Why Investing with Small Amounts of Money is More Powerful than You Think

There’s a real struggle between balancing our everyday bills and trying to invest. It makes you wonder if investing with small amounts of money really amounts to anything. In this video, we’ll uncover key steps on how you can make investing small amounts of money extremely powerful for your future, while also avoiding common mistakes.

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Personal Finance

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🌟 Key Insights:

📈 Understanding the Growth Mechanism:
Discover how $5 a day can turn into $1.6 million by the time you retire, thanks to the power of compounding growth.

🧠 The Psychology of Small Investments:
Learn how breaking down investments into small, manageable amounts can help you stay consistent and achieve long-term success.

📱 Using the Right Platform:
Find out why Webull is a great choice for small investments and how a Roth IRA can maximize your returns with tax-free growth.

📝 Creating a Turnkey Plan:
Step-by-step guidance on setting investment goals, choosing the right amount to invest, and automating your investments for effortless growth.

💡 Discussion Points:
🤔 How to make the most of small investments using the power of compound interest.
📊 The importance of having a clear investment plan and sticking to it.
🧠 The psychological benefits of starting small and scaling up as your finances allow.

🌟 Join me as we explore these strategies and share actionable tips to help you build wealth even with small investments.

📢 If you found this video helpful, share it with others, and don’t forget to subscribe for more insights on investing and personal finance.

Chapters of Today's video on How to Grow a Small Stock Account
0:00 - Introduction: Balancing Bills and Investing
0:06 - The Power of Investing Small Amounts
0:15 - Three Simple Steps for a Powerful Portfolio
0:26 - Harvard Study on Actionable Investment Plans
0:48 - Step 1: Understanding the Growth Mechanism
1:02 - Example: Investing $5 a Day from Age 18
1:43 - The Power of Compound Interest
2:12 - Not 18? Start Now!
2:28 - Step 2: The Psychology of Small Investments
2:36 - Tallying Monthly Expenses
2:56 - Consistency Over Intensity: Investing and Working Out
3:56 - Step 3: Using the Right Platform
4:33 - Choosing the Right Account: Roth IRA
5:08 - Creating a Turnkey Plan
5:26 - Setting Investment Goals
6:09 - Choosing the Right Amount to Invest
6:31 - Automating Your Investments
6:52 - The Rule of 72: Understanding Investment Doubling Time
8:03 - Scaling Up Your Investments
8:31 - The Importance of Starting Now
8:54 - Finding Ways to Invest More
9:23 - Conclusion: You Got This!

*Disclaimer: Bob is not a financial advisor. Please contact a professional financial advisor prior to making any decisions. Some of the links and other products that appear on this video are from companies in which Bob Sharpe earns an affiliate commission or referral bonus. Bob Sharpe is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.

[TheCookingDojo]

Ive always heard that rule. 7 years to double your money.

For those who need more convincing about how little things matter. Each week for about 6 months or so i was adding $5 a week into Cheveron, Exxon, and Sinclair. Now those three stocks pay about $10 a year each. Thats without dividend reinvestment.

[roseyfischer]

Absolutely! Even small investments can grow significantly over time, thanks to compound interest. The earlier you start, the more time your money has to grow.

[teresahunt]

I would encourage married women (and probably men too) to have a separate investment account from the joint finances. My husband died in 2020 and only when he was dying did I find out that he was leaving the majority of our wealth to his sons from his first marriage. It's very hard to argue with someone who is dying. His thinking was that I would remarry and he didn't want my next husband to enjoy "his" money. I'm 59 and started over with nothing 4 years ago. I'm still single, not dating and will never marry again. I was briefly in a relationship with a man who had started over twice already. He never planned to marry again either. To put it bluntly, I'm too old to be someone's never ending friend with benefits so I left the relationship. Always invest in yourself and for yourself.

[michiganman]

My daughter turns 18 in two months. We're going to get a credit card for gas only purchases and pay it in full every month. We're also going to open a Roth IRA and get her started to be better than most her peers/Americans. 💪

[seanmorrow]

Thank you your video has changed my whole mindset doing 100 every week in voo because of you

[lolgamernl]

im 17 rn going to start small at my 18th birthday thx for the vidoes they're useful

[Josh_The_Fabricator]

Thanks for your videos bob, I wish they talked about investing when I was a teenager but no one did !

[mjss]

Making it a habit is what made it important for me.

Started with only $25 per month into mutual funds. Then, every time I got a raise I increased that $25 by part of the raise.

Initially that grew pretty slow but the hockey stick of exponential growth catches on eventually and BOOM!

[supercruchynoodle]

V cool background Bob! I like the furniture rearrangement. The green shirt is fire too

[IOSARBX]

Bob Sharpe, cool video you deserve more subscribers

[jamescares]

I started 2 month ago and already have over 6k in my portfolio when I had planned on investing 500 a month. I have to stop!

[TheCemonthegreat]

Great video. Thanks for the motivation and the positive reinforcement to remain disciplined

[syeag]

Thank you for your videos. Great content as usual.

[wildfoodietours]

Slow and steady wins the race, here's to FIRE!

[focseek]

im 21 and watching this and im just starting

[Hilts]

I understand the theory of compound interest, but *what* do you invest in FOR compound interest?

[DannyNguyen-isxk]

For 15 years or maybe more, i invest 3$x 16 stockx 5day x 52 weeks x 15 years + Drip + 250% growth ( maybe) that all i need ❤❤❤❤

[carvengod]

If I die before I reach 60 year what will happen to my money in the roth ira will it just stay there or will it go to my family?

[jboogie]

Hey bob so I’m 20 I’m a little nervous as a beginner because I feel like I’m late into the game but I have $150 to put into the stock market and looking to throw $50 into CAVA (Mediterranean they are blowing up quick and I love eating there), and $50 into Apple (who doesn’t love tech) and I’m split between VOO and SOFI.

[egsjlwp]

My husband and I were fortunate enough to be able to pay off our mortgage early. We were both still working, and took the payment amount that we had been using to pay off our mortgage faster and we put it straight into investments. We were able to retire early because of almost 7 years of putting away what would have been our mortgage payment as well as maxing out our 401K/403B plans. Thankfully we were taught by both of our parents the value of living within our means. Thank you for your advice. I know it will help people. we are interested in investments that could set me up for retirement, I mean I've heard of people that netted hundreds of thousands during these crash, I listened to someone on a podcast who earned over $650K in less than a year, what's the strategy behind such returns?