You can start your long term investment with small amounts of money. It doesn’t have to be a large investment. You can build your wealth over time. You can start out as low as $30. You can invest it in companies, mutual funds, or index like S&P 500. There’re thousands of companies out there that will allow you to invest with little amounts of money. When you invest with little amounts of money, you should try to avoid brokerage fees or else it’s not worth it. If you invest online each purchase could cost you $6 and you don’t want to invest $10 where you’ll only have $4 left. It’s not a good idea to pay too much fees.One of the best way to start investing is to find discount brokerage online and buy shares with them. Online companies will offer you less fees and flexibility. You can access your account any time and make orders any time too.
If you have small amounts of money you can put it in companies that allow direct purchases so you don’t have to pay brokerage fees. Other ways to invest small amounts of money are through Dividend Reinvestment plans or drips and direct stock purchase plans. If you use a broker, you’ll be paying a fee each time. The goal is to minimize your fees. You can slowly add to your account through an automatic plan and you don’t have to buy shares each time.
You can invest in index fund with as little as $250. There’s no fee for mutual fund since you buy them directly from the companies. If you have $500 you can invest in companies with discounted brokerage firm. Discounted brokerage fees are lower than full service brokerage fees. If you have $1000 or more you can invest it in individual company. If you invest year by year you’ll
have a lot of savings left for your retirement. It’s a good idea to start saving at a young age so you can build your wealth over time. It’s also a good idea to invest with a decent amount of money so you can spread your risk. The more money you save the more you will have for your future.
When you’re investing with little amounts of money you should aim at companies that can give you stability so that you can build your portfolio over time. What are some great companies to invest in? You can buy shares from Coca-cola, PepsiCo, McDonald’s, Colgate and many more. These companies will not fall any time soon and they’re some of the top choices by investors. If you have any debt you should pay it off because it’s not worth it to invest when you have interest rate piling up somewhere else.
Source: http://www.fool.com/investing/ brokerage/how-to-invest-20-100 -and-1000-and-more.aspx