Beginning Investing: Without Much To Invest!

ur list of things you wish you could do, butshares of stock you own. This can help result in
can’t afford to do, growing longer? Manyhigher income levels in later years, and while you
people understand the value of investing, and thewould probably enjoy receiving those mini-dividend
importance of investing in order to secure theirchecks now, it’s better to reinvest them so
futures, but they don’t have much availablethey can grow into larger checks in a few years!
money that can be used for investing. These people4. Enroll in your company’s 401K plan, if
might believe that they are not able to startoffered. Some companies even provide a matching
investing and instead, continue to struggle with thecontribution- where they match a percentage or all
daily living expenses and no plan for their financialof your deposits. If you have this available to you
future.and you aren’t taking advantage of it,
There are actually numerous ways that people whoyou’re throwing away free money. You may
don’t necessarily have a lot of cash availablemiss the $15 you have automatically deducted from
can begin investing, and every penny saved can helpyour pay and put into your 401K each week at first,
over the longer term. The only proven way tobut after a few weeks you won’t even
improve your financial situation is to reduce yournotice it’s gone and it will be going to a far
expenses and increase your income, while saving forgreater cause than using it to buy lunch at your
the future.favorite fast food joint!
7 Ways to Invest Even if You’re Broke5. Join an investment club, and pool your money with
1. Save all of your change. Use cash to make asthe members of the club to help build a more
many purchases as possible, rather than writing acomprehensive portfolio for small investments. When
check or swiping your debit card, and put the changeyou invest on your own with small amounts of
into a bucket at home each day. At the end ofmoney, it can be difficult to build a diverse portfolio.
every month or two, deposit the change into a highBy pooling your money with a group of like-minded
interest savings account and watch it grow! Ifpeople, you can build a diverse and comprehensive
you’ve never actually saved your changeportfolio that will perform much better financially.
before, you will be quite surprised at how fast6. Take advantage of compound interest and start
change can accumulate. If you saved $25 in changeinvesting as early as possible. If you invest $2,000 at
each month, you’d have $300 at the end ofthe age of 25, you will actually end up with more at
the year- and more if you save it in a high interestretirement than a 30 year old who invests $5,000 on
savings account!the same date!
2. Enroll in a direct stock purchase plan that allows7. If you receive money from an unexpected source,
you to start investing with as little as $25. Director you get a tax refund, you should consider it
stock purchase plans allow investors to purchasemoney you didn’t get and immediately invest
fractions of stocks based on the dollar amount youit instead of spending it. When you invest the money,
invest.you get a deduction on your taxes, also.
3. Reinvest your dividends to increase the number of