Achieving Financial Independence: Begin Investing with Only $25 – Investing 101

by | Jul 19, 2023 | Fidelity IRA | 35 comments




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Books that have helped us on our Financial Independence Journey
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The Bogleheads’ Guide to Investing:
The Intelligent Investor:
A Random Walk Down Wall Street:
The Book on Rental Property Investing:
Building Wealth One House at a Time:
Rich Dad Poor Dad:
The Total Money Makeover:
The $100 Startup:
Freakonomics:

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Our Rich Journey – Investing 101 for Financial Independence | Start With As Little as $25: Ever feel like you want to get started investing, but you feel like you don’t have enough money or you don’t know what to invest in (or even which account you should be investing in)? Then, this video is for you! In this video, we discuss how you can get started investing in the stock market with as little as $25 – even with $1 in many cases! We talk about the accounts that you should be considering and also the types of investments that you can also invest in. We hope this video inspires you to begin investing . . . even if it’s with a small amount of money each month!

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5 Reasons to BUY NOW | REITs (Real Estate Investment Trusts):

ETF vs. Index Funds | Our Investments for Financial Independence (FIRE Investing):

How We Became Millionaires with Index Funds | Vanguard, Schwab, & Fidelity:

How to Open a Stock Account in Less Than Ten Minutes | Start Investing Today:

How to Invest In Bonds | OUR TOP PICKS & Our Strategy for Investing for Financial Independence:

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We are not financial advisors. Our videos are for educational purposes only and merely cite our own personal opinions. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary. Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won’t experience any loss when investing. Always remember to make smart decisions and do your own research!

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Investing 101 for Financial Independence: Start With As Little as $25

When it comes to achieving financial independence, one of the most effective strategies is investing. By putting your money to work in the right avenues, you can grow your wealth over time and reach a point where your investments can provide a steady income stream. Many people believe that investing requires a large sum of money, but the reality is that you can begin your investing journey with as little as $25. Here’s a guide to investing 101 for financial independence, even if you’re starting small.

1. Start Early and Stay Consistent: The earlier you begin investing, the more time your money has to grow through compounding. Even if you can only contribute a small amount initially, it’s crucial to remain consistent by investing regularly. Consistency will not only help you build a habit but also allow you to take advantage of positive market trends over time.

2. Understand Your Risk Appetite: Before investing, determine your risk appetite. Risk tolerance varies from person to person, and it’s important to choose investments that align with your comfort level. Generally, riskier investments have the potential for higher returns, but they also come with higher volatility. Understanding your risk tolerance will help you make informed investment decisions.

3. Diversify Your Portfolio: Diversification is a key principle in investing. By spreading your investments across different asset classes (such as stocks, bonds, and real estate) and geographical regions, you can reduce the impact of market fluctuations. Diversification helps protect your investments and ensures you are not overly exposed to any single investment.

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4. Invest in Low-Cost Index Funds: For beginner investors with limited capital, low-cost index funds are an excellent option. These funds aim to replicate the performance of a specific market index, such as the S&P 500. Since they don’t require active management, they have lower fees compared to actively managed funds. Additionally, they provide broad exposure to the stock market, allowing you to participate in its long-term growth.

5. Take Advantage of Micro-Investing Apps: Thanks to technology, there are now micro-investing apps that allow you to start investing with as little as $25. These platforms make investing accessible and affordable, breaking down barriers for those who don’t have large sums of money to invest. These apps often let you invest in fractional shares, which means you can buy a portion of a stock or ETF with your small investment amount.

6. Educate Yourself: Investing can be complex, so it’s crucial to educate yourself about the various investment options available. Read books, follow reputable financial blogs, and consider taking courses to increase your understanding. The more knowledge you acquire, the better equipped you’ll be to make informed investment decisions.

7. Have a Long-Term Perspective: Investing is not a get-rich-quick scheme. It requires patience and a long-term perspective. Avoid making impulsive decisions based on short-term market fluctuations. Instead, focus on your long-term financial goals and stay committed to your investment strategy even during turbulent times.

In conclusion, investing can be a powerful tool for achieving financial independence. You don’t need a large sum of money to get started; with as little as $25, you can begin your investment journey. By staying consistent, diversifying your portfolio, and educating yourself, you increase your potential for long-term success. So why wait? Start investing today and take a step towards securing your financial future.

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35 Comments

  1. Easy Rawlins

    You guys inspire me

  2. MartinsBash

    i'm from nigeria can i also invest through fidelity and others

  3. Lamont Taylor

    I invest about $1,400 a month in my 401k but the market been down for at least the last 6 months

  4. Joyce Wall

    Wonderful advice. Thank you so very much!

  5. Yolanda Beckon

    I have a question: If I can max out my Roth IRA in the first month January of 2023? What to do next?

  6. Super Man

    The Queen City!

  7. Camille

    WHAT is the equivalent of these in canada?

  8. Emma Ducay

    Hi guys,
    I really love your channel. I’m learning a lot but not quite enough for me to start doing my own investment. I’m 54 year old woman with a dream of retiring in 5 years. I have some IRA acct that I just transferred from my previous employer. But I don’t have know how I buy my own investment. I hope you you’ll be able to help me fulfill my dream! Please help!!

