How do I start investing with little money?

The idea that you need a pile of cash to start investing is outdated. Brokerage apps and new fund structures have essentially removed the minimums.

Fractional shares let you buy a piece of a stock or ETF instead of a full share. If Amazon costs $200 per share, you can still buy $20 worth. Most major brokerages — Fidelity, Schwab, Vanguard — now offer fractional trading on index funds and individual stocks.

Target-date index funds are the simplest option for someone starting with small money. Pick the fund closest to your expected retirement year. It automatically adjusts the mix of stocks and bonds as you get older. Many have no minimum at providers like Fidelity or Schwab.

Robo-advisors handle the decisions for a small fee (typically 0.25% of assets). You answer a few questions about your risk tolerance and timeline, and the software builds and rebalances a portfolio. Betterment and Wealthfront have no minimum to start.

The habit matters more than the amount. Investing $50 per week in a broad market index fund is worth roughly $190,000 after 30 years at 7% returns. The amount matters less than the consistency. Automate a small transfer every payday and increase it when you get raises.

One warning. Pay off high-interest debt before you start investing. Credit card interest at 22% will eat any investment return you can reasonably expect. The calculator says invest, but the math says pay off the debt first.