How to Invest With No Money

How to Invest With No Money
09 Apr 2020

Today, the average American family has a net worth of $692,100.

This sounds like a lot, but when you look at the median, 50% of American families fall below $97,300. For many families, there’s little room in their budget for dedicating money towards investments. 

But this isn’t necessarily true. Knowing how to invest with no money is about getting creative with your investing. 

Whether you have $1,000, $100, or even $25, you can get started investing today. Not sure where to begin? Try one of these ideas… 

High Yield Savings Account 

Instead of regularly putting change into a jar, start putting money into a high yield savings account. These days, you can find several reputable banks offering this type of savings account with a rate of around 2%. 

This is significantly higher than a standard national bank account that could be as low as .01%. This is a great way to grow some seed money so you can start investing. It’s also a safe way to increase your savings if you aren’t ready for the risk of certain investments. 

Real Estate Crowdfunding 

You can invest in real estate without having enough to buy a property outright. With crowdfunding, investments start at a couple of hundred dollars. Your contribution gets combined with several other people. 

Everyone that puts money in becomes a part-owner and investor. You then receive a portion of the profits from renting or selling the property. 

Investing Apps 

There are several apps that let you begin investing with a low amount of cash. Many of these apps charge little or no fees. All you need to do is connect your debit or credit card, then choose your investment style. 

If you’re a beginner, conservative may be a safer choice. For those looking to grow their money quicker, an aggressive approach may be better. 

Certificate of Deposit (CD)

This is one of the more traditional methods of investing. They are incredibly safe, and you can know in advance what your return on investment will be. Look for a fixed-rate CD to know what the value will be when it matures. 

The advantage of a CD is that you can start with a relatively low amount of cash and have the security of working with a bank. The disadvantage is that they tend to have lower rates of return than other investment options. 

Employer-Sponsored Retirement Plan 

If you find it a struggle to save up enough seed money, then consider contributing to your company 401(k) plan. Your monthly contribution gets taken out of your paycheck before you get paid. This way, you never see the money, and you won’t be tempted to spend it. 

Look at the plan your employer offers; many have a contribution matching policy. Try to maximize your investment by contributing the maximum the employer will contribute. 

If you genuinely feel that you can’t spare anything from your budget, wait until you get your yearly raise. Then dedicate the value of the raise towards your retirement plan. 

Know How to Invest With No Money

As you can see, you don’t have to have a lot of money to start investing. Knowing how to invest with no money is about getting creative and having realistic expectations. 

As your money grows, you can reinvest your returns and exponentially increase your family’s worth. 

Contact our team today and let us help you develop an investment strategy. 


Daryl Seaton