How Much Money Would You Need to Invest Now if You Can Earn?

It’s a daunting task to invest. It sounds great to put your savings to work and earn more money, but most people don’t have $1,000. You can still invest in stocks even if you have a smaller amount.


This is great news! It doesn’t take a lot to invest. You can start investing in stock markets with as little as $10 thanks to zero-fee brokerages or fractional shares.

This is how you can turn even a little bit of money into an investment empire.

What is the right amount to invest?

It all depends on your financial situation and your investment goals.

If you have a lot of money in your checking account and are interested in saving for retirement in 30 years, your “right amount” will be different than that of someone who has maxed out all their credit cards and hopes to make a down payment on a house in five years. You can invest any amount, big or small. The decision is yours.

These are some guidelines to help you choose the right amount of initial investment.

  • First, pay off your debt. Although it might seem tempting to make money immediately, investing is a long-term endeavor. Your investments will likely start slowly, but your earnings will increase over time thanks to compound interest, dividends, and growth. This means that high-interest debt such as credit card debt will cost you more than what you can make by investing. Before you invest your money, make sure to pay off any debt that has a higher than 8% or 10% interest rate.
  • A budget is essential: If you are unable to pay rent, the money you have put into a Roth IRA, such as one that charges steep penalties if you withdraw it before the age of 59 1/2, then you won’t be able to invest. You can ensure that you have enough money to invest by creating a monthly budget. This will outline your expenses, such as utilities and loan payments, as well as discretionary spending, like entertainment and dining out. You will be able to determine how much you can invest based on this.
  • Remember to consider emergencies. We have all experienced unexpected expenses such as a car repair, a medical emergency, or a layoff that blew our budget. Although putting money in a retirement account or plan can provide tax benefits, it makes it much more difficult to access those funds quickly. You can ensure that you have enough money to cover an emergency by saving money.

After you have done the basic calculations and set financial goals, you will be able to find a monthly amount that you can invest. Yes, every month. While a lump sum can be a good investment, putting in more each month will make it easier to reach your financial goals.

Perhaps it’s $2,000 per month. It could be as low as $10 per month. It doesn’t really matter how much you spend as long as it is right for your needs.


How can I invest a small amount?

You will need to open an account at a broker in order to invest in any type of investment, including individual stocks, bonds, or mutual funds.

Many banks have brokerage departments. If you have an account with a bank, they may have some perks that allow you to invest with them. You may also consider an independent brokerage company or an app-based or online-only broker.

Start with a modest amount and make sure you have the following:

  • There are no minimum balance fees. Investments can increase, but they also have the potential to decrease. You might end up below the threshold for the “low balance” fee if your initial investment is greater than the threshold set by the broker.
  • There are no transaction fees or commissions: Unlike ten years ago, many brokerages offer commission-free trades. Check to make sure that your brokerage is following this trend.
  • Fractional shares can be purchased: Fractional shares refer to investments that are less than one stock share. Fractional shares will only be allowed by brokers in the case of a stock split, reinvestment dividends that automatically yield fractional shares. Your options are severely limited when fractional shares can’t be purchased directly, as single shares of multiple stocks can cost hundreds of thousands or even thousands of dollars.

Getting started

After you have chosen a broker and decided on your investment goals, and you have your initial investment amount, you can start to make your first investment.

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