5 creative ways to start investing when you have little money to invest

The reasons to invest are straightforward: Grow your wealth over time, outpace inflation, and achieve financial goals.

But a surprisingly large number of people can’t participate in the markets and make the most of these opportunities because they feel they don’t have the money to invest. According to a recent Finder survey, 39% of U.S. adults say the number one reason they don’t invest is because they don’t have the money.

Investing is more accessible than you may think, though. And you can get started without much capital at all. Finder.com shares five ways to start investing with a small budget.

Many brokers offer signup bonuses to attract new customers. And while these are designed as marketing tools, they can be a great way to build portfolio momentum early on if you’re starting with a tight budget.

These bonuses usually come in the form of cash or free stock when you open an account and meet a minimum deposit requirement. For example, some brokers might offer a $50 bonus when you deposit $100 or a few shares of a stock when you create an account and deposit a certain amount. This bonus essentially gives you a head start with no risk on your end.

While the exact offers vary, popular platforms like Robinhood, SoFi Invest, and Webull frequently run promotions like these. Just make sure to read the fine print — some bonuses require you to keep your funds in the account for a certain period.

Compare bonuses across brokers and pick one that fits your goals. Even small rewards can make a difference when you’re building a portfolio from the ground up.

2. Contribute enough in your 401(k) to get the company match

If your employer offers a 401(k) match, contribute at least enough to get the full match — it’s free money. For example, if your employer matches 100% of your contributions up to 3% of your salary, contributing that 3% effectively gives you a 100% return right away.

It’s understandable that when money is tight, even small paycheck deductions can feel like a stretch. In fact, many people opt out of 401(k) plans for this very reason. A 2023 study by Principal found that employees who didn’t participate in their 401(k) plans often pointed to debt, everyday expenses, and low income as the main reasons.

But even contributing a small amount — just enough to get the company match — can be a powerful step. For instance, if you make $40,000 a year, contributing 3% amounts to just $1,200 annually, or $100 a month. If your employer matches that 3%, you’re essentially saving $2,400 a year, with half of it coming from your company.

That kind of boost can make a meaningful difference over time, and it doesn’t require a large upfront investment.

3. Leverage fractional shares to make your capital go further

Fractional shares let you buy a piece of stock even if you can’t afford a full share. Instead of needing hundreds or thousands of dollars to invest in a single share of a company like Amazon or Netflix, you can invest with as little as $1. You decide how much to invest and get that proportion of a share.

This flexibility is a game-changer when you’re starting with limited funds. It means you can start building a diversified portfolio without needing to save up large amounts first. For example, if a stock costs $400 per share and you invest $20, you’ll own 1/20th of a share. You still earn dividends, if offered, and benefit from price increases based on the portion you own — just like with a full share.

Many popular brokers — including SoFi Invest, Robinhood, and Charles Schwab — offer fractional shares, making it easier than ever to invest consistently, even with small amounts.

4. Automate your investing with micro-investing apps

Micro-investing apps like Acorns and Stash let you invest spare change from purchases or small recurring amounts. For example, if you buy a coffee for $3.50, the app rounds it up to $3 and invests the extra $0.50. It’s a low-effort way to begin building your portfolio without feeling the pinch.

Automating small amounts also consistently builds the habit of investing and allows your portfolio to grow quietly in the background.

5. Contribute to an IRA that pays a match

Along the same lines as 401(k) company matches and broker signup bonuses, a growing number of brokers now offer IRA contribution matches, essentially rewarding you for funding your individual retirement account.

These IRA matches work like mini bonuses: the broker contributes a small percentage of what you contribute to your IRA, many with no caps on the amount you can earn, up to the annual IRA contribution limit. For example, a platform might offer a 1–3% match on your contributions up to the annual IRA contribution limit, which is $7,000 for those under age 50 and $8,000 for those age 50 and older. Like the 401(k) match, that’s a bonus just for contributing, added directly to your retirement savings.

If you’re investing with limited funds, even a small match can noticeably boost your portfolio over time. And unlike a 401(k), you don’t need to go through an employer to get it — you can open an IRA on your own. Just read the fine print, like with all bonuses. Most IRA matching brokers require you to maintain the IRA and the amount you deposited to earn the match for a certain period, or you forfeit the match.

Platforms that offer IRA matches include Robinhood, SoFi Invest, Webull, Acorns, and Public, and the trend appears to be growing as competition among brokers increases.

Bottom line

Trying to invest when you don’t have much money can feel intimidating, but it doesn’t have to be. With the right tools and a little creativity, even small amounts can go a long way. Whether it’s grabbing a signup bonus, getting your 401(k) match, or buying a fraction of a stock, every step counts. The important thing is to start.

This story was produced by Finder.com and reviewed and distributed by Stacker.