Updated: Oct 6, 2021
The top 1% have enough money to pay the extortionate fees involved with using fund managers.
They can pay the commission based financial institutions.
They don’t have to do a thing.
They’re the most casual investors you can find.
We’re here because we do not have that luxury.
We’re here because we understand that even a small contribution each month adds up.
With compounding interest your small but consistent savings can grow exponentially over time.
So, you’re on your own.
You’re unable to pay someone to manage your $50 because, well, that would be uneconomical.
What’s left then?
Well, in terms of accessibility, an online platform is worth looking at.
With the minimum deposit set at $50 it's accessible to most of us.
But we’re looking at something specific today.
A superpower for the budget investor...
Something that rivals the fund managers the 1% use.
Something smart, clever and revolutionary...
But the basics first.
The key thing is to be consistent with your contributions, after all with compounding interest $50 a month can be worth:
This above example is just $50 a month for 20 years with a mere 10% return.
You can see that the total interest (orange) only grows steeper the longer you leave it.
I’d recommend playing with this compounding interest calculator to really understand the opportunity of investing a little at a time.
So we can see, investing anything, right now, is worth it.
But what's that superpower I was talking about?
Copy-trading does exactly what it says on the tin and it’s an invaluable resource for the budget investor.
☑️ It saves you hours of research on each and every position (Sell/Buy).
☑️ It saves you hours of research on each market.
☑️ It saves you hours of research on each industry.
These platforms work with experienced investors to provide:
Built on different strategies.
In different markets.
With varied levels of risk.
You’re in a unique position where you can have experts manage your money for you.
We’ve compiled a list of our favourites which you can grab here.
It’s worth doing your own research too as half the fun of investing is putting your money into things you truly believe in.
When you’re investing on a budget you should also consider the helpful risk factor a platform awards to the trader.
The lower the score the more risk averse a trader is.
When starting out, slow and steady is a great mantra.
You’re going to have an opportunity in the future to diversify the risk in your portfolio.
Let’s focus on building to that at this point.
In order to invest into one of our recommended copy-trades you need $300. This is because often these portfolios have multiple trades to split your investment into.
$300 is a great figure to jumpstart your portfolio and gives you the opportunity to effectively have an expert manage your investments straight away.
Remember BE consistent.
You’re going the right way as long as you keep contributing to your total.
Rome wasn’t built in a day and neither is your future…
We delve deeper into this subject in our video course available here.
Take a look at our FREE content offer here, including a helpful starters guide to signing up to Etoro and a look into some of our favourite popular traders on the platform.