Well… We all have little money at the starting of our carrier.
The most important question arises on how to invest with a little amount of money.
No Doubt, investing is important. And it is also that investing requires capital.
But With little money, it is very important to learn the discipline of investing.
It is very important that you invest your money.
With little money to invest you will learn to manage money.
If you will learn to invest your little amount of money at the starting of your carrier than it is very important that you will learn to manage your large sums of money.
Here are a few ways to invest with little money.
1 Invest in stocks.
You can start investing in the stock market with a very little amount of money.
If you start investing early in the stock market than you have the advantage that your money will grow. With little money in the stock market, you will learn many things.
Your downside risk with little money is very minimum.
You can start investing in the stock market on your own.
You have to just open a brokerage account. After opening an account, you will be able to buy and sell stocks in the market.
There are many stockbrokers you can choose form.
Some of the best online brokers are:
- Angle broking
You can open an account with any of these brokers, they all have different brokerage charges.
If you will ask me where my accounts are? I have 2 Demat accounts, one with Zerodha and another with Upstox.
2. Start saving your money
If you learn to save your money, then you actually saving your money.
The best way to save your money is to automate your savings.
It is always best to save money when you do not see your money in the first place.
You can automate your savings by opening a Recurring account with the banks.
With a recurring account, you will able to automate your savings. It will also give you some interest on your money.
3. Invest in Mutual Fund through SIP
You can start investing in mutual funds with a very little amount of money.
You can start with a minimum of ₹500 per month.
If you do not have time to do research then it is best for you to invest through mutual funds.
You can invest your money through SIP (Systematic investment plan), in which you invest a fixed amount of money every month.
There are many ways to invest in mutual funds. Now, you can start your mutual fund account online.
Zerodha coin is the best for you, you want to diversify your income between stocks a mutual fund.
4. Invest in your retirement
Retirement is also an important investment. you can not always wait for the government to take care of yourself.
You have to take responsibility for your retirement. Start investing early for your retirement.
You can invest in NPS (National pension scheme). It is tax-free and it only gives you money at your retirement.
5 Invest in learnings
Invest in learning is one of the best investments you can do to yourself.
The more you learn the more you will earn.
Learning can be of anything. You can teach yourself anything you want.
I taught myself investing. I have no formal education in finance.
Elon Musk said “You can learn anything just by reading books and talking to people”
Be a learner. Always learn new things.
There are many courses out there. You can learn any new skills that can pay you.
6 Invest in books and eBooks
You can learn anything by reading books. There are many things that cannot be taught. You can learn these things through readings books.
Today’s reading habits are gone due to many distractions like social media and web series.
Make a habit to read books.
For investing, it is most important that you read. Warren Buffet read 500 pages daily.
Charlie Munger his business partner calls him a learning machine.
You can read more books on kindle. It the best product by amazon.
Here you can read my 15 best picks on investing.
With little money, more focus should be on learning. In investing information is important.
Read as many books as you can. It will help you more than anything.