Most people think investing is something you do when you’ve “made it” and have thousands in the bank with no debt. The truth? You can start investing with $5 and less than the cost of a drive-thru lunch. Starting small can actually be one of the smartest moves you make.
If you’ve got $5 and a willingness to take the first step, you can start investing today. Let’s talk about why starting small works, how to actually do it, and how to turn your first $5 into a habit that builds real wealth over time.
Why Starting Small Works
Compounding doesn’t care where you start. It only cares when you start.
If you start investing with $5 a week for 10 years, you’ll have more than the person who waits five years and then dumps in $1,000 because your money has been working for you the whole time.
The first stage of investing isn’t about getting rich fast. It’s about building the habit. Once you’re in the habit, increasing the amount is easy.
Your Low-Cost Investment Options
When you only have a few bucks to spare, traditional investing methods like buying whole shares of stock can feel out of reach. Luckily, you have options:
- Micro-investing apps like Acorns or Stash that let you invest small amounts automatically
- Fractional shares through brokerages like Fidelity, Schwab, or Robinhood
- Employer retirement plans, even $5 or $10 a week in a 401(k) is worth it if your company matches contributions. (Honesty if you have a 401(k) with company matching, you should be working to max this out before anything else)
Step-by-Step: How to Start Investing with $5 Using Acorns
If you want something super simple that runs in the background, Acorns is the easiest place to start. Here’s how:
- Download the Acorns app
- Link your bank account (takes about a minute)
- Pick your portfolio. They’ll help you choose based on your goals and risk tolerance
- Turn on Round-Ups or set a recurring deposit, even $5 a week adds up fast
💡 This is the same app I used to get started when I had almost nothing to invest. Apps like Acorns make it possible to start investing with $5 and keep it automatic.
👉 Sign up for Acorns here and you’ll get a welcome bonus after your first investment. If it says “David invited you” when you sign up, you’re in the right place.
Growing Beyond Your First $5
Once you’ve started, the next step is to increase what you put in over time:
- Add an extra $5 a week every few months
- Reinvest any gains or dividends
- Stay consistent even when the market is bumpy. Selling in a panic is the fastest way to kill your growth
Common Beginner Mistakes to Avoid
- Waiting for the “perfect” time. It doesn’t exist
- Overcomplicating it early. Simple is best when you’re new
- Ignoring fees. Even small fees can eat away at gains over decades
Bottom Line
Starting with $5 might not make you rich overnight, but it’s the habit that matters. That first small deposit is proof you’re taking your financial future seriously.
So open that account, start investing with $5, and let your money start working for you.
👉 Get started with Acorns now. You’ll get a welcome bonus after your first investment, and if it says “David invited you” you’re good to go. Please reach out to me and I’d be glad to walk you through it or discuss it with you.