Recently, two different people told me essentially the same thing: I never invested because I never accumulated enough money. Its a common belief, but also a deeply flawed one.
Let me be clear: there is no magic threshold required to begin investing. You dont need $10,000. You dont need $5,000. You dont even need $1,000.
When I first started investing back in 1985, I initially put less than $1,000 in the market through mutual funds. I didnt come from money, and I didnt wait until I had enough. I simply began with what I had. Over time, I continued adding small amounts when I could. I wasn’t trying to get rich quicklyI was building a foundation. And thats the part people often overlook.
The reality is wealth building is a process. You dont become an investor by making a single big move. You become an investor by forming the habit of consistently putting money to work, no matter how modest the amount.
Lets say someone invests $100 a monthwhich may be less than the cost of dinner out for two. Over 30 years, assuming an average annual return of 8% (less than the long-term average of the S&P 500), theyd accumulate more than $135,000. Thats not hypothetical. Its math. Its compounding. And it works whether youre investing thousands or just starting with tens.
The notion that you need to wait until you have enough is dangerous because it delays the most important ingredient in investing: time. The earlier you start, the more your money has a chance to grow. Starting small beats never starting at all.
Part of the problem is perception. Financial media often highlights people making six-figure trades or investing windfalls. That makes regular folks feel like what they have is too small to matter. But every seasoned investor I know started small. They started with what they had, learned the ropes, and let time do the heavy lifting.
Today, its easier than ever. There are no-commission brokers, fractional shares, and low-cost index funds that let you invest with almost any amount. If you can set aside $25 or $50, you can start building a portfolio. If you can commit to doing that regularly, youre ahead of millions who never take the first step.
So, if youve ever said, I dont have enough to invest, I urge you to rethink that. You dont need to start bigyou just need to start.
Theres no special dollar amount that unlocks the door to investing. The key is getting in the habit, even if the amounts feel small. The market doesnt reward perfectionit rewards consistency. And the sooner you start, the greater your odds of long-term success.
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