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How to Start Investing With Little to No Money

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Carrie SmithGuest Blogger
October 07, 2016 · 4.3k Views

Don’t think you can start investing in the stock market, or open a retirement account, when you’re broke? Think again! Given the advances in technology, and the ability to crowdfund almost any financial need, you can start investing with just a few dollars a month. Yep, really!

Your investment options may be more limited, but you do have options. Here’s how to get started investing when you have little to no money.


How to Start Investing for Beginners

investment for dummies

money bag Start with dollar-cost averaging (DCA)

Dollar-cost averaging is a simple way to start investing even when you don’t have a lot of money at your disposal. Simply put, you invest the same amount of money into a specific investment, no matter what the stock market or economy is doing at that moment.

If the market is low you’re able to purchase more stocks and invest in certain companies, because prices are lower. On the flip side, when the market is high, you purchase fewer shares at a higher price point. The main advantage to this is that you’re able to invest on a regular schedule and not have to worry about what the market is doing. This helps you create a strategy for building wealth over the long term.

If you can only afford to invest $25 a month, then that’s where you can start with the dollar-cost averaging method. It’s a great long term investment strategy that works really well for beginners and those with little to no money.

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money bag Try peer-to-peer lending

Peer-to-peer lending (also known as P2P) is a way for individuals and businesses to become connected to potential investors through a crowdfunded-type platform. Lenders are matched up with borrowers who need funds and can start lending money in small increments.

lending club


This practice of crowdlending, as it’s sometimes called, allows you to get into the investment space by offering unsecured personal loans to other individuals and small businesses. And since all of the transactions are made strictly online, the overhead savings are passed along to customers in the form of decent returns.

The two most popular companies in the P2P industry, are:

Even if you don’t have a lot of money to offer in P2P lending, your portfolio account can be pooled with other funds to make up the amount a particular borrower is applying for. The interest rate you’ll earn on your investment varies, but can range from 5.00% to upwards of 8.00% which is fairly decent compared to the stock market.

money bag Put your investing on autopilot

Thanks to technological advances, there’s a wide variety of financial services and apps that will help you get started investing right now. Robo-advisors consist of financial startups who bridge the gap between traditional financial advisors and investment firms, and managing everything yourself. They’re perfect for putting your money on autopilot by using their services, but still allow their robot-like algorithm to invest the money for you.

wealthfront app

Apple App Store

This way you’re able to get quality investment advice and trades without the high price tag, and you can oversee it all yourself with a click of a mouse button. A few of the most popular robo-advisors, that allow you to start investing with just your spare change, include:

Getting started with investing doesn’t always mean you need to have a lot of money at your disposal. Using these tips you can get started this month with as little as $1-2 and increase your investment over time. The idea is to start small, stick with it and continue to build wealth over the long term.

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carefulcents profile picture
Hi, I'm Carrie Smith! I'm a financial writer and small business expert who helps freelancers build client-based businesses through meaningful relationships. I have a background in small business accounting and taxes and recently won an award for Best Entrepreneurship Blog for my site, carefulcents.com.

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