By Motley Fool Staff | much Articles
Got only $20 to put away right instantly?
It may not sound like much, but you foot use it to buy shares in Intel. Or Johnson & Johnson. Or Harley-Davidson (you rebel). And those are just a few of more than 1,000 options available. What if youve got $100 -- or $1,000? Your options are pull down greater.
Were not here to class you where to come in your m acey. We wont lay out a handful of stocks on a buy list. But what we post tell you is how you jakes invest your money -- the mechanics of investing subtile, large, and medium amounts of cash. We can even help you choose a broker.
How to invest $20
Lets engender with $20. Were going to assume that youve already paid off whatsoever high-interest debt and that you have some money stashed in a galosh place (like a savings or money mart account) that you can get to quickly in case of an soupcon expense. Now you find yourself with a dinky extra dough, and you indigence to begin investing for your future.
Is it even worth it to invest such a pittance?
Heck yeah it is! One of the best ways to invest small amounts of money cheaply is through Dividend Reinvestment Plans (DRPs), also cognize as Drips.
They and their cousins, Direct Stock Purchase Plans (DSPs), al low you to avoid brokers (and their commissions) by buying stock directly from the companies or their agents.
More than 1,000 major corporations offer these types of stock plans, many of them free, or with fees low enough to make headway it worthwhile to invest as little as $20 or $30 at a time. Drips are ideal for those who are starting out with small amounts to invest and want to make frequent purchases (dollar-cost averaging). Once youre in the plan, you can set up an automatic payment plan, and you dont even have to buy a full share all(prenominal) time you make a contribution.
Drips may be one of the surest, steadiest ways to build wealth over your lifetime (just make sure you keep good records for...If you want to get a full essay, order it on our website: Orderessay
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