The personal finance community is a funny bunch. We complain endlessly about the average person not having very much money saved up, and yet most of our investing articles assume the reader has mountains of cash to invest. When I first got hired at a bank, the bank organized the second week of the job as a marathon of credit training. The course had a detailed and promising curriculum, and everyone was excited to get learning.

They were experts in their field, and the career bankers had simply forgotten what is was like to start a career. Concepts that were second nature to them were completely foreign to us. They constantly talked over our head, and neither the teachers nor the students could speak to each other in the same language if our careers depended on it.

Today, I notice a similar phenomenon on the web. Millionaires retirees try to get people with only a couple thousand dollars, or less , to start investing. There are a few rules of investing which become even more important if you want to invest a smaller amount of money wisely:.

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Pulling the trigger on your first investment is probably the most nerve wracking experience of your entire investment career. Not exactly worth your time and effort. Yet again, that old bugger of percentages is here to discourage the small investor from getting too crazy with his trading strategy. I can remember my first stock purchase vividly.

11 Tips to Invest Your Money Wisely - Celebrating Financial Freedom

When I was wrong? Hundreds of dollars lost. My returns were lagging the index funds, by a lot! I was shooting myself in the foot, and I was spending tons of time and effort to do so! The wisest way to invest small amounts of money is almost identical to the best investing strategy for large amounts of money!

Building up a broadly diversified portfolio of many different stocks requires far too much capital for someone with a small investing budget. Instead, take advantage of what Warren Buffett considers the greatest advancement for the average investor — the index fund! With the purchase of one share, you can become instantly diversified in hundreds, if not thousands of the top companies in the world.

Both of these funds come in ETF equivalents, with lower minimum investments. How to decide between an ETF or mutual fund?

How to invest $50 wisely? - Finance Guide

Although it may not seem possible at first, I promise that consistently adding to your small investment will add up. I am long VTSAX. I am not an investment professional, registered investment adviser, certified financial planner, or anything of the sort.

This article represents my opinions. My Money Wizard is a personal finance blog authored by Sean, a something financial analyst by day and money blogger by night.

When he's not writing, Sean can be found cycling, skiing, or traveling the country. Your email address will not be published. How should you invest when the market is at all-time highs? How about when the market is crashing. Should you invest in real estate or stocks? The real estate VS stock market investing debate really boils down to what Can't figure out the difference between an ETF vs mutual fund?

The Money Wizard is here to help Learn about how tax loss harvesting works, how much it can save you on your taxes, and how to use it If you're reading this, you probably know that its important to invest early to let compound interest work its magic.

Warren Buffett was recently asked what investing advice he'd give to Lebron James. The advice he gave was so simple, anyone Anyone can be a successful investor during a bull market.

But stock market corrections and bear markets are where big mistakes I'd rather continue struggling with my finances. Learn how to make better choices that compound into long term wealth.

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My Money Wizard My Money Wizard is a personal finance blog authored by Sean, a something financial analyst by day and money blogger by night. Manoj April 24, at 4: Leave a Reply Cancel reply Your email address will not be published. The Stock Market Is Near All-Time Highs Or Crashing!

How To Invest A Million Dollars.

Investing In Real Estate VS Stocks: How To Decide Between An ETF Or Mutual Fund? Why Tax Loss Harvesting Should Be Part Of Your Tax-Efficient Investing Strategy.

How Much Should I Have In My k At My Age? Should I Pay Off My Mortgage Early? How To Start Investing In Rental Property.

What Is The Average Rate Of Return On A k? How Much Should I Have Saved For Retirement At My Age? How To Invest Money Wisely With Little Money. More in Index Investing. How To Invest A Million Dollars A millionaire shares how he would invest a million dollars if he could start over.

Picking a Side Should you invest in real estate or stocks? My Money Wizard February 20, Why Tax Loss Harvesting Should Be Part Of Your Tax-Efficient Investing Strategy Learn about how tax loss harvesting works, how much it can save you on your taxes, and how to use it Eric Rosenberg January 6, John Schmoll February 24, Nate January 11, All information on InvestmentZen.

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3 Virtual Stock Market Games That Help You Learn How To Invest

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