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Putting aside extra cash when theres barely enough to make ends meet can certainly be challenging.
However, if youre committed to the cause, you might surprise yourself with what you might do.
If youre ready to start investing, he created a step-by-step guide to help grow your wealth.
Keep reading tolearn his tips for investing on a limited budget.
To get started, he recommended taking these three steps.
This is typically three to six months worth of living expenses, he said.
This will protect you from having to dip into investments if an emergency arises.
He shared three different options to choose from.
They offer diversification and have low fees, which helps you grow your money over time.
A major bonus, you could get started with a minimal investment.
Many brokers allow you to start with as little as $50 to $100, he said.
Look for platforms like Vanguard, Fidelity or apps like Robinhood or Acorns that offer no-fee trading.
However, your total investment assuming monthly compounding would be $8,855.21.
Just like that, youve earned another $2,700-plus thanks to small investments.
This makes it easier to invest in expensive stocks likeAmazon or Teslawith smaller amounts of money.
Many brokers, such asRobinhood or Schwab, allow you to buy fractional shares, he said.
Over time, your contributions combined with the power of compounding will significantly grow your wealth, he said.
The longer you stay invested, the more your money can grow.
Consider diversifying into other assets like bonds, real estate (through REITs) or dividend-paying stocks.
Ultimately, he saidpatience and consistencyare a must when investing as a low-income earner.
Even if you start small, your investments will grow as long as you stay committed.
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