The Hows of Small Investments with Small Pocket Money

When you think of the word ‘investing’, chances are you picture the following: men and women wearing fancy business coat and attire, influential persons eating at expensive restaurants, or business people at a social gathering drinking exquisite wine while discussing technical business stuff. These imageries can distract you and make you think that investing is complicated and grand. Truthfully, investing is relatively simple.

Keep in mind that people who do not even have a thorough background or formal education about business and finance can become successful in investing. However, this certainly does not mean that you would spend your money mindlessly without thinking whether that investment is good or bad.


Good and bad investments


Investments are considered good if it manages to produce a profit that either surpasses the anticipated amount of return or if it provided more money than the investment’s actual value. On the other hand, investments are considered harmful if it does the opposite: you do not garner a profit, or manufactured less profit than what was intended.

For starters, ‘analysis paralysis’ is a common reason to deter someone from investing. While it is important to know what it is like to invest through reading kinds of stuff, attending seminars or listening to podcasts— why don’t you just dip your toe in the water, and actually do the thing once and for all?

Experience is the best teacher, and it is indisputably true when it comes to the field of investing.

Immerse yourself through doing, rather than be immobilized by the theoretical part of it.


Fear of Loss

This is one of the most common reason for someone not to invest—fear of loss. It is only natural to be afraid of something you don’t know. And for the aspiring investor, investing seems like sailing in the immense sea of the remote knowledge. An investment inevitably entails risks.

Risk in simple terms refers to the probability of financial loss while investing.

Good news! As an aspiring investor, you can minimize your investment risks while gaining the much-needed experience through engaging in small investment.

After spending some time ‘testing the waters’ and assimilating information through ‘knowing by doing’, your experiences would build up over time. Soon you’ll eventually get the practical input of what investing feels like. You can then scale your investment at your own pace.

You can begin to explore investing through the internet.  The apps below lets you spend with as little as $5 right at the comfort of your home.


Acorns is an app-based investment vehicle founded in 2012. With this app, you get to invest your spare change automatically. How? You need to link your credit card and to check account through this app, so that every time you have done a financial transaction through that credit card, a spare change could be round-off to its nearest dollar. That spare change shall stack up until it hit 5$. Acorns then will automatically invest your $5 for you.

Swell Investing

Through investing with this platform, you can gain profit while changing the world for the better. Swell investing tends to choose companies that have a beneficial effect for all of us. As of now, Swell Investing assists aspiring investors in these six critical social causes, namely:


  • Healthy Living
  • Disease Eradication
  • Zero Waste
  • Clean Water
  • Renewable Energy
  • Green Technology


You can help change the world for the better while gaining profit if you invest in Swell Investing with the minimum investment of $50.


You would generally need a considerable amount of money to invest in real estate, and usually, you’ll need pay ranging between $5,000 to $50,000. However, with Fundrise, you can invest in real estate for as low as $500.  Cash flow usually takes the form of interest payment or rent (property income). You’ll also gain a profit through quarterly dividend payments and potential appreciation of the value of your shares.

Author: Lila Stoner

Lila Stoner is an author, editor, and copywriter. Having 5+ years of experience of writing.