How to start investing with very little money
Small savings make people afraid of losing everything to a market crash or a sudden emergency like a medical bill before they even learn how to build a portfolio. This fear, combined with confusion over whether to use a Roth IRA, 401(k), or demat account on a fixed income, prevents beginners from taking the first step.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
Found another way around this?
Share your steps and trade-offs so fellow engineers don't have to reinvent the wheel. No account required.
- 1Leaving money in a savings account2 people mentionedDid this help you?
- 2Saving money in a high-yield savings account or basic savings account2 people mentionedDid this help you?
- 3downloading a brokerage app to transfer funds and start smallDid this help you?
- 4building a small emergency fund firstDid this help you?
- 5investing in index funds instead of individual stocksDid this help you?
- 6Keeping savings in a traditional savings accountDid this help you?
- 7Putting money into high-yield savings accounts or money market funds for liquidityDid this help you?
- 8Allocating savings into Roth IRAs and index fundsDid this help you?
- 9Focusing on increasing income through career changes, education, or tradesDid this help you?
- 10asking for recommendations on online forumsDid this help you?
- 11following general personal finance step-by-step guides and flowchartsDid this help you?
- 12selecting popular brokerages based on peer suggestionsDid this help you?
- 13investing surplus monthly into broad-market fundsDid this help you?
- 14short-term crypto tradingDid this help you?
- 15maintaining a strict budget ratio of needs, wants, and savingsDid this help you?
- 16Watching hundreds of online videos and tutorialsDid this help you?
- 17Allocating savings into simple index fund portfolios like FZROX and FZILXDid this help you?
- 18Reading the personal finance wikiDid this help you?
- 19Buying a broad total world ETF like VTDid this help you?
- 20Reading books like The Simple Path to WealthDid this help you?
- 21building an emergency fundDid this help you?
- 22investing in a Roth IRA or Roth 401kDid this help you?
- 23investing in diversified mutual fundsDid this help you?
- 24using micro-investing apps like AcornsDid this help you?
- 25Reading personal finance wikis and Reddit guidesDid this help you?
- 26Learning about index funds and three-fund portfoliosDid this help you?
- 27Focusing on getting a job and increasing earnings before investingDid this help you?
- 28Following online personal finance flowcharts and guidesDid this help you?
- 29Delaying retirement savings to use part-time income for college expenses and social activitiesDid this help you?
- 30Buying broad market ETFs like XEQT or FTSE All-World instead of volatile tradingDid this help you?
- 31Limiting high-risk speculative trading to a tiny fraction of total investmentsDid this help you?
- 32Putting money into a 401(k)Did this help you?
- 33Reading the personal finance wiki and prime directive flowchartDid this help you?
- 34Putting cash into a high yield savings accountDid this help you?
- 35Contributing to an employer match retirement planDid this help you?
- 36signing up for a workplace 401k and deferring the matching percentageDid this help you?
- 37investing in specific funds or ETFsDid this help you?
- 38starting small with money you can afford to lose and investing in businesses you are a customer ofDid this help you?
- 39Using a physical piggy bank to save moneyDid this help you?
- 40Following personal finance wikis and prime directives for budgetingDid this help you?
- 41Reading reddit personal finance wikis and prime directivesDid this help you?
- 42Consulting with a local independent tax professional or CPADid this help you?
- 43Opening a standard or Roth IRA online independently and making regular purchases of index fundsDid this help you?
- 44Reading wiki resources and guides provided by financial communitiesDid this help you?
- 45Researching concepts before buying the first stockDid this help you?
- 46Working two jobs while going to schoolDid this help you?
- 47Living on very little and saving 20% or more of income once employedDid this help you?
- 48Following personal finance wikis, flowcharts, and the 50/30/20 budget ruleDid this help you?
- 49Investing in broad market low-cost index funds through reputable brokersDid this help you?
- 50Looking into opening a TFSA with WealthsimpleDid this help you?
- 51Reading subreddit wikis and common topic linksDid this help you?
- 52Opening a brokerage account with platforms like Charles Schwab or Fidelity to invest in low-cost ETFs like VTI or VOODid this help you?
- 53Building up 3 months of expenses in a bank account before starting to investDid this help you?
- 54Saving in cash for wants and learning the difference between needs and wantsDid this help you?
- 55Putting money into automated retirement accounts like a TSP or standard 401k without a broader strategyDid this help you?
- 56doing online researchDid this help you?
