How to Start Investing With Just £100
Do you like the idea of investing but think that you don’t have enough money to make a start? You wouldn’t be the first, and you certainly won’t be the last. In the words of reassuring mothers around the world, everybody has to start somewhere! It’s commonly believed that investing is just for the rich; something that’s out of reach of normal people…up until recently anyway!Thanks to the explosion of technology from the noughties up until now, there are now new and exciting opportunities available to a much wider group of people than ever before. These opportunities have given normal hard-working people the chance to invest their money and earn attractive returns.
Whilst technology has helped to make the world of investing that little bit more inclusive, there are still barriers stopping people from taking the plunge. What barriers you ask? Well, they’re probably more obvious than you think. A lot of platforms only accept investment that meets a minimum requirement; often £1000 or more. Because of this, many people struggle to get started So, just what is the solution to that age old question ‘how to start investing’?
With technology moving forward at the pace it has over the last ten years, progress has been made in almost every part of our lives (apart from wireless printers – they’re still a nightmare). Nowadays, there are countless ways in which people can invest their cash. The introduction of smartphones and fintech apps has introduced a great deal of flexibility to the financial industry. Now people can invest from their tablet or mobile device, wherever they are, whenever they want. Not only has this flexibility changed how we invest physically, but it has also allowed us to have more flexibility with regards to how much we can invest.
With micro-investing platforms, you can invest much smaller amounts of money and still earn an interest rate that well outperforms inflation. £100 for instance, would be considered a great place to start earning attractive returns and to increase those even more if you harness the power of compound interest.
You Have to Invest Money to Make Money
As we’ve mentioned, £100 is a great starting point for many micro-investing platforms. But why stop there? As with most things in life, the more you put in the more you could get out. By regularaly topping up your £100 and rolling up the interest you earn you could soon be looking at a larger pile of money that’s growing very quickly.
With compound interest and a little bit of patience, it’s a strategy that could really end up paying off. One other thing to consider is that in time, you could even end up qualifying for some of the bigger investment platforms’ minimum investment requirements. With this comes (generally) higher interest rates and the potential for larger returns (although the investment may be riskier). Remember, slow and steady wins the race! Alternatively…
Whilst peer to peer lending can be a great way of building your capital, it’s also worth your while thinking outside the box. What could you invest in with just £100 to hand? Something that could reap long-lasting rewards spanning your entire lifetime? It’s simple, really, just look in the mirror! Instead of investing in unstable and volatile stocks and shares, why not invest in something that you know that you can rely on? Yourself! Think about it, by using that £100 to pay for an educational course- even if it’s just a one-off- you are furthering your skillset in a way that could lead you to more opportunities further down the line. You could end up learning things that help you land a new job, or, make you more desirable to employers. You could even take up a course in money management and learn how to become a savvy investor! In doing so, you could learn how to make the most of your money, even if it is just £100.