How do I start investing with only $25?

Investing, Stocks, Starting Out
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November 2017
75% of people found this answer helpful

Yes, I think so.  TDA charges $6.95 per trade.  Thus the commission on your first trade will eat up more than 25% of your portfolio.  The return you can earn on $25 isn't going to make a difference in your life anyway.

Every month, when you sit down to pay your bills -- rent, utilities, credit cards etc. -- make a point of "paying yourself" too.  Put a set amount away into that TDA account.  Get into the habit of living without $100 or $200 every month.  Then as you start to earn more, increase the monthly deposit.  Pretty soon you'll have some real money. 

In addition, if your employer offers it, get enrolled in a 401(k) and put away money every month tax-deferred.  Take advantage of your company match, if there is one.  Between retirement savings and regular savings, your goal should be to have 20 times your annual living needs (after Social Security) by the time you retire.

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