How to Start an Investment Portfolio with Little Cash On-Hand


It has been a general rule of thumb for decades that you must have at least three to six months’ salary stashed away in order to begin investing, or to create an investment portfolio. In this day and age, that is not as true, and there’s a bit more wiggle room than there used to be. With a little financial guidance, you can easily begin an investment portfolio with just a small amount of cash on hand. Provided you invest wisely under the guidance of a strong financial advisor, it is a relatively easy thing to do.

Become Familiar with Investing

If this is your first time, it’s better to take things slow and completely read through everything put in front of you. A good thing to do when starting out is to create an investment plan, also known as an IPS (Investment Policy Statement). This written plan basically states your investment plan and intentions, and it will also determine the amount of return on your investment once all the numbers have been filled it. It’s also a good idea to peruse the U.S. Securities and Exchange Commission website at for more in-depth tips and tricks.

Start Small

For general investing, you could easily begin with an investment as low as $1,000 that only requires monthly contributions of $100 or so. If you are serious about investing, now it’s time to look at the budget. If you can cut out luxury expenditures, do so. This money can also be put away in a separate savings account to add to your investment portfolio later on. You can also easily link checking and savings accounts to automatically deposit money into savings.

Opt for an ETF

An ETF stands for Exchange-traded Funds, and an investor can begin this with as little as $3,000 as an investment. Returns are ample on these funds and fees are low, but these much be purchased through a brokerage, which does cut your return. Of course, a bigger investment in an ETF provides a bigger return. If you’re able, now may be the time to secure a personal loan if you’re sure of your investment. Click to investigate how you can easily secure a personal loan from a reputable, well-known company.

Choose Actively Managed Funds

If you’re beginning your investment through an actual stockbroker, you ideally can invest as little or as much as you want. You truthfully could start an investment with an incredibly small amount, such as $250. Some brokerage firms do require an investment of a $500 minimum, but many will accept less. This does put control of your investment portfolio slightly in someone else’s hands, so ensure that you choose a brokerage firm that you trust, in addition to the stockbroker. Keep in mind that there is always an annual fee when you are using a brokerage firm, so try to choose a brokerage firm that charges a low annual fee. Returns on the right investment with this method can be fairly lucrative.