What Is Micro-Investing?
Even spare change can gradually grow into a significant sum if saved regularly.
If you've ever collected a horde of spare coins in a jar -- saving them for years before placing them in rolls and depositing them at the bank -- you've had an introduction to the principle of micro-investing. Micro-investing refers to the process of regularly investing small amounts of money to build up a stake over time while participating in financial markets.
As you might have learned from your heavy coin jar, even spare change can gradually grow into a significant sum if saved regularly. And for many of us, doing without these funds wouldn't impact our lifestyle.
If you can't dedicate much money toward investments, it might take years to acquire a large enough stake to reach a mutual fund's minimum investment or make investing in individual stocks or bonds practical. Alternatively, micro-investing allows you to invest regularly but with less money upfront, often automatically.
