If you’ve ever thought about putting your money to work with investing, then you might have wondered where you’re supposed to get started. There doesn’t seem to be a one-size-fits-all guide to making money out there that works for everyone with a little bit of spare cash, and an interest in the financial world.
Some people find themselves drawn to the active lifestyle of trading and jump into the stock market with the best tools for day trading to guide them. These individuals often have a much bigger capacity for risk than their peers, as well as plenty of time so that they can watch the ups and downs of their chosen market closely. There are also people just like you who might want to take things slow. Here are some quick ways to get started if you don’t have a lot of cash or confidence.
The Cookie Jar Method
There’s a fine line between investing and saving for a lot of people. If you want to spend cash on an asset or security, then you need to have something left over when you’re done paying for all your bills. If you’ve never been much of a saver, starting with something simple, like the cookie jar method, can be an excellent start. Try putting a couple of dollars a week into a jar or a shoebox. Over time, as you start to develop more spare cash, you can split the money you keep aside into emergency savings, and money that you want to put into your investments. Some online bank accounts even allow you to make purchases for shares and securities with your spare change.
Approach Stocks Slowly
There’s no rule that says you have to jump into the stock market with thousands of dollars. You’d be surprised how many online and offline brokers today make it easy to get started with just a little bit of extra cash. You can track down different companies online and find out what their minimum requirement is for an investment, as well as how many fees they might charge to help you get started.
There are even some companies out there that might let you get started with as little as a couple of dollars. This can be a great way to get a taste for spending your money on long-term strategies that will eventually pay off in the long run. The more you get comfortable with the landscape, the easier it will be to spend big bucks.
Try a Robo Advisor
Finally, if you’re interested in the modern world of investing, you can always look into robo advisors. These solutions entered the investing market about a decade ago to make investing as simple and accessible as possible. You don’t need a lot of prior experience to take this route, as these companies will take much of the guesswork out of the process. All you need to do to get started is answer a few basic questions that help to determine your risk tolerance and your goals. The robotic advisors use algorithms to figure out where to spend your money, which takes the pressure off you.