10 Investments You Can Make For $20 a Month
You may want to invest, but investing may seem like something that is above your intelligence or income range. You may think it's something for people who are "in the know" and not you. You may even think you can't afford to invest.
Maybe you have some idea that you want to invest in stocks or just open a brokerage account, but you feel like you have no investing strategy, don't even know investing basics and definitely do not have enough money to even start.
You do have enough money to start. You can open an online brokerage account with literally nothing, and start making deposits as you can.
What Can I Do With $20 a Month?
If you're looking for ways to invest your money but you don't have a lot of cash to spare, you're in luck. There are a number of investment options available to you that require just $20 per month.
Step By Step Investing
We will walk you through step by step investing with 10 different investments that you can make with just $20 per month. Some of these investments may be familiar to you, while others may be new. But all of them have the potential to grow your wealth over time!
Here are ten investments you can make for $20 a month:
#1 Index Funds
What are Index Funds?
Index funds are a type of mutual fund that tracks a specific market index, such as the S&P 500. Index funds give you instant diversification because they own a piece of every company in the S&P 500.
Index funds are a great investment for beginner investors because they are low-cost and easy to understand. And since they track an index, there is no need to constantly monitor your investment or make active trades.
With index funds, you can get exposure to a broad swath of the stock market with just one investment. And because they're passively managed (meaning they don't require a lot in terms of fees) index funds are some of the most affordable investment options available.
Index funds are a great way to get started in investing because they're simple. If you're looking for an easy way to invest your $20, Index funds are a popular choice for investors because they offer diversification and low fees.
Index funds are a way to invest in the stock market in a very diversified way. If you invest in stocks, you are buying a piece of a company that will be worth more or less in the future. When you buy an index fund, you are buying a tiny piece of every company in the index.
For example, the Vanguard S&P 500 Index Fund ("VFINX") tracks the S&P 500 stock market index. This means that it owns a tiny piece of every company in the S&P 500 index.
The Vanguard S&P 500 Index Fund has an expense ratio of 0.14%, which means that for every $100 you invest, you will pay $0.14 in fees.
This is a very low fee, and it is one of the reasons that index funds are a popular choice for investors.
You can start investing in index funds with as little as $20 per month.
Many brokerages offer index mutual funds with no minimum investment required. For example, Fidelity Investments offers the Fidelity ZERO Large Cap Index Fund (FNILX), which has an expense ratio of 0.
This means that you will pay $0 in fees for every $100 you invest.
#2 Target-Date Mutual Funds
What Are Target-Date Mutual Funds?
A target-date mutual fund is a type of mutual fund that automatically rebalances itself and becomes more conservative as the target date approaches.
Target-date mutual funds are a popular choice for retirement investing because they are easy to set and forget.
For example, the Vanguard Target Retirement 2025 Fund (VTRUX) is a target-date mutual fund with a target date of 2025. This means that it is designed for investors who plan to retire around the year 2025.
The Vanguard Target Retirement 2025 Fund has an expense ratio of 0. 15%.
You can start investing in target-date mutual funds with as little as $20 per month. Many brokerages offer target-date mutual funds with no minimum investment required.
What Are ETFs?
ETFs are similar to index funds in that they track a specific market index. However, ETFs are traded on stock exchanges, like individual stocks. This means that you can buy and sell ETFs throughout the day.
ETFs are a popular choice for investors because they offer the ability to trade throughout the day and they are very low-cost.
You can start investing in ETFs with as little as $20 per month. Many brokerages offer ETFs with no minimum investment required.
For example, Vanguard offers the Vanguard S&P 500 ETF (VOO), which has an expense ratio of 0.03%. This means that you will pay $0.03 in fees for every $100 you invest.
What Is A Robo-Advisor?
A robo-advisor is a type of online financial advisor that uses algorithms to provide investment recommendations. Robo-advisors are a popular choice for investors because they offer diversification and low fees.
For example, the robo-advisor Betterment has an annual fee of 0.25% on balances up to $100,000. This means that you will pay $25 in fees for every $100,000 you invest.
You can start investing with a robo-advisor with as little as $20 per month.
#5 Individual Stocks
What Are Individual Stocks?
Another option for investing your $20 is to buy individual stocks. This can be a more risky investment than some of the other options on this list, but it also has the potential to offer higher returns.
