One of the hardest aspects of investing is not having enough capital to get started. This leads to a very frustrating situation where you’re mentally ready to start, but not financially. Well, not to worry! There are a few ways to start investing with less than $1,000 in your bank account.
To be honest, I was in this situation less than 6 months ago. I wanted to get started planning for retirement, but student loans, rent and other financial responsibilities kept adding up each month and I found myself twiddling my thumbs as I tried to find the capital to open up a brokerage account. However, I kept putting a little bit away each month and I eventually had the $1,000 I needed to make my first purchase.
Even though I started investing with $1,000, I still recommend to others that they wait until they have more. Any emergency expenses during the month I put in my first $1,000 would have ruined me financially. I would have ended up withdrawing from my Roth and incurring a huge loss on taxes to access my money. So, a few words of caution. If you aren’t ready yet, it’s not always a bad idea to wait until you are.
But, for those of you that are ready, there truly is no better feeling than the feeling of saving money and putting it away towards securing your financial future. Even if you only start with a $1,000, it’s better than putting away nothing at all. So, lets get started! Below is a short video I made on how I would personally get started investing if I only had a $1,000. Check it out!