When it comes to investing, everyone has to start somewhere. A figure like $50 might not seem like that much, but the amount is far less important than the intention.
Instead of asking, “What can this $50 buy me?” the question becomes “How can this $50 work for me over the next few decades?” Before you know it, you’ll have another $50 to throw in, and your investment portfolio will continue to grow.
So, yes, you can start investing with just $50 — here’s how.
How To Find Stocks Under $50
You’ve got a couple of options for how you want to put that $50 into the market.
Get a Fully Managed Investment Account
One of the easiest ways to get involved with investing is by minimizing the choices you have to make. For just $1 per month, MoneyLion’s Auto Invest handles all of your investments. All you need to do is make some basic decisions like how much money you want to invest, and how risky you want to be with your investments.
MoneyLion’s Investment Account will choose a mix of stock and bond exchange-traded funds (ETFs) that best fit your goals and risk tolerance.
You can set up recurring deposits so you continue to contribute to your investments without even thinking about it.
Search the Market
If you want to take a more hands-on approach to your investing, you’ll need to open a brokerage account.
A brokerage account will allow you to pick and choose your investments. If you go this route, make sure to look at the fine print of your deal with the brokerage. Some brokerages charge commission fees every time you trade securities. If you’re trading in relatively small amounts — like $50 — these commission fees can really take a bite out of your profits.
You can find brokerages that don’t charge commission fees, but it’s important to fully understand the terms of holding an account with whatever brokerage you end up choosing.
Setting up a brokerage is just the first step to this method of investing. Once you’ve opened and funded your brokerage account, you’ve got to actually choose your investments.
For beginners, this can be incredibly challenging. Pick the wrong company, and your $50 will disappear quickly. Your best bet is to go with well-established companies that are less volatile than up-and-coming penny stocks. Buying ETFs, which contain a bundle of stocks, can also add diversity to your portfolio, which is key to protecting yourself from losses.
Don’t forget to buy some bonds (or bond ETFs) to further diversify!
Can I Invest $50 Today?
A huge aspect of investing is time. With the right mix of investments, your money will continue to grow as time goes on. That’s why, if you’re interested in investing, you should start right away. With MoneyLion, you can be an investor by the end of the day.
- The first step is to download the MoneyLion app for iPhone or Android — this will be your command center for your investing.
- Go through the steps to open a MoneyLion Investment account, and develop an investment strategy. The app will guide you through the process, and it will largely involve answering questions about your financial life, including your income level and risk tolerance. Be honest in your answers, or you could end up with a portfolio that isn’t serving you as well as it could.
- Once you have an investment strategy, it’s time to actually invest money. That means transferring funds into the account, either from your RoarMoney account or any other type of banking account.
- At this point, you may want to turn on Auto Invest to automate consistent deposits into your investment account. By depositing a little money into your account every week, your money grows faster. This can be a small amount or a large weekly deposit, and you can change it whenever you need to.
- Now, you just need to monitor your money. Check your MoneyLion app every day to see how your money’s doing. This will help you learn about the ebbs and flows of the market.
Don’t Let Anything Stop You From Growing Your Future Finances
There’s a common misconception that investing is just for the uber-wealthy. If you aren’t walking around Wall Street in $1,000 outfits, you might think you aren’t cut out for the stock market.
That line of thinking is deeply flawed. Sure, stocks trade on Wall Street, but they also trade in living rooms across the country. People of all ages, income levels, and financial backgrounds can easily trade stocks with just a couple taps on a smartphone app from the comfort of their couch.
Investing is for everyone — and that certainly includes you.
The easiest and safest way to break through this is to get started as soon as possible with an intuitive, automated service like MoneyLion’s Auto Invest.
There are no account minimums, you can get started in minutes, and you don’t need any prior knowledge of investing. In fact, 90% of MoneyLion customers are first-time investors. By joining them, you’ll be in good company as you start your path toward a stronger financial future.