How investing a little on every paycheck goes a long way


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You don’t need to have a ton of disposable income to start investing – investing a little every paycheck can go a long way with compound interest.

“The best thing you can do with your money is create an investing habit and start that habit immediately,” said Andrew Sather, co-host of “The Investing for Beginners Podcast.” “It doesn’t matter if you feel like you don’t have much to invest – even $20 or $30 a month can add up to big bucks over time.”

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This is advice that Sather took himself. “A good example is the first stock I bought in 2012: I bought a single stock of Microsoft at around $27.50,” he said. “I reinvested my dividends from the company, which turned a single stock into 1.1925 shares, now worth over $300.” Read the following tips to start investing.


Figure out how much you can dedicate per paycheck to investing — as Sather said, it can be as little as $20 or $30 per month, so it can be just $10 to $15 per paycheck.

Consider fractional investments

This may not be enough to buy a full stock, so you can either put money aside until you can buy the stock or ETF of your choice, or make a split investment. Apps like Robinhood and some brokerages allow you to buy small portions of a stock, making them more affordable for you. For example, it currently costs more than $2,200 to buy a single share of Amazon (AMZN), but 0.1 share of Amazon costs only $220.

Read more: 6 alternative investments to consider for diversification in 2022

Invest your spare change

Another way to get into the investing game without needing a ton of money is to use an app that automatically invests your spare currency, like Acorns or Stash. They round up the purchases you make with your credit or debit cards to the nearest dollar, then automatically invest that amount for you. For example, if you bought groceries for $95.50, the app would round the purchase up to $96, investing the extra $0.50.

Do your research

There are several other ways to start investing with just a little money, including using the average dollar cost strategy to invest in mutual funds or ETFs, invest in stablecoins, lend your money to high interest rates through peer-to-peer lending platforms. and invest in equity funds or REITs. The best way to get the most out of your (small) investments is to do some research to determine what is best for you.

“Investing isn’t just about putting money aside as soon as possible and the compound interest of your portfolio, but rather the compound interest of your investment knowledge,” said Stig Brodersen, co. -host of “We Study Billionaires”. podcast. “Start reading books as soon as possible and learn from people with the best backgrounds like Warren Buffett.”

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Brenda Zhang contributed reporting for this article.

About the Author

Gabrielle joined GOBankingRates in 2017 and brings with her a decade of experience in the journalism industry. Prior to joining the team, she was a staff writer-reporter for People Magazine and His work has also appeared on E! Online, Us Weekly, Patch, Sweety High, and Discover Los Angeles, and she’s been featured on “Good Morning America” ​​as a celebrity news expert.


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