You can start investing in individual stocks with as little as $20 per month. Many brokerages offer fractional shares, which allow you to buy a portion of a share of stock.
This means that you can invest in even the most expensive stocks for just $20 per month.
What Are Bonds?
Bonds are a type of investment that pays periodic interest payments. Bonds are a popular choice for investors because they offer diversification and stability.
For example, let's say you buy a bond for $100 that pays an annual interest rate of five percent. This means that you will receive $5 in interest payments each year.
Bonds can be a more conservative investment than some of the other options on this list, but they also have the potential to offer higher returns.
You can start investing in bonds with as little as $20 per month. Many brokerages offer bond mutual funds and ETFs with no minimum investment required.
#7 Real Estate Investment Trusts (REITs)
What Are REITs?
A real estate investment trust (REIT) is a type of investment that owns and operates income-producing real estate.
REITs are a popular choice for investors because they offer diversification, monthly dividends, and the potential for high returns.
For example, the Vanguard Real Estate ETF (VNQ) is an ETF that invests in REITs. The Vanguard Real Estate ETF has an expense ratio of 0.12% and a dividend yield of four percent.
You can start investing in REITs with as little as $20 per month. Many brokerages offer REIT mutual funds and ETFs with no minimum investment required.
#8 Peer-to-Peer Lending
What is Peer-to-Peer Lending?
Peer-to-peer lending is a type of investment that allows you to lend money to businesses and individuals.
Peer-to-peer lending is a popular choice for investors because it offers the potential for high returns. For example, let's say you invest $20 in a peer-to-peer loan with an annual interest rate of 20 percent.
If the borrower repays the loan, then you will receive $24 in interest payments. That's a return of 20 percent on your investment.
You can start investing in peer-to-peer loans with as little as $20 per month.
What is Crowdfunding?
Crowdfunding is a type of investment that allows you to invest in startups and other businesses.
Crowdfunding is a popular choice for investors because it offers the potential for high returns.
For example, let's say you invest $20 in a crowdfunding campaign with a 20 percent return.
If the business is successful, then you will receive $24 in return on your investment.
You can start investing in crowdfunding campaigns with as little as $20 per month.
#10 Micro-Investing Apps
What Are Micro-Investing Apps?
Micro-investing apps are a type of investment that allows you to invest small amounts of money in a variety of investments.
Micro-investing apps are a popular choice for investors because they offer the potential for high returns and the ability to invest small amounts of money.
For example, let's say you invest $20 in a micro-investing app with an annual return of 20 percent.
If the app is successful, then you will receive $24 in return on your investment.
You can start investing in micro-investing apps with as little as $20 per month.
So Now What?
There are a number of different investments you can make for just $20 per month.
The key is to find an investment that fits your risk tolerance and investment goals.
There are many ways to find that $20 a month; skip the Uber and walk, cook instead of getting takeout one night of the month, or use a tax refund or surprise gift.
The best gift to yourself is saving for your future.
Trust me, the you in ten years is going to thank you!
Perhaps you are one of many same sex couples wanting to buy a house. Maybe you're transitioning and about to get married.
Planning for your financial future, whether creating a budget, retirement planning, researching investments, estate planning, or even just asking for advice are important steps for any individual or family.
Although milestones have been achieved towards marriage equality, LGBTQ+ rights, and equality for same sex couples, there is still quite a road ahead in terms LGBTQ+ community access to mainstream financial planning.
The Obergefell decision on June 26, 2015 overturned Baker and requires all states to issue marriage licenses to same-sex couples and recognize same-sex marriages performed in other jurisdictions.
The landmark civil rights case gave same-sex couple the right to marry nationwide.
Obergefell granted access for the LGBTQ+ community to more than 1,100 federal benefits; things like spousal protections in the event of death, filing joint tax returns and putting spouses on health insurance on a pre-tax basis.
However, many complications persist in relation to these issues and LGBTQ+ financial planning for those who...
There are so many different credit cards on the market, and it can be difficult to determine which one is right for you.
However, as women we absolutely should not be afraid when it comes to getting a credit card and using it responsibly.
