Invest with no money: 8 tips to get started

There are plenty of investment options out there for all sorts of investors, even those who are down on their luck. Find out the best tips to invest with no money and a few places to get started below. 

Can you invest with no money or should you save up?

First of all: is it realistic to want to invest with no money? That depends a lot on your objectives and goals, as well as the types of risk you’re comfortable with. Sometimes, US$1.000 is almost a fortune when used correctly. But for other people it’s important money that should be kept at hand in case of an emergency. 

That’s why we have to decide carefully on when to save up a little more (in the way that has the better interest rates at least) or to jump head first into the investing world. 

how to invest with no money
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When should you save up before starting?

Do you have a short-term goal you simply must achieve? In that case, saving is the best option because the money will remain the same, no matter what happens in the market. As long as you don’t withdraw and keep putting money into a savings account, even if just a little, you’ll reach your goal. 

This is important for those who have a time related goal. They must happen and be paid no matter what state the stock market is in. You can’t get your investments back as soon as possible when they’re invested in trades or stocks. And worse: at a given time you might have less than you started with. 

Our tip here is: if you really need to save, define an amount and divide it by the number of months for the deadline. Then you’ll know how much you must put in your savings account and how long it’ll take before you can start other investments. 

When to invest with no money?

When considering long-term results, just investing and keeping money in a savings account isn’t enough. Actually, because of overall inflation, you might have cash that has lost a lot of its value in your savings. Which means it can buy less than when you first put it there. 

So if you really want to get started with your financial life, to invest with no money is a good idea. Anyone who doesn’t have an objective in the next few months or years should prioritize creating passive income that is sustainable over the years. 

Another con of keeping your money in the bank is that you’ll get way less interest from a savings account. Even high yield ones get as much as 1%, while some safe and conservative investments can get about 8%. 

Tips to invest with no money (or just a little of it)

So you decided to make money and invest with no money or with the little you have right now. That’s fine, there are safe and quick return ways that allow you to grow your assets before you can invest in more robust funds. Find out the top 8 tips to start when you don’t have large amounts of cash on hand. 

1. Start with high yield savings account

Hold on a second, didn’t we just say that savings weren’t really recommended for those that want to invest? Well, we did but you have to start somewhere  and it’s better to start by earning interest in a high yield savings account

This is the ideal option for those who have never invested or saved before. We have a simple reason to recommend this: it builds a healthy financial habit of keeping a portion of your earnings separated. 

There are plenty of high yield savings with zero fees that allow you to start investing. After the first twelve months you’ll have a good enough amount composed of interest and how much you saved. 

2. Use your employment retirement plan 

This is great for tight-budget investors! A 401(k) or other retirement plan is a low cost investment that can guarantee a lot of security later on. It offers tax advantages for anyone who’s saving and also keeps you from sabotaging your own investment. 

Here is how it works: once you sign up for a 401(k) you must define the percentage of your salary that will be invested daily. Afterwards, this amount will be discounted weekly straight from your paycheck. Giving you no way out but actually investing. 

The employee chooses among a number of investment options that will yield reasonable returns. After a few years you can withdraw the money, waiting until retirement is ideal. 

3. Use a robo-advisor to invest with no money

If you want to invest with no money or just a few assets you need all the help you can get. That’s why robo-advisors exist! These are algorithms that do the extremely hard work of choosing the best fit of investments for you. 

To do this you just have to get started on an online investment platform. Afterwards, the robo-advisor will pick and choose the best portfolio for your money. Some platforms, such as Ally Invest, allow you to start with as little as US$100. Others don’t even have a minimum!

These services are much cheaper than a financial advisor since it isn’t a person managing funds. 

4. Invest with little or no money in the stock market

Many stock investors say it takes money to make money, but it couldn’t be farther from the truth! Even those who want to invest with little or no money can find success here as long as they use the right strategy and pick stocks wisely. 

Online platforms revolutionized the world of stock trading with easy and fast options to buy stocks. Some places allow you to begin with US$1 without having to pay any trade commissions. Anyone who is still starting can drip a little bit of money in stocks and understand how the market reacts before making a big bet. 

Another great investment are fractional shares, that give an investor a varied portfolio without having to use thousands of dollars. 

5. Choose low-initial-investment-funds to invest with no money

Have you heard of mutual funds? They are a type of investment that uses the money of all investors in the fund to acquire a variety of assets. However, many of them require a starting bid of US$500 to US$5000, making it a prohibitive option for anyone looking to invest with no money

First-timers that still have small savings can invest in low-initial-investment-funds that do basically the same thing, but start at US$50 to US$100 investments. This amount must be monthly so you can stay in the fund, but the returns are guaranteed and it’s a safe option. 

These programs allow you to set an automatic payment on your payroll a lot like employer retirement programas. As soon as you get your salary the investment will happen and allow you to get started without much trouble. 

6. Start by investing in knowledge

Sometimes individuals who have zero knowledge of investments, the stock market or funds decide they want to get rich and make money fast. In no time they’ve wasted all of their savings and blame the market. That’s why one of the best investments you can make to get started safely is on yourself through financial courses. 

We know money is short many times, but that isn’t an excuse. There are many sources of free knowledge around the web, such as: blogs (like ours), instagram and Youtube. Did you notice that all of those always you spend binge-watching series on Netflix could be used for something more productive? 

7. Invest low values in cryptocurrencies

Cryptocurrencies are a modern craze: from bitcoins to NFTs, everyone wants a piece of this brand new market that is still evolving. People who are starting out without much money can choose new digital coins that still don’t have market value, so they can buy a lot more and hold onto it. 

But don’t do this at random! Get educated and understand how to find out if a coin has an upward trend. Otherwise, your money will be wasted and you won’t get any significant payback. 

There are over 3.000 options to choose from and many platforms that can help you on the way. With this many options it’s easy to get lost, don’t make this mistake. Start small, but make sure you start smart. 

8. Improve your credit score to get loans

This option is for the most confident investors out there, those who have studied it all and believe they found a goldmine in the form of stocks or funds. If you’re so close to such a great investment why should you stop at just a few hundred dollars? Start by improving your credit score and go looking for loans, such as personal loans or home equity loans. They can help give you a headstart and make money fast. But be sure to plan monthly payments so that this doesn’t turn into a financial trap.

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