How To Start Investing With A Small Budget

It’s Sunday, 19th May 2024, and in this week’s roundup, learn in 5 minutes or less:

• Career Advice: How To Start Investing With a Small Budget

• Mindset: A Mindset Perspective for Paying Off Debt Faster

• The Weekly Round-up: Sony going up against Google in a Tech battle, Chinese electric vehicle (EV) maker Nio has unveiled the first car to rival Tesla.

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CAREER CORNER

How to Start Investing With a Small Budget

Hey there, future investors! I know, I know—when you hear the word "investing," you probably picture Wall Street big shots in expensive suits, right? But guess what? You don't need a huge bankroll to get started on your investing journey. In fact, you can start with just a little bit of cash and build your way up.

Let me show you how I started my investment journey….

Start with Your Spare Change

If you've got a smartphone (which I bet you do 😆 ), you can start investing your spare change. Apps like Acorns, Trading 212, Moneybox and Moneyfarm round up your everyday purchases to the nearest dollar and invest the difference for you. It’s like a digital piggy bank, but instead of just saving, you also invest in a diversified portfolio.

Take Advantage of Robo-Advisors

Robo-advisors are game-changers for beginner investors. These automated platforms create and manage your investment portfolio based on risk tolerance and goals. Betterment and Wealthfront are popular options, and they don’t require a large initial investment. You can start with as little as $500—or even less!

Use Low-Cost Index Funds

Index funds are a fantastic option for those starting out. These funds track a specific market index, like the S&P 500, and offer a way to invest in a broad range of companies without the high fees. Many brokerage firms, such as Vanguard and Fidelity, offer low-cost index funds with low minimum investment requirements.

Automate Your Investments

One of the best ways to grow your investments is to make regular contributions. Automate a small amount to be transferred from your bank account to your investment account every week or month. Even $50 a month can grow significantly over time, thanks to the power of compounding interest.

Educate Yourself

Knowledge is power, my friends! Take the time to learn about investing by reading books, watching YouTube videos, or even taking free online courses. Websites like Investopedia are great resources for beginners. The more you know, the more confident you'll feel about your investment choices.

Be Patient and Stay Consistent

Investing isn’t a get-rich-quick scheme. It takes time for your money to grow. The key is to be patient and stay consistent with your investments. Keep your emotions in check and avoid making impulsive decisions based on market fluctuations.

Consider Fractional Shares

Did you know you can buy a piece of a stock instead of a whole share? Platforms like Robinhood and Stash allow you to invest in fractional shares of companies, which means you can start investing in big-name stocks with as little as $1.

Set Realistic Goals

Last but not least, set realistic and achievable goals. Whether saving for a down payment on a house, a dream vacation, or just building a safety net, having clear goals will help you stay motivated and on track.

So there you have it—some simple ways to dip your toes into the world of investing without needing a fat wallet. Remember, everyone starts somewhere, and the important thing is to start.

Your future self will thank you!

Until next time,

Anokye - Cofounder, The Careerguard

P.S. Got any investing tips or success stories to share? Drop me a line—I’d love to hear from you!

👉Follow us on Instagram; we plan to conduct a series on your money mindset and its impact on career decisions over the next few weeks; comment and engage with us your thoughts when you see the posts…

GET MORE SH*T DONE

A Mindset Perspective for Paying Off Debt Faster

Paying off debt can feel like an uphill battle, but approaching it with the right mindset can make a world of difference. Shifting your perspective and adopting effective strategies can help you tackle your debt more efficiently and with less stress.

After completing my MBA, I also incurred a lot of debt in student loans and credit cards. So when I got my first job, I decided to tackle my mountain of debt. I knew it wouldn't be easy, but it was a necessary step towards my ultimate goal of achieving financial freedom. I was determined to turn things around.

The first and most important step was adopting a positive attitude. Instead of feeling overwhelmed by my financial situation, I focused on the benefits of being debt-free—like reduced stress and more financial freedom. I visualized my success and celebrated small wins along the way, which kept me motivated.

Setting clear, achievable goals was crucial. I broke down my debt into smaller, manageable chunks and set specific deadlines for paying each one. This approach made the process feel less daunting and more attainable. I decided to use the debt snowball strategy to prioritize my debt balance size, where I paid off the smallest debts first and then moved on to the next until I completely cleared all my debt. For some, you may want to use the debt avalanche strategy, where you would tackle your highest interest rates first. Creating a solid debt repayment plan helped immensely.

Another key aspect was cultivating financial discipline. I not only committed to a budget but stuck to it, focused on my needs over my wants, and avoided unnecessary expenses. Throughout the journey, I realized the importance of building an emergency fund, as life throws unexpected expenses at you. By saving a small amount each month, I created a safety net that allowed me to handle these types of expenses without adding to my debt, which gave me peace of mind.

All in all, educating myself on personal finance was the key. There are many aspects of personal finance that we are not taught in school, and as such, I had to learn. I read books, listened to podcasts, and, through my own failures, learned to manage my money and debt. The more I learned, the more confident I felt in making informed financial decisions and correcting my past mistakes.

By adopting these mindset strategies, I am motivated and focused on my journey to becoming debt-free. Each step has brought me closer to financial freedom, and the lessons I learned along the way were invaluable.

If I can do it, so can you.

Stay positive, stay disciplined, and take it one step at a time.

Your future self will thank you!

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MEMES & BANTER

Before You Go

Business: Chinese electric vehicle (EV) maker Nio has unveiled the first car from its new lower-priced brand, Onvo, directly challenging Tesla's best-selling Model Y. The L60 SUV, starting at 219,900 yuan ($30,465, £23,990), is over 10% cheaper than Tesla's Model Y, priced at 249,900 yuan. This announcement coincides with US President Joe Biden's decision to quadruple the import tax on electric cars from China.

Tech:  Sony Music, the world's largest music publisher, has accused tech giants Google, Microsoft, and OpenAI of unauthorized use of its artists' songs to develop artificial intelligence (AI) systems. Representing stars like Beyonce and Adele, Sony Music has sent letters to over 700 firms, demanding to know if they have used its songs without permission and forbidding any further use for AI training, development, or profit.

Celebrity: Netflix's wild Tom Brady roast, Gisele Bündchen, Brady's ex-wife, is reportedly "disappointed" with the raunchy jokes. Roastmaster General Jeff Ross confirmed that Brady abided by the "anything goes" rules and was kept in the dark about the surprises and jokes.

QUOTES & MOTIVATION

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