How To Invest With Little Money (Just $50 Per Month)

This guide will show you how to get into the market and start growing your wealth — even if you only have $50.

Most people wait to start investing until they have a significant amount of money saved up. This made sense a few years ago. But now there are high-quality, zero-fee investment providers that let you get started for $50.

Should You Start Investing?

Before you start investing in the stock market, you want to make sure that doing so makes financial sense.

The number one reason why you shouldn’t start investing is high-interest debt. If you have high-interest debt like credit card balances, you should hold off on buying stocks.

What Type Of Investment Account Should You Open?

There are two primary types of investment accounts. 1. In a taxable account, any income earned is, as the name suggests, subject to taxes. That includes dividends and gains if you were to sell.

2. With retirement accounts, such as IRAs and 401(k)s, taxes may be deferred (so you owe less today) or paid upfront so your investments can be sold tax-free during retirement.

Different Ways To Invest In Stocks

You might be thinking that you want to take your $50 and invest it in a company like Amazon, Facebook or Tesla. But if maximizing your returns is your goal, that may not be in your best interest.

Few investors, including professionals, are able to pick individual stocks and beat the market. They might get lucky once or twice, but study after study has shown that few succeed in the long run.

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