How To Invest With A Small Sum of Money

Some people will tell you that you can only start investing when you have a ton of money to invest and this simply isn’t true. So, we are going to give you some tops on just how to invest with a small sum of money.

Why invest?

Investing is an effective way of making your money work instead of it sitting there with no value. Unfortunately, savings held in cash tend to lose value, especially with inflation etc. You want your money to outpace inflation with the end goal of your sum of money, increasing in value.

How to invest with small amounts of money

  1. 1. Alleviate your risk. Think of the term “don’t put all your eggs in one basket.” Spread your cash across different assets classes as this has less risk to it.
  2. 2. Don’t invest all your money in one go. Small amounts of money regularly is far more safe than chucking it all in one go.
  3. 3. Use a robo-advisor. If you don’t want to sit there and have to think where to put your money, simply invest through a robo-advisor and let the algorithm workout where best your money should be invested.
  4. 4. Think into the future – think long term. Invest small amounts of money over a longer period. They’ll be ups and downs, but things will eventually stabilise and this will benefit you. You ideally don’t want to be investing in any time shorter than 5 years – give your money time to grow!
  5. 5. Remember, the higher the rewards, the higher the risk of losses.
  6. 6. Be sensible! Take some time to think it through. Make sure it’s the best decision for you to make and go from there. This is a long term thing and shouldn’t be something done on impulse.

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