Everyone’s heard that investing in the stock market can be a great way to grow your dinero over the long-term. But if you’re new to investing, it can be easy to feel overwhelmed. What's more, that feeling of overwhelm can quickly turn into a feeling of discouragement if you don’t have a lot of money to invest.
Many of us can feel a little shy when it comes to taking the steps towards investing in the stock market because we believe that investing is only for rich people, or at least for people richer than us. But that’s just not true anymore! No matter how much money you have and no matter how much you know (or don’t know) about investing, you can still grab the Wall Street bull by the horns and become an inversionista (boss babe investor). But if the idea of putting your hard-earned cash into the stock market still makes you shake in your botitas (boots), here are two not-so-scary ways you can still get in the investment game:
01 // Start small
While it can be true that the more money you invest, the more wealth you can potentially accrue over time- the same can happen in the inverse! The more money you invest, the more dinero you can lose. In general, it is not advisable to invest more money than you can afford to lose. That goes for any type of investment really. Luckily, we live in phenomenal times where technology has made it easier than ever to invest only as much as or as little as you are completely comfortable with.
02 // Invest in what you purchase most
Rather than buy stocks simply because they’re in the news, I prefer to invest in businesses whose products and services I personally purchase and enjoy. There are brands that I just can’t live without but instead of just buying from them, I also buy into them. Purchasing products, services or experiences from your favorite brands along with purchasing stock options in those companies is a powerful way to really transform the consumer game and make it work for you and your own family. Are you a Disney evangelist? Buy a share! Can’t live without Amazon Prime? Pick a stock option.
One of the easiest and not-so-intimidating ways you can start dipping your toes into the investment game is to try micro-investing apps. These apps let users start investing with as little as spare change! One app that I personally use is Acorns. If you'd like to open your own account while supporting Latina Money's Dinero blog, you can click on the Acorns image down below to use our unique code.
When you sign up for an Acorns account, you’ll answer a few questions about your investing profile. Based on your answers regarding your investing goals and time horizon, Acorns will decide how to invest your money. After you help Acorns determine your investing profile, you’ll link your debit and credit cards. Each time you use a linked card, Acorns will round the transaction up to the nearest dollar, and the difference is moved from your checking account. So, if you paid $2.25 for a coffee, Acorns will take $0.75 and place it in your Acorns account. It will then automatically invest it for you. These technology-based platforms aim to remove traditional barriers such as brokerage account minimums.
If you’ve ever wanted to invest in the stock market but were afraid to take the plunge, I hope that these two tips will make the process a little less intimidating. Remember that investments of any kinds are typically not get-rich-quick schemes but rather long-term ventures.
When it comes to investing, one of my favorite quotes is:
The best time to plant a tree was 20 years ago. The second best time is now.
— Chinese proverb
Investing our cash while we’re still young pups is most ideal but in reality, it is never too late to start. You can’t rewind time, but you can switch things up right this minute. Every little bit counts, in both money and in life. No matter where you are, take the leap and start investing right now. Your future self will thank you for it.
Here are some additional resources that might be useful on your investing journey:
Don't forget to also check out this great read by one of my dear friends, Osvaldo:
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Stay fabulous, fierce, and financially savvy bellas.