How can a self-employed single mother begin investing with $100 to $700?

I am a self-employed single mother with six children. I am interested in beginning investing. Is it smart to invest with limited income, or is investing only recommended for people who are affluent? I can invest $100 to $700. Where should I start?

Investing
Answers
Sort By:
Most Helpful
March 2018

Approaching your question from a financial planning perspective, there are several factors to consider. The first thing we suggest to clients is to understand your expenses and to create a budget. Once you know your budget, we recommend having 3-6 months of expenses saved in cash or savings as an emergency fund. Think of this emergency fund as a hedge against the unknown that you cannot afford to lose, and will be happy you have in case of a job loss or medical emergency. 

Once you have this emergency fund, and are looking to invest ona limited budget, there are many great websites and apps that allow for inexpensive investing. E-trade is a notable example of a site that will allow a certain number of free trades. I would recommend taking a risk tolerance quetionaire in order to determine your level of comfort, and investing in low cost ETFs based on the outcome. Another great option is the App Acorns. This program will allow you to round up purchases and invest the difference (example: buy a coke for $1.25, 75cents is invested). You can also choose to invest weekly amount automatically. 

Investing is certainly no longer for the wealthy, and every little bit counts!

March 2018
March 2018
March 2018
March 2018