Comment investir selon ses moyens, même les plus modestesJune 29, 2016

How to Invest within Your Means, Even the Most Modest

There is an urban legend that, in order to invest your money, you need to have a fortune to invest. Such is not the case. In fact, while large stock transactions sometimes result in profits of millions or billions of dollars, investment is not only the domain of the elderly, rich, and famous.

That's why there are several ways to invest your savings, even when they are more modest, from as little as $500. In short, whether you want to prepare for your retirement, increase your revenue, or save for other projects, keep your eyes open for the best ways to invest your savings.

Some Principles to Keep in Mind Before Starting to Invest

To invest wisely, you must first have your personal finances under effective and responsible control. You must therefore ensure the proper state of your finances, including:

  • Establishing an emergency fund. Trying to invest without assuring a “cushion” of money to allow you to deal with the unexpected (medical bills, car and home repairs, etc.) is a scenario to be avoided at all costs. Make sure the odds are in your favour in confronting market fluctuations.
  • Eliminate your debts and high-interest credit cards. This type of card will penalize your ability to save money by forcing you to pay a lot of interest.

Invest According to Your Resources and Ambitions

Most experts agree that one of the best ways to invest small amounts in the market is using dividend reinvestment plans and direct investment plans.

These plans offer shareholders the chance to acquire shares at minimal cost, directly from them. They are especially handy for the lowest incomes, since they allow you to invest small amounts at regular intervals.

To Buy the Stock You Want

When you invest your savings, the key is to focus on long-term investments and especially to diversify your portfolio. Diversifying your investments can better allow you to overcome the vagaries and volatility of the market.
Of course, buying shares today does not entail going onto the exchange floor to shout out your demands. It is recommended that you go through a broker. Brokers (who are in two major categories: traditional brokers and discount brokers) can offer you expert financial advice to manage your account.

However, traditional brokers can be quite expensive. Fortunately, the Internet now offers a multitude of brokers offering their services for very low prices. They will not overly concern themselves with your investments, but will save you a lot of money. 

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