Not everyone can afford to part with hundreds or thousands of dollars a month to fund a brokerage account or retirement plan. Many people live on a tight budget with little wiggle room outside of their essential monthly expenses. If you’re dealing with limited investment funds, worry not — you can still do very well for yourself in the stock market. Here are a few things you may want to do to put your money to good use.
It used to be the case that if a specific company was out of reach because its share price was too high, you’d have to find a different investment. Nowadays, many brokerages allow you to buy fractional shares, which open the door to more opportunity.
As the name implies, fractional shares let you buy a piece of a share of stock. As of this writing, Amazon (NASDAQ: AMZN) is trading at about $3,182 a share. If you only have $1,000 to invest, you can’t buy a whole share of Amazon. However, you can buy a portion of a share and then capitalize on it the same way you would if you owned a whole share.