Simple Ways to Start Investing With Little Money

In this post we’ll be looking at two simple ways you can start investing with little money. As it’s a common misconception that you need a lot of cash before you can start. This may have been true in the past, but now days it is possible to begin investing with just £1.

Saving capital for larger investments is of course still worthwhile. But by investing smaller amounts of money sooner you are able to grow your overall wealth quicker.

These suggestions are not the only methods of investing with little money, but they’re a simple way to get started.

1. Invest Your Spare Change

It can be hard to get into the habit of saving. Putting money aside each month is not something that comes naturally to all of us. Especially when we are not sure how much we should be aiming to save.

Luckily, these days there are many apps which can help when it comes to putting money aside for investments.

Apps like Money Box, make saving and investing as frictionless as possible.

You simply Sync your Debit Card with the Money Box service, and they automatically roundup your purchases to the nearest pound. The difference is then added into a Stocks and Shares account, ready for you to invest.

For example, if you buy a Sandwich for £2.50 Money Box will charge your card £3. Putting the 50p difference into your Stocks and Shares account.

Once you have £1 or more in the account you can start investing. All major company stocks can be traded on the platform plus some Mutual Funds.


Simple way to invest with little money


2. Simple Low-initial-investment Mutual Funds

Some Mutual Funds demand large initial investment amounts, however many start from as little as £100.

Trading platforms such as Hargreaves Lansdown are simple to use, and let you invest £25 a month with a Direct Debt.

This is a great way to start investing, and once you set it up it takes care of itself. If you want to start investing larger amounts you can simply amend the monthly figure.

Mutual Fund investments are how I got started and they are a simple way to grow your overall wealth. If you want to learn more about them check out my post How To Invest In Mutual Funds.

Make sure you invest through an ISA 

Both Money Box, and Hargreaves Lansdown enable you to invest through an ISA.

Any investments made via an ISA are exempt from tax. Meaning you keep all the profits from your investments, whether they’re from dividends or capital growth.

£20,000 can be paid into an ISA each year, so if you are investing small amounts you are unlikely to exceed this.

You can also invest in a ‘Lifetime ISA’, which is a great option if you’re looking to save for a first home. To find out more about Lifetime ISAs, check out my post here: ‘Should I get a Lifetime ISA’.


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