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The average American lives paycheck to paycheck, meaning there is very little money saved up for emergency funds or investment opportunities. In lieu of Americans saving money and investing their income to gain more money and be less reliant on their paycheck, they lean towards credit as a means to get by. This change over the past several years has seen debt amongst Americans rise and the investment/savings decrease substantially. Typically, people are scared to save money or invest money due to the fact they believe it requires a significant amount to see any results. However, this couldn’t be further from the truth. Here are 3 ways to invest with minimal funds. 

Maximize your employer’s retirement options: 

Many companies offer varying options for retirement, including 401K. As 401K is the forefront for most employers and employees to use for their retirement, it’s crucial to know how your employer treats 401K. Some employers will offer a match up to a certain percentage for the amount you contribute to a 401K. For example, if you contribute 5% to a 401K and the employer will match anything between 5% and 7%, it is beneficial to choose the ladder option as the more you store into your 401K, the more money your employer will allot to your 401K. While it may seem difficult at first, see what expenses you can decrease to fund the extra money into your 401K. If your employer does not have this option, then start out small with 1% and increase it every year as your income increases and your expenses decrease. 

Try low-investment mutual funds: 

Mutual funds are a securable asset that provides you with a portfolio of stocks and bonds in one simple exchange, making it easy for new investors. Typically, mutual funds require a range of anywhere between $500-$5,000  to begin investing in mutual funds. However, there are some firms that are willing to avoid investing that much all together so long as you invest between $50 and $100 each month automatically to keep the mutual fund active. Some mutual funds can be set up through your employer, but some may require you to go to a firm to set it up to be drawn automatically from your account. 

Savings Bonds: 

Savings bonds are provided by the US Treasury. They are a securable note that you purchase either through the US Treasury website or a local financial institution that sells them. When you purchase one, there are different price points ranging from $100 to $1000. Start out a few $100, but one caveat is don’t buy many savings bonds. They don’t accrue a noticeable amount of interest, and it takes years to be able to redeem the bonds for any amount greater than the initial investment. Nonetheless, savings bonds are still a great tool for new investors to begin with.

Disclaimer: This article is meant strictly for informational purposes. Not intended as financial or investment advice. Do not misuse or misconstrue the information in this article. Seek advice from your personal financial advisor on matters pertaining to investments/finances.