Investing with Little

Many people think about investing, but are worried that they don't have the means to do it. You don't have to be a millionaire to invest your money. You can start with as little as $50 in savings and build your portfolio from there.

The easiest place to start is with a 401k plan. This is one of the best and most popular ways to save for your retirement. Check if your employer matches contributions. The most generous employers match dollar for dollar, so you get an unbelievable 100% return on your investment. Even if your employer matches just 50 cents for every dollar, that's still a fantastic 50% return without lifting a finger. Not taking advantage of matched contributions is the same as throwing money away. Set up an automatic monthly transfer then sit back and watch your money grow.

If you have at least $1,000 to invest, consider buying into a mutual fund. The funds are managed by professionals, so you won't have to waste your time researching individual companies and stocks. Different funds take different approaches to investing. Choose one that matches your own tolerance for risk, and don't invest more than you can afford to lose. If you don't have $1,000 to invest, you can still go the mutual fund route by opening an IRA. The minimums for IRAs can be as little as $200.

Some people prefer to invest in individual companies. If you like a product or a company, you can own a small piece of it by buying the company's stock via an online broker. You will have to pay the broker to process the transaction, but the fees are much lower if you don't require investment advice. You will have to research the company yourself so you're not just throwing your money away.