You might have heard the advice to start investing as early as possible, but maybe you’re wondering, “Can you start investing with a small amount of money?” or “How can you make money investing small amounts?” The good news is, absolutely yes. In 2025, it’s easier than ever to start investing with small amounts of money. Small investments can snowball over time and turn into significant wealth, especially when you start early and stay consistent.
Whether you’re wondering how to start investing money with just $5 or $100, or how you can make money with small investments, there are plenty of ways to get your foot in the door. The key is finding the right approach that works for your goals, risk tolerance, and time horizon.
Let’s break down how to start investing with little money, the best ways to make it work for you, and how even beginners can get started with as little as a small amount of capital.
Why You Should Start Investing with Small Amounts of Money
Before we dive into the how, let’s address why you should consider investing even if you only have a small amount to start with.
Compound Growth
One of the most powerful forces in investing is compound interest. The earlier you start, the more time your money has to grow. Even small amounts invested regularly can grow into something substantial over time.
Learn and Gain Experience
Starting small allows you to dip your toes into the investing world without risking much. You’ll be able to learn the ropes without feeling overwhelmed.
Accessibility
Many platforms today allow you to invest with small amounts, making investing accessible for almost everyone.
Now, let’s explore how you can begin investing today with just a little capital.
1. Start With Fractional Shares
What Are Fractional Shares?
A fractional share is exactly what it sounds like. Instead of having to buy a full share of a stock which can sometimes cost hundreds or even thousands of dollars, you can buy a portion of that share.
For example, if you want to invest in Amazon but don’t have $3,000 for a single share, you can buy a fraction of it for a fraction of the price, maybe $50 or $100.
How This Helps Small Investors
Fractional shares are a game-changer for beginners. They allow you to invest in high-cost stocks with small investments. Platforms like Robinhood, Freetrade, M1 Finance, and Stash offer fractional shares, making it easier for anyone to invest in big names like Apple, Tesla, or Microsoft without needing to come up with thousands of dollars.
How to Start
Choose a platform that offers fractional shares
Set up an account and deposit a small amount, such as $5 or $10
Pick a stock you’re interested in and buy fractional shares
Watch your investment grow as you make small, consistent contributions
2. Use Micro-Investing Apps
What Is Micro-Investing?
Micro-investing is the practice of investing small amounts of money, often by rounding up your purchases to the nearest dollar and investing the spare change. Apps like Acorns, Stash, and Qapital make it easy for you to start investing with just your spare change.
For example, if you buy a cup of coffee for $3.50, the app will round it up to $4 and invest the extra $0.50. Over time, this adds up without you even noticing it.
How This Helps Small Investors
Micro-investing is perfect for anyone who wants to invest but doesn’t have a lot of money to spare. It’s easy to set up, and you can start with just a few dollars. Over time, the power of compounding can help your small investments grow into something meaningful.
How to Start
Download an app like Acorns or Qapital
Link your bank account or credit card
Set up automatic round-ups for your daily purchases
Watch your spare change grow into investments
3. Invest in Exchange-Traded Funds (ETFs)
What Are ETFs?
An Exchange-Traded Fund is a type of investment that holds a collection of assets, such as stocks, bonds, or commodities. ETFs allow you to buy a diversified portfolio of investments for a relatively low cost.
How This Helps Small Investors
ETFs are an excellent way to invest with small amounts of money because they offer diversification without requiring a large investment. For example, with an ETF like the S&P 500 ETF, you can invest in the top 500 companies in the US without having to buy individual stocks.
Most ETFs can be purchased for under $100, making them ideal for beginners looking to invest small amounts.
How to Start
Choose a brokerage that offers low-cost ETFs, such as Charles Schwab, Vanguard, or Robinhood
Select an ETF based on your interests or goals
Start with a small amount, such as $50 or $10,0 and add to your investment over time
4. Robo-Advisors for Hands-Off Investing
What Are Robo-Advisors?
A robo-advisor is an automated platform that creates and manages a portfolio for you based on your financial goals and risk tolerance. Popular robo-advisors like Betterment, Wealthfront, and Ellevest make it easy to get started with small amounts.
How This Helps Small Investors
Robo-advisors are a great option for beginners who may not know where to start or how to build a diversified portfolio. These platforms automatically invest your money in a mix of assets based on your preferences.
How to Start
Sign up for a robo-advisor platform like Betterment or Wealthfront
Answer a few questions about your goals and risk tolerance
Deposit a small amount like $10 or $50 and let the platform handle the rest
Your portfolio will be automatically rebalanced over time
5. Real Estate Crowdfunding
What Is Real Estate Crowdfunding?
Real estate crowdfunding allows you to invest in real estate properties with as little as $500 or $1,000. Platforms like Fundrise and RealtyMogul let you pool your money with other investors to purchase real estate projects.
How This Helps Small Investors
Real estate is one of the best ways to build wealth, but it often requires large amounts of capital. With real estate crowdfunding, you can get started with small amounts of money and invest in lucrative real estate opportunities without owning a whole property.
How to Start
Choose a real estate crowdfunding platform like Fundrise or RealtyMogul
Sign up and choose a portfolio or project to invest in
Start with a small amount, typically around $500
Watch your investment grow as the property generates income or appreciates in value
6. Peer-to-Peer Lending
What Is Peer-to-Peer Lending?
Peer-to-peer lending platforms such as LendingClub or Prosper allow you to lend money directly to individuals or businesses in exchange for interest payments. This type of investment allows you to get a return on your money without the volatility of the stock market.
How This Helps Small Investors
P2P lending is an excellent way to invest with little money and earn returns over time. You can start with as little as $25 or $50. While there is some risk involved, the returns can be higher than what you’d earn from traditional savings accounts or bonds.
How to Start
Sign up for a P2P lending platform like LendingClub or Prosper
Browse available loan listings and choose ones that fit your risk profile
Start with a small loan, such as $25 and diversify your investments
Earn monthly payments as borrowers pay back their loans
7. Investing in Nigeria: How to Start with Little Money
What Is the Investment Landscape in Nigeria?
If you’re based in Nigeria and wondering how to invest with little money, there are also plenty of opportunities available locally. You can invest in stocks, mutual funds, and even real estate crowdfunding through Nigerian platforms like Cowrywise or Chaka.
How This Helps Small Investors
In Nigeria, the rise of mobile investing platforms has made it easier for anyone to get started, even with small amounts. Whether you’re interested in stocks or digital assets, you can make small, regular contributions and watch your investments grow over time.
How to Start
Choose an investment platform like Cowrywise, Chaka, or Risevest
Start with as little as ₦1,000 to ₦5,000
Pick your investment stocks, bonds, or digital assets
Keep adding small amounts over time to grow your portfolio
How Much Money Should You Start With?
The amount of money you need to start investing can vary, but the best part is you don’t need a lot to begin. Many platforms allow you to invest with as little as $5, ₦1,000, or the spare change from your purchases. Whether you’re interested in stocks, ETFs, real estate, or even peer-to-peer lending, there’s an option for every budget.
The key to investing small amounts is consistency. Start with what you can afford and increase your investments as you get more comfortable. Over time, small investments can turn into big returns, all thanks to the power of compounding.
