More millennials are investing in the stock market. An interesting technique is through Micro Investing with Betterment and other app based companies.
What Is Micro Investing?
More Gen Y-ers are figuring out that it is a good idea to start investing and, just like they do with so many other things, they are not letting themselves be constrained by the traditional options available to them – or even newer trends like making investments in startups. Between new electronic options for investing, penny stocks, and other, smaller investment options collectively known as micro investing, Millennials are learning how to get into the stock market. And they’re already starting to take advantage of these new avenues to invest their money and reap returns.
So, how is the generation with the largest amount of student debt and difficult future managing to invest so much? The answer involves approaching investment the way you build any good habit – starting small, doing it frequently, and building your way up. That is the essence of micro investing – replacing large startup capital with an “as you go” approach.
What Does Micro-Investing Work?
Micro investing allows would-be-investors with little starting capital to bypass the roadblocks that usually keep them out of the game – minimum investment levels, trading costs, market research, and really just not having a ton of money. Micro investing allows you to build wealth with only a few dollars at a time.
Investing has always had a high buy-in value, which you would think eliminates the generation that is doing everything they can to save whatever they have – but a handful of apps are changing that, and opening the doors for Millennials to try their hand at creating their own investment portfolios.
Take that extra coffee money and put it to use! Start by rounding up on your purchases. If it costs $5.50 just save the extra $.50 cents and put it into your savings. Once you have a few dollars saved you can let your money work for you. Start investing by microinvesting to get yourself stared.
Yes, you heard it right, there’s an app for that. Here are a few of the best micro investing apps to take you from rags to riches, one penny at a time.
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