{"id":838,"date":"2022-06-29T19:12:10","date_gmt":"2022-06-29T19:12:10","guid":{"rendered":"https:\/\/www.wallstreetzen.com\/blog\/?p=838"},"modified":"2025-06-24T14:44:13","modified_gmt":"2025-06-24T14:44:13","slug":"how-to-invest-in-stocks-for-beginners-with-little-money","status":"publish","type":"post","link":"https:\/\/www.wallstreetzen.com\/blog\/how-to-invest-in-stocks-for-beginners-with-little-money\/","title":{"rendered":"How to Invest in Stocks for Beginners (with Little Money)"},"content":{"rendered":"\n

In anything, getting started is always the hardest part.<\/p>\n\n\n\n

It\u2019s no different when it comes to investing.<\/p>\n\n\n\n

But the best time to start investing is right now, regardless of how much money you have to invest or what stage of life you\u2019re at.<\/p>\n\n\n\n

In this article, I\u2019m going to answer the question of how to invest with little money. More specifically, I\u2019m going to suggest multiple ways you can get started investing in the stock market.<\/p>\n\n\n\n

With recent innovations among the best stock apps<\/a>, specifically commission-free trading and fractional shares, it\u2019s never been easier for beginners to start investing with little money.<\/p>\n\n\n

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How to start investing with little money<\/strong><\/h2>\n\n\n\n

Many people don\u2019t think they have enough money to start investing.<\/p>\n\n\n\n

But the fact of the matter is, assuming you have at least $10, you have enough money to start investing. A lot of investing platforms offer free stocks<\/a> just for signing up.<\/p>\n\n\n\n

Everybody has to start somewhere and, as I mentioned above, it\u2019s never been easier for beginners with little money to start investing.<\/p>\n\n\n\n

But what\u2019s the best way to start investing? <\/p>\n\n\n\n

For most people, there are a few good options that I tend to recommend in this exact order.<\/p>\n\n\n\n

Here are 3 ways to start investing with little money:<\/p>\n\n\n\n

1. Enroll in your employer\u2019s retirement plan<\/strong><\/h3>\n\n\n\n

Even if you\u2019re on a tight budget, you can enroll in your company\u2019s retirement plan and start contributing amounts so small you won\u2019t even notice them.<\/p>\n\n\n\n

For instance, you could start with investing just 1% of your salary into the employer plan. <\/p>\n\n\n\n

After hardly noticing the difference in your paycheck, you could increase it gradually each year or with every pay increase.<\/p>\n\n\n\n

Plus, many employer-sponsored plans offer \u201cmatching\u201d benefits, meaning each dollar you contribute is matched by your employer, up to a certain percent.<\/p>\n\n\n\n

With matching, your 2% contribution is matched by a 2% contribution from your company, instantly doubling your money (before it\u2019s even invested!).<\/p>\n\n\n\n

To get started, simply contact your HR department and ask them about the company\u2019s retirement plan and if it includes matching contributions. From there, you can pick your contribution amount, sign a few forms, and start investing.<\/p>\n\n\n\n

Remember, an employer retirement plan (typically what\u2019s called a 401k plan) is a retirement savings vehicle, on which the IRS offers tax incentives. There are penalties for withdrawing funds before retirement age. Make sure you understand the implications of using tax-incentivized, retirement accounts.<\/p>\n\n\n\n

2. Do-it-yourself (DIY)<\/strong><\/h3>\n\n\n\n

Employer-sponsored plans are great, but what if you\u2019re self-employed or don\u2019t want to tie up your money in a retirement-only vehicle?<\/p>\n\n\n\n

You can transfer money into an individual brokerage account (which can be created for free at an online brokerage) like you would an online bank account. But unlike bank accounts, brokerage accounts give you access to financial markets where you can invest in stocks, bonds, and other financial instruments.<\/p>\n\n\n\n

Read more: <\/strong>How to Buy Stocks Online: The Step-by-Step Guide for Beginners<\/a><\/p>\n\n\n\n

If you’re interested in the DIY approach, learn how to buy stocks online<\/a> before resuming this article.<\/p>\n\n\n\n

In summary, you\u2019ll need a brokerage account (we always recommend eToro<\/a>, the best ETF broker<\/a>) to transfer funds into and then choose an investment and create an order.<\/p>\n\n\n

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The brokerage account you use will need to allow fractional share purchases and ideally allow you to purchase both individual stocks and ETFs. eToro does both, all with commission-free trading!<\/p>\n<\/div>\n <\/div>\n\n\n\n

If you\u2019re brand new to investing and aren\u2019t sure how to research stocks like Tesla (NASDAQ: TSLA<\/strong><\/a>) or Apple (NASDAQ: AAPL<\/strong><\/a>), I would recommend buying an ETF.<\/p>\n\n\n\n

An ETF<\/strong> (exchange-traded-fund) is a basket of stocks that offers diversification and easy trading. These are great investments for beginner investors with little money.<\/p>\n\n\n\n

My personal favorite ETFs are 2 of Vanguard\u2019s most popular funds:<\/p>\n\n\n\n