Can I Start Investing With Little Money?
Investing in an account will require you to save up tons of dollars. If you are having a hard time
saving up, keep in mind that you do not need a large amount of money every time you save in
order to start investing. Things are quite different today because you can now start even if you
have little money to invest.
Direct stock purchases- if your goal is to invest in individual companies then you have
direct purchase plans as an option. And it literally means that you get the stocks directly
from the company. Not all companies offer direct purchase plans, so this may limit you
out a bit. But the good news is that there is no need for a brokerage account and a
middleman. You will be working straight to the company. Companies are also not
allowed to advertise about these plans so you have to be the find to look and ask for it.
Visit the company’s website and brows through their investor relations and find out if
they offer a direct purchase plan and if there’s a way for you to get in it. The benefit you
get from direct purchase planning is that you don’t have to pay a large commission to a
broker and you have the ability to buy just fractions of the company’s shares.
Another way for you to start investing with less money is to sign up online to build your
portfolio for as low as $ 4 and you will the help o an automatic investment plan. But do
not forget that they may ask fees from you and may even enforce account restrictions,
but they again, it Is still a good way to investing even if you don’t have enough money.
There are companies out there who are offering low minimums however; their minimum
is already $ 3000. Good thing there are no-load fund companies who are helping out
new investors and they don’t require very high limits. You can start investing even with
just a $ 100 on hand.
Even though you can start investing with little money, your credit score will matter too.
Companies will check it to see if it’s in good shape. Monitor and get your free credit score report
regularly and you’ll have less problems to deal with in the future.
Before you think of buying a house, switch to credit union and start keeping a close check on
your credit score. Get your credit report online & keep your credit score good for happy financial