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Investing For Beginners: How To Invest With Very Little Money

Stefan James

If you’ve been telling yourself that it’s impossible to build an investment portfolio without a lot of money, drop that story.

This limiting belief prevents a lot of people from investing in their future. Every investor started somewhere, and so can you, with as little as $50.

In the words of Warren Buffet, “Someone is sitting in the shade today because someone planted a tree a long time ago.”

If you want to build long-term wealth, investing is the best way to do it. Are you ready to learn how to invest with very little money?

Everybody wants to make more money. However, not everyone knows how to do it. The culprit can be traced back to the education system. Instead of learning critical life skills, like how to manage money, kids are taught how to memorize information (most of which we end up forgetting).

“I’ve never let my school interfere with my education.” — Mark Twain

Knowledge is a powerful tool. However, I don’t believe that schools adequately prepare young people for the real world. When it comes to the number of people who don’t know how to invest, these statistics say it all:

  • 42% of millennials have not begun saving for retirement.
  • 52% of Gen Xers have less than $10,000 in retirement savings.
  • About 30% of respondents age 55 and over have no retirement savings whatsoever.
  • Nearly 75% of Americans over 40 are behind on saving for retirement.

In my experience, the key to building wealth is developing good financial habits from an early age. Doing so gives you the confidence to start somewhere. Many surveys and studies show that the earlier you invest, the richer you get.

I regularly put money aside every month which taught me the value of financial independence and budgeting. I made it a habit, which over time, allowed me to slowly built up my investment portfolio to where it is today… at $6 million dollars.

In today’s world, you can’t rely on a steady paycheck to support you. This is why I’m a big believer in diversifying my income so that I protect myself and my finances.

If you are only looking for a get-rich-scheme, investing isn’t for you. If you go into any money-making venture with the assumption that money will come fast, you will fail.

Do some people get rich quick? Of course, but it’s extremely rare. When it comes to investing, you’ve got to be in it for the long-term.

In the words of Paul Samuelson, “Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.”

By no means am I an expert at investing. My goal is merely to share with you what has worked for me, in the hopes that it will inspire you to start building an investment portfolio.

Here are 3 ways to start investing with very little money.

A lot of people struggle with basic money management skills, so much so that they end up racking up a ton of debt from an early age.

Before you can even start investing, you’ve got to take a close look at where your money is going every month. How you can start reducing your expenses?

Once you have an idea of how much money you are spending, start creating a realistic budget that works with your lifestyle. Budgeting is what allowed me to slowly pay off my credit cards so that I could become debt-free.

Living within your means isn’t always fun, but if you want to create long-term wealth, you’ve got to learn how to be smart with your money.

An emergency fund is a reserve of money you set aside to cover any setbacks that life throws your way. This could be in the form of an accident, an injury, a layoff, or a natural disaster. Being prepared is the name of the game.

Think of this fund as an investment in your financial security. More importantly, it will provide you with a solid foundation upon which you can start investing in your future.

There is no fixed rule as to how much emergency cash you will need. However, to be safe, I encourage you to plan for 3–6 months worth. Once you determine what the number looks like, start saving!

Who I am today is the direct result of the time, energy and money that I’ve invested in myself. To date, I’ve probably spent over $100,000 on my personal growth.

I’ve worked with dozens of coaches, gone through hundreds of online training programs, and I have easily attended over 100 seminars.

Like any good investment portfolio, the best investments you can make in yourself are focused on the long-term. I like to think of personal growth as an act of planting a seed for your future.

You aren’t going to see the fruits of your labor right away. However, if you slowly water that tree over time, the roots will start to develop. Eventually, that tree will start to sprout and create a strong foundation that will serve you well.

“You will never go broke from investing in yourself.” — Unknown

The more that you can invest in yourself today, the more successful you will be in the future. Your life won’t improve unless you improve yourself. This is why YOU are the most important thing that you can invest your money on.

Start reading books, take online training programs, watch YouTube videos, and listen to podcasts on investing. Learn from the people who have achieved the financial success that you desire.

Investing small amounts of money can result in big rewards. I encourage you to make investing a habit now. If you do, you will set yourself up for financial success.

Are you ready to start investing in your future?

Thank you for reading! If you liked this article, please give it a clap.

Feel free to leave a comment below. Follow me on Instagram, Twitter or check out my website, Project Life Mastery!


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