A common myth about investing is that you need thousands of dollars just to get started. That outdated belief has kept countless people, especially younger adults and those living paycheck to paycheck, on the sidelines, missing out on years of potential growth. The truth? You can start investing with as little as $5. Thanks to technology and creative financial tools, the barrier to entry has never been lower.
Today’s market is more accessible, democratized, and customizable than ever before. From spare-change apps to fractional shares, it’s now possible to build a solid investment strategy without having to sacrifice your rent money. Whether you’re aiming for long-term wealth or just dipping your toes into the investing pool, there are plenty of low-cost ways to make your money work for you.
Ready to stop watching from the sidelines? These nine unexpected but powerful strategies will show you exactly how to invest with little money and grow it over time.
1. Start with Micro-Investing Apps
Micro-investing apps like Acorns, Stash, or SoFi Invest make it easy to get started with pocket change. These platforms allow you to invest small amounts automatically, often by rounding up your purchases and depositing the spare change into a diversified portfolio. You won’t get rich overnight, but the goal here is consistency and habit-building. These apps take the intimidation out of investing, helping you grow a nest egg quietly in the background while you go about your day.
2. Buy Fractional Shares of Big Companies
In the past, if you wanted to invest in a high-profile company like Amazon or Tesla, you had to buy an entire share, which could cost hundreds or even thousands of dollars. Not anymore. Many brokerages now offer fractional shares, letting you invest in your favorite companies with as little as $1. This is a game-changer for new investors. Platforms like Robinhood, Fidelity, and Schwab allow you to buy fractions of shares so you can build a diversified portfolio without needing big capital upfront.
3. Open a High-Yield Savings Account That Offers Investment Options
Some online banks and fintech companies now blend savings with investing. Platforms like Wealthfront and Betterment offer high-yield cash accounts that can automatically allocate a portion of your savings into investment portfolios. This dual approach allows your money to earn interest while simultaneously dipping a toe into investing. If you’re nervous about risk or just getting started, it’s a low-pressure way to bridge the gap between saving and investing.
4. Use Employer Retirement Plans to Your Advantage
If your job offers a 401(k), especially one with a company match, this is one of the smartest places to start investing. You can contribute small amounts from each paycheck and have them automatically invested in a diversified portfolio.
Even if you can only afford to contribute 1–3% of your paycheck, it adds up over time. Plus, if your employer matches your contributions, you’re doubling your money instantly. That’s an unbeatable return with zero risk.
5. Explore Dividend Reinvestment Plans (DRIPs)
Dividend Reinvestment Plans (DRIPs) allow you to invest in dividend-paying stocks directly through a company, often without brokerage fees. When the company pays dividends, they’re automatically used to buy more shares, even if it’s just a fraction.
This is a powerful way to benefit from compound growth. Over time, your reinvested dividends build up your holdings and generate even more dividends, all without needing to add more out-of-pocket cash.
6. Try Real Estate Crowdfunding Platforms
Think real estate investing is out of reach? Not anymore. With platforms like Fundrise or RealtyMogul, you can invest in commercial or residential real estate with as little as $10 to $500. These platforms pool your money with other investors to fund real estate projects. You receive returns in the form of dividends and potential property appreciation without having to buy, manage, or flip any property yourself.
7. Lend Money Through Peer-to-Peer Lending
Peer-to-peer (P2P) lending platforms like Prosper or LendingClub allow you to invest by lending small amounts of money to individuals or small businesses. In return, you earn interest as they repay the loan. You can start with $25 per loan and spread your investment across multiple borrowers to reduce risk. While returns vary, P2P lending can offer higher interest rates than traditional savings accounts or bonds, with a little more risk.
8. Invest in Yourself
Not all investments come from the stock market. One of the most overlooked but highest ROI investments you can make is in yourself. This could mean buying a course that upgrades your skills, learning a trade, improving your resume, or launching a side hustle.
Whether it’s learning SEO, getting a new certification, or improving your financial literacy, these types of investments can lead to better jobs, more income, and long-term career growth. Even $20 spent wisely on personal development can create a ripple effect for your future wealth.
9. Automate Everything
The secret to long-term investing success, especially when you don’t have a lot of money, is automation. Automate your deposits into your investment accounts, your retirement contributions, and even your spare-change investments.
When the process is automatic, you don’t have to rely on willpower or timing the market. You’re consistently building wealth in the background. Many platforms allow you to set up recurring deposits as low as $5 a week, which removes the friction and excuses that often delay investing.
You Don’t Need To Start With Thousands
You don’t need thousands of dollars or a finance degree to start investing. You just need a strategy and a willingness to start small. Every dollar you invest today is a seed planted for tomorrow’s financial freedom. These nine low-cost strategies aren’t just about making money. They’re about shifting your mindset.
By starting early and investing consistently, even small amounts can snowball into something significant over time. Whether you’re using spare change, fractional shares, or investing in yourself, the key is to start, even if you start tiny.
Which of these small-money investment strategies are you excited to try, and how will you make room for investing in your budget this month?
Read More:
8 Investing Mistakes That Costs You Millions Because You Weren’t Paying Attention to The Market
5 High-Potential Stocks That Could Have Your Investments Rising Quickly
Riley is an Arizona native with over nine years of writing experience. From personal finance to travel to digital marketing to pop culture, she’s written about everything under the sun. When she’s not writing, she’s spending her time outside, reading, or cuddling with her two corgis.
