Small investments make sense , and there are also very interesting options to make them.
If you are wondering where to invest little money , in this article I will give you the answer.
I will also tell you why you should make investments, even if they are small.
What are small investments?
The first thing is to ask yourself what exactly is a small investment.
There will be many interpretations, but I understand by small investments an amount less than €1,000.
Yes, for many 5,000 euros will be a small investment, but for others it will be huge.
Therefore, I am going to consider investing little money, how to invest less than a thousand euros.
Because that figure marks the limit of the minimum investment in many sites , and having less or more to invest will mark where you can invest.
If you have more than 1,000 euros to invest, I advise you to read this article .
Although, in short, I would definitely advise you to invest through a robo advisor .
The problem comes when you have little money to invest, and you do not reach the minimum required in most sites.
But hey, you can still invest, and later I’ll give you some interesting options.
But first, I want to talk to you about why you should invest , even with little money.
Why DO Small Investments Make Sense?
You may think that to invest 200 euros it is better to do nothing.
In part, it makes sense. Clearly, it is much better to be able to invest thousands of euros than to invest little money.
But it also implies a big problem.
Sometimes there are people who never have more than a few hundred euros to invest.
Simple. By not making small investments with those 200 euros, for example, you end up spending them, and you never accumulate more money to invest.
For that alone it is already worth investing, even if it is little money.
If you start investing with €200, in the future you can invest €200 more, and so on.
On the other hand, if you only wait to accumulate a lot of money to invest, you can be tempted to spend that money, and never reach the goal.
👉Really, I think this applies to a lot of things in life.
As Mark Fisher said,
People who waste time waiting for the perfect conditions for everything to fit together never get anything done. The ideal time for action is NOW!
I believe that it is a completely correct phrase, both to invest little money and to start anything else.
When I started Opinatron, I had no idea what I was doing. But I started anyway, and I was learning a lot along the way, until I got to where I am now.
If I had waited to know what I was doing, how to set up a professional website, etc. Right now I wouldn’t have the web, as I would never have started.
The same goes for investment. It is far better to make small investments, if that is all you can do, than to do nothing.
Little by little, those small investments will become big investments, and also your knowledge on the subject will have been growing at the same time as your money, and you will have a much clearer idea of what to do and how to do it.
What you can not expect when investing little money
There is something fundamental to keep in mind. Logical, but what should be remembered.
You cannot expect to invest little money and in a short time have a lot of money.
Sometimes I am asked how to earn thousands of euros by investing 100 or 200 euros, and that is totally surreal.
Yes, bitcoins and other cryptocurrencies have made a lot of people a lot of money, but it’s unusual, let alone predictable.
What you can expect when investing is that these small investments accumulate , and become a considerable figure in the long term.
For example, if you invested €100 per month for 25 years with a return of 7%, you would have €80,000.
Of that, you would only have put €30,000 out of your pocket.
On the other hand, if you think that investing 100 euros a month is nonsense, after those 25 years you will have 0, because you will surely have spent it all.
At most, if you have saved it, you will have €30,000.
Options for someone who wants to make small investments with their money
Even if you have little money to invest, there are several interesting options in which you can invest your small savings.
These are my favourites:
👉 Real Estate Investment from €500
👉 Invest in mutual funds with no minimum investment with My Investor
👉 If you want more return in exchange for more risk, you can try social trading
👉 Open an account with a stock broker
As you can see, there are many options, whether you want to invest a little money or a lot of money.
The important thing, in my opinion, is to start investing your money .
Otherwise, it is most likely that the years go by and you continue without starting, always waiting for the perfect moment, the one that never comes.