How to Start Investing with Just $50

If you’ve ever thought, “I don’t have enough money to start investing,” let me stop you right there. I used to believe the same thing. I thought investing was only for people with thousands of dollars lying around. But the truth is—you can start investing with as little as $50. I know because that’s how I began my own journey.

In this post, I’ll walk you through how to invest with just $50, step by step, in a way that’s simple, real, and actually doable. I’ll share some of my personal lessons, mistakes, and tips. By the end, you’ll see that you don’t need to be rich to start investing—you need to start small and stay consistent.

Why $50 Is Enough to Begin

When I first looked at my finances, I thought, “What’s $50 going to do? It’s nothing.” But then I realized—it’s not about the amount, it’s about building the habit. Think of $50 as your starting point in the investing world. Over time, small amounts grow, especially if you’re consistent. This is called the magic of compounding.

For example, if you invested $50 a month into the stock market with an average 8% annual return, in 10 years you’d have nearly $9,000. In 20 years, that’s over $27,000. And that’s just from $50 a month. That’s the power of small but consistent action.

Step 1: Get Your Mindset Right

Investing with $50 is less about the money and more about creating a system. You’re training yourself to prioritize financial growth. This is the same mindset shift I talked about in Top 5 Mistakes I Made as a Beginner Freelancer. One of my biggest mistakes was waiting for the “perfect time.” Don’t make that mistake. Start now.

The key mindset tips:

• Don’t wait for big money—start small, learn, and grow.
• Be consistent—invest regularly, even if it’s just $50.
• Think long-term—real investing success comes with patience.

Step 2: Choose Where to Invest Your $50

Now the exciting part—where to put your money. Luckily, today’s world makes investing easier than ever. Even with $50, you’ve got real options:

1. Fractional Shares

You don’t need to buy a full share of Amazon or Tesla anymore. With fractional shares, you can own a “slice” of expensive stocks with just a few dollars. Apps like Robinhood, Fidelity, or Charles Schwab allow you to do this. Personally, my first $50 went into a fractional share of an ETF. It felt small, but it was a start.

2. Exchange-Traded Funds (ETFs)

ETFs are bundles of stocks that give you instant diversification. With $50, you can buy a fractional share of an ETF like the S and P 500. That means you own a piece of 500 companies in one move. This is one of the easiest ways to start investing as a beginner because you don’t need to pick individual winners.

3. High-Yield Savings or Robo-Advisors

If you’re scared of losing money at first, you could start with a high-yield savings account or a robo-advisor. Robo-advisors automatically invest your money based on your goals. It’s beginner-friendly and hands-off.

If you want to dig deeper into the basics of investing, check out this beginner-friendly guide on Investor.gov.

Step 3: Set Up Your First Investment

Here’s how I set up my first $50 investment—and you can do the same:

1. Pick a platform (like Robinhood, Fidelity, Vanguard, or a robo-advisor).
2. Deposit $50 (most apps let you link directly to your bank).
3. Choose your investment (fractional share or ETF).
4. Hit buy.

That’s it. You’ve officially joined the investor club. It may not feel like much at first, but trust me, it’s the small start that matters most.

Step 4: Keep Adding Regularly

One-time investing isn’t enough. The real secret is consistency. This is called dollar-cost averaging, where you invest the same amount regularly regardless of market ups and downs. Over time, this balances your cost and lowers risk.

Here’s a quick example. If you invest just $50 every month for 10 years at an 8% return, you’d have almost $9,000. If you keep going for 20 years, it grows to over $27,000. At 30 years, that’s over $68,000—all from a $50 monthly habit. That’s why consistency beats timing the market.

When I was freelancing, I sometimes made $100, sometimes $500. But I always tried to set aside at least $50 to invest. This is the same habit I shared in Freelancing 101: A Beginner’s Guide—consistency beats perfection.

Step 5: Diversify Slowly

With your first $50, maybe you start with one ETF. But over time, you can add more types of investments: bonds, real estate funds (REITs), or even crypto if you’re open to risk. The goal isn’t to gamble but to spread risk. A single $50 contribution won’t change your life, but hundreds of them spread across different assets just might.

As you grow, think about balancing investing with other financial priorities. I explained how I handle balance in Balancing Freelance Work and Personal Life. The same principle applies with money: don’t put everything in one basket.

Step 6: Overcoming Fear of Losing Money

Let’s be real—when you only have $50 to spare, the fear of losing it feels bigger. I was nervous too. But here’s what I learned: the market goes up and down, but historically it always trends upward. $50 in an S and P 500 ETF is safer than leaving it under your mattress, where inflation eats it up.

Start by asking yourself: “What’s the bigger risk—investing $50 and learning, or never starting and staying stuck?” For me, the regret of not starting was scarier than the thought of losing a few dollars. And once I saw my first $50 grow to $52, then $60, I was hooked.

Step 7: How to Find Your First $50 to Invest

Maybe you’re thinking, “I don’t even have $50 to spare.” I get it—I’ve been there. But here are a few ways I freed up my first investing money:

• Cut a small expense—for me, it was skipping two fast-food meals a month.
• Start a mini side hustle—I wrote small freelance gigs online, just like when I explained in How I Started My Blog for Less Than $100.
• Round-up apps—some apps invest your spare change automatically when you buy coffee or groceries.
• Sell something unused—I once sold an old phone case and put that $20 straight into my investment account.

You don’t need to earn more money to find $50—you just need to redirect it with intention.

Step 8: Use Side Hustles to Boost Investments

If you’re serious about growing, you can use side hustles to increase your investment contributions. For example, when I started my blog, I reinvested some of my online earnings into ETFs. Over time, those little side hustle paychecks became real investments.

Think about it: even if you made an extra $50 a week from freelancing, and you invested all of it, that’s over $2,600 a year. Small side hustles can accelerate your investment journey faster than you think.

Step 9: Keep Learning and Growing

Investing is a skill. The more you learn, the smarter your decisions become. I recommend checking out Investopedia’s beginner investing guide. It’s packed with simple explanations.

But don’t just learn—apply. Even if it’s just $50, put your knowledge into practice. Action is the best teacher in investing.

Final Thoughts

Here’s the truth: it’s not about how much you start with, it’s about starting. I began with $50, and while it didn’t make me rich overnight, it taught me the habit of investing. And that habit changed everything. Over time, I learned to diversify, stay consistent, and use my side hustles to grow my investments.

If you’re sitting there thinking $50 is too small, I promise you—it’s not. Your future self will thank you for starting today.

So go ahead, set aside that $50, and begin your investing journey. Who knows? In 10 years, you might look back and realize this was the best $50 you ever spent.

Disclaimer: This article is for education only and not financial advice. Do your own research and consider speaking to a qualified professional for personalized guidance.