Do you want to start investing but don’t have a lot of money to spare? Micro-investing could be the perfect solution for you. Micro-investing involves putting small sums of money, such as your spare change, into investments. Various apps can help you do this, making it easier than ever to get started with minimal funds. Here’s everything you need to know about micro-investing and how to begin today.
Why micro-invest?
Micro-investing is an excellent option for people who don’t have a large sum of money to invest upfront. Here’s why it’s worth considering:
- Start Small, Grow Big: Even small contributions add up over time thanks to compound interest.
- Develop a Saving Habit: Investing small amounts regularly makes investing a routine part of your finances.
- Accessible to Everyone: You don’t need thousands of dollars to begin—just a few spare dollars.
- Automated & Hands-Free: Many apps automate investing, making it easy to set up and forget.
- Empowers Women: Women often face unique financial challenges, including pay gaps and career breaks for caregiving. Micro-investing provides an easy way to start building wealth without a large upfront commitment.
Interested in maximizing your savings? Check out 10 Ways to Cut Expenses for simple strategies to free up extra cash for investing!
10 Reasons to Start Micro-Investing (Even If You’re on a Tight Budget)
If you’ve ever felt like investing is out of reach because you don’t have a lot of extra cash, micro-investing might be exactly what you need. Here’s why starting small can make a big difference in your financial future:
- You Don’t Need Thousands to Start – Many platforms let you begin with as little as $1, so there’s no big financial commitment.
- Put Your Spare Change to Work – Round-up apps invest your extra cents without you even noticing.
- No Investing Experience? No Problem! – Automated platforms take care of the heavy lifting, making it beginner-friendly.
- Turn Investing into a Habit – Regularly investing small amounts helps you build a strong financial routine.
- Watch Compound Interest Work Its Magic – Even tiny investments can grow significantly over time.
- Fits Any Budget – Whether you’re paying off debt, saving for a home, or just getting started, micro-investing works at any income level.
- Smooths Out Market Ups and Downs – Investing small amounts consistently helps balance out market fluctuations.
- Build Confidence Without Big Risks – Micro-investing lets you dip your toes in without worrying about major losses.
- Access Smart, Diversified Portfolios – Many platforms give you exposure to a mix of stocks and bonds without the stress of picking investments yourself.
- An Easy Way for Women to Build Wealth – Women face unique financial hurdles, from the pay gap to caregiving breaks. Micro-investing creates an accessible path to long-term financial security.
Who should micro-invest?
Micro-investing is ideal for:
- Beginners looking to ease into investing without a large financial commitment.
- Anyone with a tight budget who still wants to start building wealth.
- Women looking to take control of their financial future, especially those balancing family and career responsibilities.
- Those who want to take advantage of automated investing.
Even if you can only spare a few dollars, starting early allows your investments to grow over time. If you’re looking for a structured way to manage your finances while investing, take a look at How to Use Envelope Budgeting to ensure your money is working efficiently for you.
When should you micro-invest?
The best time to start micro-investing is now! Investing early, even small investments today can grow into financial security tomorrow. Even during economic downturns, continuing to invest can help you buy assets at lower prices, positioning you for future growth.
Best Micro-Investing Apps to Get Started
1. Moka
Moka is a micro-investing app that rounds up your transactions to the nearest dollar and invests the difference for you. The app connects to your bank account and withdraws money weekly to invest in various accounts such as TFSAs and RRSPs.
Why choose Moka?
- Automated round-ups make investing effortless.
- Offers investment options within registered accounts.
- Helps build savings without requiring large upfront investments.
My Experience with Moka:
I personally started my investing journey with Moka, and it helped me get comfortable with reading investment reports, understanding my risk profile, and making financial decisions. While you don’t directly manage your investments, you learn how investing platforms work and gain experience with market fluctuations. The small investment amounts also made it easier to stay consistent. I never felt like I was missing money from my budget, but over time, I saw my savings grow.
2. Wealthsimple
Wealthsimple has a robo-advisor that allows you to start investing with as little as $1. It offers diversified portfolios based on your risk tolerance. However, unlike Moka, Wealthsimple also provides Wealthsimple Trade, which allows for self-directed investing without commission fees.
Why choose Wealthsimple Invest?
- No minimum investment amount.
- Provides professionally managed, diversified portfolios.
- Offers socially responsible investment options.
- Allows for self-directed investing, where you choose your own stocks, ETFs, and other assets.
- Includes features that cater to long-term financial planning, ideal for women balancing multiple financial goals.
My Experience with Wealthsimple:
While I didn’t use the robo-advisor service, I used Wealthsimple to start learning about self-directed investing. It gave me hands-on experience choosing my investments without requiring a large amount of money upfront, just enough to buy one share of whatever I wanted. Plus, the commission-free trading made it easy to experiment without losing money to fees. Wealthsimple helped me gain confidence in making investment decisions, which I wouldn’t have had if I had only used automated platforms like Moka.
Want to take your investing to the next level? Read Index Funds: A Beginner’s Guide to learn how they can help you build a strong portfolio.
3. Acorns (For U.S. Investors)
Acorns functions similarly to Moka, rounding up spare change and investing it into diversified portfolios. It also offers retirement accounts and educational tools.
Why choose Acorns?
- Easy for beginners with automated investing.
- Offers different account types, including IRAs (for U.S. users).
- Provides cashback rewards that can be invested.
How Acorns Inspired My Micro-Investing Journey:
Since Acorns is a U.S.-based platform, I haven’t personally used it. However, learning about Acorns was what first introduced me to the concept of micro-investing. I was intrigued by the idea of automatically investing small amounts of money, and through my research, I found Moka, which offered a similar service in Canada. This discovery sparked my interest in investing and ultimately led me to explore other platforms like Wealthsimple for self-directed investing.
Banks Are Lowering Investment Minimums
If you prefer to invest through a traditional financial institution rather than an app, many banks now offer low minimum investment options. For example, BMO allows you to start investing with as little as $50 per month. This can be a great alternative for those who want the security of a bank while still taking advantage of micro-investing.
Things to Consider Before Micro-Investing
Long-Term Growth: Micro-investing is a great start, but increasing your investment contributions over time will maximize your results.
Fees: Some apps charge monthly fees that can add up over time. Ensure the fees don’t outweigh your investment growth.
Investment Risk: While micro-investing helps reduce risk by spreading investments over time, returns are never guaranteed.
Conclusion
Micro-investing is an excellent way to start building wealth with small amounts of money. Whether you use Moka, Wealthsimple, or Acorns, the key is to start now and invest consistently. Over time, these small investments can grow into a significant financial cushion.
Looking for more ways to invest? Check out TFSA vs. RRSP: Which Should You Choose? to learn about tax-advantaged investing options!
Happy investing!