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The New Investing Mentality
It is common to hear people say “One day I hope I’ll have enough to invest”, or “I don’t have enough money to invest”.
If you have any desire to achieve financial freedom, then investing is a key strategy to use, but for a long time it has been something that was not easily accessible to everyone.
If you are anything like us, when I first came across investing, I had my questions!
- Doesn’t it cost thousands to invest?
- I don’t have a 401k or RothIRA. What do I even invest in?
- Isn’t investing for the rich? Plus, I don’t know how to begin!
Thankfully there are now countless ways to get into the stock market – and most that are beginner-friendly!
With the recent introduction of free investing apps and micro investing, the world of stocks is forever changing, and now is the time for you to start!
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What is Micro Investing?
Micro investing has become an extremely popular way for young adults and millennials to learn to invest – without the need for financial advisors or financial planner.
In fact, most platforms are completely free to use, some give free stocks and cash, and others cost pennies in order to invest!
By definition, micro investing involves spending very little money to purchase single stocks or fractions of shares.
Purchasing fractions of shares makes it more affordable and easier to learn about the stock market – much different than needing thousands to begin investing! Reason being, many “traditional” investing platforms require high minimum amounts or add on high fees while these apps don’t.
With these streamlined platforms, you don’t have to worry about fees that a brokerage firm would tack on, making this method far more user-friendly and affordable!
This form of investing is a great option for those of you who don’t have thousands in available cash on hand, and want to start practicing and learning about how investing works! Keep reading below to learn exactly how to begin!
($) Typical minimum for traditional investing accounts
How to Micro Invest
1. Download an Investing App
All the investing platforms we use are through mobile apps (although, most also offer desktop versions).
Below are 3 options we have used, so we know they work and are valid ways to start investing!
Option 1: Robinhood
Robinhood has grown to be a leader in mobile investing, with a simplified layout and countless happy users. The app is free and with our link below you can get a free stock to watch it grow and learn about the stock market!
It is a perfect place to start for it is easy to use, beginner friendly, and FREE. What’s not to love?
PRO: Free stock, ability to learn and watch the stock market without any investment
Get your free stock here!
Option 2: Acorns
This app has become a new favorite! Acorns, makes the “saving and investing” process 10x simpler than any other option out there.
At the cost of $1/month, it’s a simplified way to save and invest money, with the minimum of $5 to invest. Their “Round Up” tool allows you to save cash without even thinking about it – then, you can easily invest $5 or more in fractional shares within the same app!
PRO: Free $10, extremely easy way to save money and learn to invest for beginners
Get your free $10 here!
3. Stash
One of the most revolutionary apps out there is Stash, and it’s quickly proving itself to be a top contender for investing apps!
Unlike the other two apps, Stash gives the option to invest in not only stocks but also ETFs and bonds. It’s also an innovative option with the opportunity to invest in fractional shares, but gives you even more options to invest than the other apps.
PRO: Free $5 to invest, streamlined app that allows you more variety for investing
Get your FREE $5 here!
2. Practice With Free Stocks and Free Money
Once you choose your app (or apps!), it’s time to learn!
Note that it is always important to not throw your money into things you don’t understand – that’s why it’s so exciting that you can get free stocks and free money with the links above!
Use your free cash or stock to start watching the market. Below are some things to watch out for:
- How the stock(s) have grown over the past year, 5 years, 10 years, etc
- How the stock market goes up/down throughout the day, weeks, and year
- How the stock market changes depending on the news for the day
You can spend as much time as you need in this phase – just remember that every day you don’t invest money is day you lose!
3. Do Your Research
Once you start understanding the stock market, it is important to learn what to start investing your money into.
There are a few of our favorite books we’ve read over the years to make better investing decisions, and those are listed below!
- Unshakable by Tony Robbins
- Broke Millennial Takes on Investing by Erin Lowry
- Millennial Money by Patrick O’Shaughnessy
(Don’t like reading books? No worries! Learn from audiobooks or ebooks – plus, they’re usually cheaper!)
Start looking up podcasts, YouTube channels, and books to learn. Just remember to diversify your knowledge – not every method is best, so you need to find what is best for YOU!
4. Invest As Soon As Possible
Every second you don’t invest is a second your money doesn’t have the opportunity to grow!
Even if you just invest $5/week, it is far better than investing nothing! Plus, fractional and micro investing allows you to invest without wiping out your savings.
What’s great is that you can always back out. If you decide that a certain stock isn’t performing well, you can sell it through these apps and invest in another stock, index fund, or ETF.
No need to worry about being stuck with your stock for forever!
Summary
Investing is easier than ever before!
With recent economic uncertainty, there is never a better time to learn about the stock market. Using your free cash or free stocks, there is so little to lose, and so much to gain!
Take 10 minutes out of your day today to learn something new!
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