You might think that having a small budget means that you can’t take part in investing, and that kind of makes sense. After all, you have to prioritize your spending more closely with a smaller budget, so things like investments should be put on the back burner, right?
The truth is that you can still make investing a priority item with a budget of any size by adjusting your investment strategy. While a larger budget certainly opens up more avenues for things like investing, having a smaller amount of money to work with doesn’t mean that you shouldn’t invest and grow the money you have.
If you’re wondering how you can turn a smaller budget into something for the future, below are some ideas:
Invest in Tax-Free Options
When you have a smaller budget, you want to make every penny count. This is why you’re encouraged to seek out tax-free investment opportunities. A health savings account (HSA) is an example of just such an opportunity. An HSA investment allows you to invest tax-free funds in an account that can be used for healthcare spending. To find HSA investment options, visit this website.
Invest in Electronically Traded Funds
Electronically traded funds (ETFs) are another investment opportunity for individuals with smaller budgets. An ETF typically comes with lower ongoing costs compared to large mutual funds, and ETFs serve as a passive method of investing.
To get started with ETFs, you’ll need a little bit of knowledge about the financial markets, so it pays to do your research. You should also consider working with a brokerage to discuss your goals and options based on your current investment strategy and your available investment capital.
Look at the Big Picture
Whether you choose to pursue an HSA investment, a low-cost ETF, or something else, you can always find ways to maximize your investment power with a budget of any size. Start small and be prepared to get rich slowly. By staying the course and looking at the big picture, you’ll be well on your way to financial freedom.
Read a similar article about HSA discount here at this page.
