If you shy away from investing because you believe you don't have enough money to invest, you’re not alone. Despite the fact that you’re in good company, it’s just not true that you need a lot of money to be an investor. Give your investments time, consistently contribute to them, and that’s how the magic happens.
How to Invest $10
If you've never given investing much thought because you can barely stretch your paycheck to the end of the week, it's likely because of some common culprits: student loans, credit card debt or just regular life expenses.
However, if you’ve used your favorite budget app and can come up with a spare $10 a week, here are a few ways you can turn that $10 into an amount with a few more zeroes on the end of it:
- Savings account: There is little return on a savings account right now (the average interest is less than one percent) but think of it as a parking place for your $10. If you add $10 a week for a whole year, you’ll have a whole $520 - a game-changing amount.
- Invest in some reading materials: While you are contributing to your savings account, get your head in the game and learn a little about investing. There are many investment strategies for newbies, but there is a learning curve. You only get the opportunity to be a beginner at something once. So, revel in the excitement and dive in. Here are some great books to get you started.
- Try MoneyLion: When you use MoneyLion, you can start investing small. An Investment Account allows you to “set it and forget it.” You can also use MoneyLion Crypto to get into the crypto market without spending too much money.
How to Invest $100
Say you’ve gotten a small raise that will net you $100 extra a month. It’s a snap to figure out how to effectively invest $100.
Retirement: Most employer-sponsored retirement plans will allow you to contribute a percentage of your paycheck or a fixed dollar amount. The advantage of investing your extra $100 in your retirement plan:
- Employer-sponsored retirement plans are typically well-diversified. While there is some risk, your investment should grow over the long haul.
- Employers will often match the amount you’re investing for retirement. Make sure you know what that match percentage or amount is. You’ll want to do everything you can to get your hands on free money.
You have pre-tax and after-tax options. Let us help you.
How to Invest $1,000
If you’re still carrying debt – credit cards, student loans or any debt that is costing you money every month in the form of interest, $1,000 could go a long way to pay that off. In the long run, getting rid of that interest will put money in your pocket. If you’ve got your debt under control, here are a couple of alternative options:
Invest in an ETF, index fund or mutual fund: Many brokerages require somewhere around $1,000 (sometimes brokerages or robo advisors require less) to open an account. Benzinga has a comprehensive list, and any of these online brokerages are great choices. Start a college savings plan: If you have a family or are planning on it, $1,000 is an excellent start for a college savings plan. College savings plans differ from state to state, so do your homework.
How to Invest $10,000
With a $10,000 investment, you have options, and you’ll want to be strategic about your portfolio and make sure it’s well-diversified. Select a broker: Before you get into the details of setting up your portfolio, you need to select a broker.
- How hands-on do you want to be with your portfolio?
- How comfortable are you with technology?
- How much are you willing to spend on fees and commissions?
Decide what your goals are for the money. Is it earmarked for retirement? Is part of it supposed to be a short term investment? Use those goals to determine how you'll invest.
How to Invest $100,000
If you sold some real estate and have a dream-come-true $100,000 at your disposal, keep these things in mind: Avoid tax penalties: First and foremost, you want to keep as much of the $100,000 in your pocket as possible. The priority may be to max out your retirement funds. Max out a 401(k) and an IRA to get the full benefit. You have limitless options with $100,000, so set up your investments to suit you perfectly:
- Stock market: Invest in stocks and/or trade in the stock market after careful research.
- Start a business: Chances are, you’ll be able to fund a small business with $100,000.
- Cash reserves: Keep a little money in an accessible cash account. You could use this to pick up stocks that you find interesting without having to change your current stock holding.
How to Invest $1,000,000
The opportunity to invest $1 million to may sound like a dream come true, but the downside is that having a lot of investment capital means you have a lot to lose. Investments of this size should be considered carefully to minimize loss and maximize gain.
Consult an expert: If the thought of investing your $1 million is keeping you up at night, you can select a professional to do it for you. There is no shortage of financial advisors and brokers happy to lend their expertise, but it comes at a price. Be mindful of fees and commissions, as they could be considerable with large investment amounts.
Consider annuities: An annuity is a nice investment alternative if you want something with no risk. A fixed annuity will pay out a fixed amount of income in exchange for your lump sum investment.
Mix and match: The best option for you may be a few of these. You may want to park half of your $1 million in an annuity and put the other half in an index fund. The options are limitless and can be custom fit for you.
Whether you are a potential investor who hasn’t quite taken the plunge, a newly-minted millionaire thanks to a large inheritance, or you’re somewhere in the middle, there are investment opportunities for you. No matter how much money you're ready to invest, you'll be able to tap into plenty of help on Benzinga.
About Maurice Draine
Maurice Draine is a former insurance agent, broker, underwriter tech, and agent sales support rep with over 15 years of professional writing experience. Maurice helps insurance, financial, and various online and ad agencies, create the words that drive customers to their websites and keeps them there.