putting away.

I will admit that Acorns is my favorite means of investing.

I wish you much success in your financial endeavors and hope that everything works out for you. And always remember that every cent counts!

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Dedicated to helping people find financial freedom. Whether it's a work at home mom, a student trying to pay for college, a small business, or just someone looking for a little extra income. We try to cater to the masses in helping them earn more money online and in life. Always looking for more opportunities to earn.

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Dollar Dojo
Dedicated to helping people find financial freedom. Whether it's a work at home mom, a student trying to pay for college, a small business, or just someone looking for a little extra income. We try to cater to the masses in helping them earn more money online and in life. Always looking for more opportunities to earn.

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