Investing for Beginners with Little Money

Investing for beginners with little money…

Folks, I’ve been talking about this for years. Mostly because my friends and family know I work in finance, and they’re always hitting me up for investment tips. 

To be sure, I’m always happy to help. In fact, just being asked to address the topic of investing for beginners with little money, brings me joy.  Particularly when I’m able to turn an amateur investor with limited funds into a successful investor with a six-figure, or even seven-figure portfolio. 

Of course, my investment strategy for beginners does require a certain level of patience and humility. Because my investment strategy for beginners starts with something that a lot of beginner investors don’t expect.

Investing for beginners with little money starts with some heavy lifting

It’s not very exciting, but it’s necessary if you want to build wealth.

I’m talking about eliminating any debt that carries with it an interest rate higher than what you are likely to earn in the market. 

Typically, the average stock market return is between 7% and 10% per year.  We tend to do better here at Energy & Capital, but to stay conservative, we’ll use the S&P 500 index as our gauge.  And that’s where you’re looking at between 7% and 10% per year. 

Now the average annual percentage rate (APR) for most credit cards in the U.S. is between 15.5% and 22.8%.  So unless you can guarantee a stock market return exceeding those APRs, your first order of business must be to eliminate that debt that is carrying an interest rate higher than what you can earn in the market. 

It’s also important to consider your purchasing decisions.

It’s pretty simple really.  The more cash you have to invest, the more money you’ll ultimately make.  

So when you consider buying something, ask yourself one simple question…

Is this item more important than the value of my portfolio?

If it isn’t, then take whatever you were going to spend on that item and put it to work for you. I did this very thing when I was just starting out, and over time, not only did I save thousands of dollars a year by being more conscious of my purchasing decisions, but I grew that thousands of dollars into tens of thousands of dollars. 

When it comes to Investing for beginners with little money, this is a great way to become a beginner investor with a lot of money.   And that really represents the foundation of wealth creation and protection. 

You know, Charlie Munger, the former vice chairman of Warren Buffet’s Berkshire Hathaway, once told investors that you’ve got to get to $100,000 to really start making money. He said…

The first $100,000 is a bitch, but you gotta do it.  I don’t care what you have to do.  If it means cutting back on non-essentials and prioritizing savings, find a way to reach $100,000.

Considering Munger boasted a net worth of $2.6 billion by the time he died, I’d say his theory is sound.  And really, it’s all about compounding returns.  Here’s what happens over 30 years with just an 8 percent return…

Now while you probably won’t amass a $2.6 billion fortune the way Munger did, you can still create significant wealth, even if you don’t have a lot of money to start out with.  It’s really just about patience and discipline.  If you can master that, you’ll be set for life. 

Of course, you also have to know where to invest your money.  So if you are a beginner investor with little money, I strongly urge you to check out this private solar royalty program that has the potential to turn as little as $100 into $98,325.  

Here’s how it works…

There’s a company that builds and finances large-scale solar power projects all across the globe.  Some of the financing comes from individual investors like you, who invest as little as $100, then earn monthly income from the electricity those solar power projects produce for as long as 20 years. 

It’s actually easier than buying stocks, too, because you don’t need a broker.  You simply sign on to a dedicated platform, pick the project you want to invest in, and spend the next 15 to 20 years collecting your monthly income. 

This really is one of the best wealth creation mechanisms when it comes to investing for beginners with little money.  And to help you get started, I put together this short report which shows you exactly how you can start earning your private solar royalties right now.  

To a new way of life and a new generation of wealth…

Jeff Siegel

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Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.

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