  9. Joseph R Koch

    Which company do you recommend to start an index with for a beginner. And can that company do fractional index with reets?

  10. John L

    I just started to invest in ROTH IRA and putted everything into TDF (FIHFX) Fidelity Freedom Index 2035 Fund. You think this is a right choice? I have no knowledge of investing whatsoever. Thanks

  11. Balaraj Menon

    Thank you, thank you, thank you! I've been trying to get my son interested in investing, and your videos seem to be helping :)!

  12. clipMonks

    Based in Nigeria -Africa.. what route can I use to begin….

  13. Robin Taylor

    I am interested in using my tax refunds for buying paper I-Bonds. Their return rate is over 9% right now. My mom gave me a paper bond for christmas once and I thought it was so cool. I'd love to have some paper bonds to give my kids one day.

  14. Robin Taylor

    I max out my Roth IRA and HSA every year but also started adding more to my regular brokerage account lately so I can start saving for the down payment on a house (and get a better return on my money while saving). Thanks for sharing these videos!

  15. Gina Caceres

    Do you have a recommendations on how to diversify you Roth IRA?

  16. karol kinney

    I am signing up for your program and looking forward to learning but my question to you is; Do you address the needs of us older people? I have recently come into money, have already retired and am looking for education that is relevant to now….specific to this older age range. I am curious as to strategies that might be more relevant to me. Thank you for the opportunity to learn!

  17. Maxine Nora Jennings

    Thank you thank you thank you y'all are good at what you do… Yeah pacifically pacifically tell you what to do and what not to do and you explain it very well… I thank you so much for helping me understand exactly what you said

  18. Trendy Tips

    Can we start trading in Lisbon?

  19. Jenny Jover

    Thank you for sharing your knowledge

  20. Albertino Gomes

    Thank you so much for sharing this great information. I have a ROTH IRA but I want to start on a Total Stock Market Index Fund. Where is a good place to start? Also, my wife and I have been following your videos on “How to Move To Portugal” and liked all of them. Our plan is to move there next year with our sons when I retire from the military. We fell in love with Portugal while stationed at the US EMB Lisbon (2008-2011). Again, thank you and Happy Holidays.

  21. Derrick Allen

    Informative and necessary. The information is timely and helpful.

  22. Thomas Wilson

    Tommy. You for the info. Question, is the 3000.00 for vtsax for the mutual index funds, the broker , approximately how many shares will be given for that money? Thanks Tommy.

  23. Zhila Hooshangi

    You always say you quit your federal job! I was wondering how much you were making and what were your benefits! That’s the most important factor to start!

  24. Cya Jace

    You guys are the best. Thanks you guys. Love your energy.

  25. Tustar

    Thank you for the enlightenment. Is Robinhood not good investment?

  26. nor

    great content.

  27. Angi S

    What if I have school debt. Which should I do first? Pay off debt to save more in the future? Or pay off debt and invest at the same time? Thanks!

  28. Jujubees711

    Best line…
    "In the time you can open an Netflix account, you could open up a brokrage account."

  29. Jim Sheets Turn on the Bern 2020

    I recently found your Chanel became debt free recently . I am retired not much in savings I drive for Lyft which is pretty lucrative I was thinking about putting 25.00 a day in Acorns in aggressive account to catch up what are your thoughts thank you Jim Sheets

  30. livetodance30

    This is really good information. The only issue I have is that there is no mention of "tax-free growth" accounts. It's awesome that Amon and Christina were able to reach their goals without using this option; but with their discipline, I dare say they would have achieved their goals even quicker by taking advantage of tax-free accounts. With brokerage accounts and tax-deferred accounts you're either paying tax now (brokerage) or later at an unknown rate (401Ks, etc.). They did mention ROTH IRAs which fall into the category of tax-free growth; however, like they mention, there are limits on how much you can contribute to a ROTH and/or there are income limits on even participating in a ROTH. I wish more people understood the availability of tax-free account growth which address all these limitations. More people should be taking advantage of this option.

  31. Victoria Oluwasesan

    Wow this is my first time of watching your video, but unfortunately I am here in Nigeria and don't know how to do this.

  32. Bridgette Willis

    I'm thinking Fidelity should have been my starting point to buying fractional shares at $25. I opened a Vanguard Roth IRA. Didn't realize I would need $3000 to get started with index. Bummer

  33. Linda Le

    I'm trying to decide where I should put my REITs? I saw your tax-efficient video where you mentioned it should should be in the tax-advantaged accounts like the 401K & IRAs. But here you mentioned you're using dividends as income in early retirement. So do you place it in a taxable account? Thanks! You guys are amazing!

  34. Happiness Your girl

    Now I must just find a day I won’t be disturb to watch your videos. I like fact that you guys are upfront other prize for the course unlike youtubers making you listen won’t even tell you u till last minute.omly $1800 $1000
    Not everyone has that
    Money lying around. But I am working on having it thou

  35. Happiness Your girl

    It’s so interesting. I just wish my brain was fast to understand most things you talking about. I am
    Am part of Vanguard. For me to get proper grip. I definitely will enroll for your course. I been listening to the two from
    Portugal

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