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“Is there maybe some minimum limit to have before considering investing in a long term savings bond or fund? I’m totally ignorant when it comes to investing, as I’ve never had anything to invest.”source ↗
“I’d rather not do anything high risk, as I couldn’t afford for it to turn into digital dust.”source ↗
“I’m a woman from a very low-income background, and I’m in my final year of physical therapy school. The only thing I’ve achieved so far is getting close to finishing my degree; I don’t own a car, a home, or have any savings, and I don’t even have a driver’s license. My entire income goes toward paying for college.”source ↗
“But I don’t want to end up like the people I see around me; I want to build something solid, yet I don’t know where to start investing or how to move forward.”source ↗
“Hello, I’m (27F) currently living in poverty, have a fixed income and make around $30K a year.”source ↗
“I still want to prepare for the future and I know investing in A 401k and Roth IRA is what everyone recommends.”source ↗
“It took me so long to save up for that 9k and I’m scared that I will have another medical emergency that will require me to use that money or something else might come up.”source ↗
“I’m also scared to add that money into investing, what if the market drops drastically and i completely loose it all?”source ↗
“I have essentially zero experience with investing or the stock market, and I’d like to change that before putting any significant amount of money into stocks.”source ↗
“Is there a sensible way to practice or learn about investing without putting much money at risk?”source ↗
“I’m 35 and honestly a little embarrassed to admit that I’ve never really invested outside of my 401(k).”source ↗
“Most of my money is just sitting in a savings account because I never learned what I was supposed to do beyond that, and now I feel like I’m starting pretty late.”source ↗
“For someone who is basically a complete beginner, what would you recommend as the first few steps?”source ↗
“I'm in my mid-30s and living in northern Europe. I am essentially starting from nothing. Net zero.”source ↗
“My salary is god awful and my job is physically demanding, gradually harming my body in the long-run. However I can't see much opportunity for progress or change.”source ↗
“My question is essentially, if you were in my situation starting from 0 at this age and with these circumstances. What would you do? What would you prioritize?”source ↗
“I don’t mind takings risks but what’s the best place to use the money I have to grow it?”source ↗
“Currently trying to get into investing since joining, 22m never invested before and wanted some advice on how I should.”source ↗
“Lately I have been getting a lot of content on Instagram about opening a Roth IRA. I know its something important I should do, but I am still a little nervous so I wanted to makes sure that I fully understand how and what to do.”source ↗
“If I do open one what is that process like and how much and how often should I be putting money into it. Anythings helps as I am very much clueless on what is best.”source ↗
“Hello folks, i just got confirmed employment and i need to start investing in stocks as SIP and i need some ideas and help my budged is 5000Rupees monthly and im planning to invest for least 10years and i starting from next month and i live in India and someone guide”source ↗
“I want to begin saving for my future, but I don’t know where to begin.”source ↗
“I was never taught or learned much about finances at all whatsoever.”source ↗
“I am completely lost, and want better for the future.”source ↗
“I have no idea how to invest or do this and i’m wondering if i’m in a good starting position or if something else may benefit me.”source ↗
“hey im new to this and have no idea what to look for, im just looking for something to put savings into and set myself up for the future any tips??”source ↗
“Currently I have around 165k~ just rotting inside my savings account.”source ↗
“My problem is like stated im not doing anything with my savings account money. I'm aware that scared money don't make no money and ive always said I'll invest it but im not sure where to start.”source ↗
“I’m a newly 19yo in Canada and I really want to learn how to invest and grow my money”source ↗
“I was looking into opening a tfsa with wealthsimple but I hoped you all could help me out a bit”source ↗
“What is the best fund or stocks i could invest in to make the most out of my money e.g. highest returns / dividends payout. I want some security but i am willing to go high risk.”source ↗
“thank you, ik there's different places to start one I didn't know if one was better than the other”source ↗
“last time while browsing on reddit i got to know about Roth IRA and downloaded fidelity but couldn’t go further steps. Maybe i was afraid to take steps with my money.”source ↗
“I want to know about trading and retirement planning but i see 100 of videos which makes me more confused.”source ↗
“I feel like I've been putting it off because I don't have heaps of money but I just want to get started and understand properly how it all works even if I'm just investing small amounts.”source ↗
“Right now, I have about 31k saved up, and I’m thinking of moving around 10k of that money into a simple etf, like VUN (I am located in Canada), and doing some DCA trading on something more volatile just for fun.”source ↗
“Let me know what you would do in this situation and what you think of my plan!”source ↗
“I somehow end up spending everything I have by the end of the month even with a decend salary.”source ↗
“The only thing which helps me save is my piggy bank.”source ↗
“I’m not sure if that matters or not. Anyway, how do I go about finding the best way to invest money every month for our future?”source ↗
“I know absolutely nothing about retirement or investing. I need someone to explain this to me like I’m 5.”source ↗
“We are young 30s and have always been self contract, sadly we have yet to set up a retirement account.”source ↗
“I know it is possible, just don’t know where to start. 🙏🏼any help will be sooo appreciate it!”source ↗
“I dont have a lot of money but i want to build a solid portfolio by the age of 20, could someone please advice me on how to go about it?”source ↗
“i also plan on opening a demat account for the same purpose.”source ↗
“now how to go about investing?”source ↗
“I went through several different websites that explains investing, but I'm still a little confused.”source ↗
“I don't have high income rn, so the investments will be small.”source ↗
“I don't understand any of the specific language yet, so please dumb it down a little.”source ↗
“I want to know how and where to invest, but I don't know where to start.”source ↗
“I don't have much money right now, but I would like to invest the little I have.”source ↗
“any great resources or speakers that yall would reccommend?”source ↗
“I want to start investing into my retirement now that I’ve started my career but I’m unsure where to begin and need educated on the process.”source ↗
“I am just totally unsure how much I should be contributing and what accounts to enroll in.”source ↗
“Really just trying to build my financial literacy in general”source ↗
Where this came up
People with this problem also raised
- 2How to start investing with fluctuating or seasonal income
- 6How do you actually start saving for a house?
- 7How to find a simple all-in-one bank and brokerage
- 7How are you actually supposed to spend invested money?
- 5How to invest an inheritance when you have no idea what you're doing
- 21How to start an online store with no money