It is common that many people do not decide to invest their money because they do not have a large amount of assets, but the reality is that you do not need to have a lot of capital to do so, and with just 100 euros a month you can obtain some benefits. . However, the initial investment capital is not the only amount that must be available when contracting a financial product, since before starting to invest you must have a financial cushion that can support your personal finances.
Experts agree when it comes to ensuring that, once personal finances have been analyzed and both the non-essential expenses and the objectives to be achieved have been determined, it will be time to start an investment strategy. This can help us enjoy a better quality of life, since the money saved and deposited in the bank account does not generate returns, and betting on the investment makes it start working for us.
In any case, before starting to invest, especially if you have little money, it is essential to create an emergency fund, so that you can have money saved for possible unforeseen events. The minimum amount you should always have in a checking or savings account should be equivalent to between 3 and 6 months of fixed expenses. Furthermore, if you have little savings capacity, always keep in mind the possibility of investing in your training, since the more training, the more job opportunities and better salaries.
How to start investing with little money
Once you know that you can invest with very little money, it is advisable to know the different recommended ways to do so, especially highlighting the following:
Investment funds: Currently there are different types of funds that adapt to each profile, so with little money you can resort to these means that bring together the money of many small savers to invest them together in a basket of shares and other services . . It is a financial product recommended to diversify investment, especially with little initial capital. In addition, it is recommended to make periodic contributions.Buy: Although your initial capital is limited, you have the possibility of starting to invest in the stock market by buying shares, although in this case you will need more money or time to have good diversification, in addition to having the need to learn to analyze and value the different companies in which to invest. Invest in public debt: If you want to start investing in a “safe” way, you can do so in public debt, although this will mean that you are leaving aside the profitability that other products can offer you. In this case, it consists of buying debt from the Government of a country, that is, money is lent to it that is later returned with interest. stock market index in particular (S&P 500, Ibex 35…). One of its advantages is that it requires less activity on the part of the management team, which means that its commissions are very low compared to traditional investment funds.
