New to Investing? Here's How You Can Get Started With $500.
I often hear people say, "I'll start buying stocks once I save up X amount of money." And that amount usually is in the thousands of dollars. Their idea is you need to invest a pretty big sum in order to win in the stock market. But I've got great news for you: That actually isn't true. You can start investing with any amount of money, from a few dollars to a wad of cash. And if, overall, you make wise choices, you can set yourself off on the path to wealth.
So, if you're new to this, consider how much you can afford to invest after your bills are paid and you've set aside funds for any potential emergencies. Let's imagine that amount is $500 -- not every month, but just as one initial investment. Here's how to get started.
First, it's important to consider your relationship with risk. If the idea of a stock dropping in the double digits makes you cringe and you're uncomfortable with volatility, you're better off favoring stocks that won't keep you up at night. By this, I mean companies you can count on for earnings growth over time and companies that aren't overly sensitive to the economy.
Source Fool.com
