Many people think that if they don’t have a lot of money, then why bother investing. That’s the wrong way to think! There are great options for investing at any level – even investing small amounts. This is especially true with a recent change with the most popular robo-investing platform. So let’s explore the question: What is the best way to invest small amounts of money?

What is the best way to invest small amounts of money?

Investing small amounts of money

What is considered a “small amount of money”?

For some people that might mean $10 per week. For others, it might mean $125 each week.

Regardless of the amount, “just do it”.

The investments don’t need to be weekly – monthly will work too. But they should be made on a regular and consistent basis. Everyone should understand the magic math behind consistent investing.

While the amount you invest does matter, what matters, even more, is doing it. You need to take action. Far too many people don’t invest because they think they don’t have enough money. You can get started with as little as $5 per week. Starting with small amounts can make a huge impact on your future wealth.

How much of an impact? Consider these potential scenarios*:

Weekly Investment Amount Total Investment Balance in 30 years
$10 $81,478
$25 $201,468
$50 $401,452
$75 $601,436
$125 $1,001,404

*These scenarios assume a 9% average annual return, which is lower than the historical average of the S&P 500 stock index.

Can you afford to invest even small amounts?

Yes, almost everyone can.

If you were to skip coffee at Starbucks twice a week, that’s easily $10. Even carry-out options anymore seem to cost at least $25. Cooking an additional meal at home instead of carry-out can save $25 easily.

$125/week though? Who can afford that?

Apparently the average American family can. Why? Because the average car payment recently clocked in at $503 monthly. Someone who believes it is fine to always have a car payment is wasting a million dollars over just thirty years of their life.

My intent here isn’t to convince you to invest though. Hopefully, you understand the tremendous benefit of investing. What are your options to invest small amounts of money?

Robo-Investing to the rescue

It’s probably not a surprise to you that I recommend robo-investing solutions. The “robo” solutions are not only low-cost, but they’re easy to use. They also make investing on auto-pilot very easy.