How Anyone Can Start Investing with Just $5 - Finances Demystified Blog

How Anyone Can Start Investing with Just $5

Do you have $5?

If you answered yes, then you have enough money to start investing today!

If you answered no, I encourage you to find $5 and continue reading. Even when you feel broke, you can often find a few extra dollars. Look around for spare change. Go all Marie Kondo on your house and sell items you don’t love on Facebook Marketplace. Review your budget and check if one less Starbucks stop this week will leave you with extra cash.

You CAN invest. Anyone can invest. All you need is $5 to get started and I’ll show you how!

Start small. Start early.

I know it’s easy to think “it takes money to make money,” but I’m here to tell you it doesn’t take that much! A crisp five-dollar bill and you can take the first steps toward transforming your financial situation from paycheck-to-paycheck to abundance.

The cool thing about investing is it makes your money work for you. There are two ways to earn money: you can work for it, or it can work for you. The sweet spot of financial success is to earn it AND watch it work.

No matter where you are – just starting your professional life, a new parent, or on the cusp of retirement, it’s never too late to start investing. However, the earlier you start saving, the less you have to save.

How Anyone Can Start Investing with Just $5

 

It’s completely natural to be unsure about where to start, but like anything else in life, you’ve got to start somewhere. I encourage you to start small and start early. You don’t have to wait until you have thousands of extra dollars sitting around to start thinking about your financial future. 

What will you do with your fortune? 

Yes, I said fortune. Because an abundant, confident mindset leads to abundance. 

I want you to imagine, if your bank account was overflowing, what would you do with the extra money? Defining your why for building wealth can make or break a saving and investing strategy. 

Your why can be centered around major expenses that feel unachievable such as sending your kids to college without student loans, making a healthy down payment on your dream home, or taking a once-in-a-lifetime trip to someplace exotic (and expensive). Your why can also be longer-term, such as saving for retirement or retiring early. 

 

What matters is that you define your why.

Write it on sticky notes. Hang it over your computer. Post it on the fridge. Do whatever you need to do to keep your why front and center, so every extra dollar you earn, you can wisely decide to spend it or invest it. 

Jump In and Don’t Look Back!

I know investing can feel foreign to anyone outside of Wall Street. For a long time that was because Wall Street firms received free trades, which allowed them to operate with an air of exclusivity.

This old school way of investing isn’t the only way anymore. Thanks to developers and tech companies, tools have been built to level the playing field, giving any consumer the ability to start investing with just $5. 

Here are my favorite, tried, and true tools that give you all the access you need to make your money start working for you!

Robinhood

Robinhood is one of my favorite platforms, especially for anyone just getting started with investing. Both the app and website are incredibly easy-to-use and straight-forward. On Robinhood, you get free, unlimited ability to trade stocks, ETFs (which are fractional shares, so you can invest in a piece of large companies with expensive stocks like Google), options, and even cryptocurrency. 

If you want to give Robinhood a try, sign up with this link and you’ll receive a free stock!

Recommended for: anyone just getting started and wanting an easy-to-use, engaging platform for investing. Their newsletter is an entertaining and informative must-read for all levels of investors! 

WeBull

WeBull is an amazing platform for getting started, but also for diving deep into watching the market. Their platform is the most technologically advanced and gives you the ability to initiate trades after hours, view detailed graphs of the market, and more.

You won’t pay any trade commissions with WeBull, you’ll get access to a tech-driven trading platform and if you sign up with this link and you’ll get a free stock!

Recommended for: new investors, experienced investors and anyone with a love and appreciation for the magic of technology. 

Acorns

Acorns was founded on a great premise that mighty oaks grow from acorns, which perfectly illustrates how you can have strong, healthy finances, by starting with just spare change. Through their website and app, you can invest your spare change from everyday purchases, save and even use it as your checking account. This is the easiest way to create a portfolio based on your goals and timeline.

Get started investing with Acorns using this link and you’ll get a free gift during registration

Recommend for: both beginner and advanced investors and anyone who struggles to set aside money for investing, and have a desire to create a quick portfolio.

No matter what tool you choose, I promise they will make investing fun and accessible for you. 

It only takes $5 and 15 minutes to get started.  Jump into your investing journey and don’t look back! 

Put your $$$$ to work!

So, you’ve decided to start investing. You picked a tool and signed up. Now what?

Next comes the fun part – choosing where to put your money to work! I encourage you to enjoy investing and entrust your money to companies you already know, love, and trust. You don’t have to (and shouldn’t) invest in things that are foreign to you. If you are an oil and gas expert, then charge forward investing in those areas. If you aren’t, just stay away and invest in what you know.

The first step I always tell a new investor is to look around your house – what appliances and brands do you own? Look in your fridge! Check out what you drive, where you eat, where you shop, and brands you frequent. 

It’s not wise (or fun) to invest in companies you know nothing about. 

Use Uber a lot? Add it to your portfolio. 

Travel with Airbnb. Invest! 

Wear Nikes? Own it! 

The great thing about tools like Robinhood, WeBull, and Acorns is that they give you the ability to buy fractions of stocks so if you only have $5, you can still buy into Apple. 

When you look at the market, it can look like a cluster of acronyms, numbers, percentages, and data sets. Don’t get lost in this stuff. The longer you invest, the more sense it will make. When you are getting started, keep it simple. 

Invest in companies you would be proud and knowledgeable enough about to say you own stock in. 

You’ll be amazed at how just $5 and a decision to get started can transform your financial future. 

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If you’ve enjoyed this article, I invite you to join me for my next free investing webinar. During this live webinar, you’ll be able to ask questions and interact with me in real-time to get all your investing questions answered! I hope to see you there. Sign up today > 

Happy Investing, 

Dominique Broadway

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