The Biggest Investing Myth: You Need a Lot of Money
The single biggest barrier to investing isn't knowledge — it's the misconception that you need thousands of dollars to start. Fractional shares have completely changed this. You can now buy $10 worth of Apple stock, $25 of a total market index fund, or $50 of a diversified ETF portfolio. The best time to start was yesterday. The second-best time is today.
For absolute beginners, we recommend a three-fund portfolio: a total US stock market fund, a total international stock fund, and a bond fund. This simple combination gives you diversified exposure to the entire global economy. Adjust the ratios based on your age and risk tolerance.
- Step 1: Open a brokerage account (Fidelity or Schwab — both free)
- Step 2: Set up automatic deposits ($25-100/month)
- Step 3: Buy one or two low-cost index funds
- Step 4: Don't look at it daily — check quarterly
- Step 5: Increase contributions when your income grows
Time in the market beats timing the market. A $100/month investment at age 25 is worth more than $500/month starting at 40.
— Warren Buffett
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