In fact, new research shows, we make better decisions with our credit cards than men. A recent Lantern by Sofi study showed sixty-five percent of women named credit building as their top reason to apply for a new credit card, compared to 51% of men.
Experian data also shows men and women's credit scores, on average, are about the same. This despite having a gender wage gap of 83 cents for full-time, year-round workers!
Which Card is Best For You?
So which credit card is best for you?
Can You Work From Anywhere? Perhaps This is An Opportunity to Lower Your Tax Burden
Working from home has become the norm for so many careers now. For many people, that means, literally "work from anywhere."
Are you considering a move to a state where you can also lighten your tax burden? Moving to a state where you can enjoy a better quality of life and hold on to more of your personal income may be on your radar.
Relocating could improve your lifestyle, and your personal finances.
Here are the U.S. states with no state income tax.
Women Educating Women
When it comes to the best personal finance books, there are a lot of different opinions out there.
Don't you wish you had a best friend who was a money expert and would tell it like it is when it comes to things like personal finance, financial independence, building wealth, budgeting, how to save, and building your credit?
You probably want the friend who is kind, but doesn't sugar coat things. You know, the one who won't let you leave the house in an ill-fitting dress and fixes your lipstick before a group photo?
The 10 Best Banks to Open an Account: Why They Are the Best
So you want to know which is the best bank to open an account.
Whether you are opening a checking account or savings account, money market account, or other account, we know you want to choose the best bank for you.
First of all, let's get in the right mindset. The bank is not doing you a favor by "allowing" you to open an account with them.
Banks make money by...
Are you looking for ways to save on your taxes this year? If so, you're in luck! In this blog post, we will discuss the 10 best tax tips to help you save money on your tax bill.
Know the Tax Code
Whether you are self-employed or just trying to get a tax refund, these tax tips will help you reduce your tax liability and keep more money in your bank account. Read on for some simple tax advice to save you money.
#1 Deduct Your Business Expenses
If you are self-employed, you can deduct business expenses from your taxable income.
This can include things like office supplies, advertising costs, and travel expenses. Be sure to keep track of all of your business expenses so that you can claim them on your tax return.
If you're looking to change your financial situation, it's important to start with your mindset. A positive money mindset is key to manifesting wealth and success.
You need to believe that you are capable of great things. You need to ignore your doubters and haters. You need to construct a clear plan and execute, despite people telling you you can't.
We need to find reasons we can make it, not reasons we can't.
These books embrace this mindset.
The Best Money Mindset Books
In this blog post, we'll list five of the best money mindset books for you to read.
Rich Dad, Poor Dad
We're going to start with our number one pick, the grandaddy, or rather, the daddy, of all personal finance books: Rich Dad, Poor Dad by Robert Kiyosaki.
Rich Dad, Poor Dad is really the closest you can get to a literal manual for the positive money mindset. Rich Dad, Poor Dad is packed with financial advice.
Rich Dad, Poor Dad makes many lists of top personal finance books, and there is good reason why.
Rich Dad, Poor Dad teaches us that the key to financial freedom and escaping the rat race is financial education and financial intelligence.
Gaining financial intelligence means you need to pursue financial education through books, seminars, courses, videos, podcasts, webinars, or any other medium to constantly improve your financial literacy and financial IQ.
Rich Dad Poor Dad says that we are always learning and need to constantly study and improve.
Rich Dad Mentality
Kiyosaki tells the story of his "rich dad" (his friend's dad) and his "poor dad" (his dad).
"What Is An NFT?"
This is not a stupid question. Guess what, a lot of people don't know what NFTs are and you are in the right place, because we are going to explain NFTs to you.
Congratulations for taking this step on your personal finance journey.
NFT stands for Non-Fungible Token
NFT stands for non-fungible token.
What does that even mean?
"What Is Cryptocurrency?"
This is not a dumb question.
First things first: the image above is deceiving. When you buy cryptocurrency, you will not receive an actual coin as shown above.
According to a recent report from Gemini (that is a cryptocurrency exchange) 26% of current crypto holders in the United States are women.
By educating ourselves about cryptocurrency, women can have the confidence to penetrate this industry and get more involved in the crypto world.
So, in Plain English, What Actually Is Cryptocurrency?
Cryptocurrency is a digital or virtual currency that uses cryptography to secure its transactions and to control the creation of new units.