I decided to prepare a kind of guide on how to act if you have different financial opportunities to save / invest. Of course, an important component is the ability to save or accumulate. Here in this article we will look at what to do with 100 euros per month?
Let's say you get paid. According to your budget or feel, you will first need to set aside / “spend” 100 euros. You have many different options for how to do this, but the main thing is that this amount should be of practical use. If you are engaged in investments, then I promise you practical benefits.
Let's move on to the goal. Let's formulate it like this: “I have the opportunity to invest 100 euros a month. What should I do?"
Here you have several options at once. It all depends on how risk-averse you are. Let's look at example number 1 if you feel ready to spice up your daily life.
1. You are ready to take risks, but at the same time you are ready to do it consciously and systematically.
- Open a brokerage account. It is important to open one that offers minimum commissions. For my part, I can advise Revolut and Interactive Brokers. You definitely won’t go wrong with them, and if you want to learn more about various brokerage sites, you can read about them here or listen to our detailed webinar here (akhtung, paid webinar).
– We systematically invest in blue chip stocks. Here it depends on your preferences. Below is a screen recording from my Revolut brokerage account.
Pay attention to Apple, Amazon, Facebook, Netflix, Google (Alphabet). I would also single out Intel, Microsoft, Visa, Mastercard, Bank of America.
– We buy in stages, take our time and distribute even a small amount evenly among all blue chip stocks. Of course, it will be difficult to invest on Interactive Brokers for 100 euros, since the shares of some companies, for example, Amazon are worth $3 (at the time of writing on 649/26/07), but in Revolut you can buy shares in parts, which is very convenient for us .
- Everybody. Every month you repeat this ritual and for good do it for many more years 🙂 Be sure to follow the companies from the list of blue chips. It may happen that someone is thrown out of there, so keep your nose to the wind anyway.
2. You want to keep risk under more control, but are willing to continue to invest in stages.
– ETFs = Index Funds would be a great solution for you. You will have to choose the right one for yourself. For example, you can choose a fund that contains the largest producers of digital and e-sport games - VanEck Vectors Video Gaming and eSports UCITS ETF. You can buy it at LHV bank or at Interactive Brokers. Or choose a fund that tracks companies that produce electric cars - the iShares Electric Vehicles and Driving Technology UCITS ETF.
In general, it might be a good idea to invest in the S&P500 index - the iShares Core S&P 500 UCITS ETF.
– The principle of investing is the same. Gradually every month we transfer 100 euros to several or to one of the funds.
The leading
The first thing you need to do is take care of your personal finances. Start budgeting, this will help you my guide and the file is here. Pay off small loans or loans with a high interest rate and then move on to planned investment.
Make more and more of a gap between your income and expenses. The more money you save, the more you will be able to reinvest and the faster you will reach your financial freedom goal.
I advocate long-term investment. The ones you'll be willing to do for a few years. Take your time, you always have time to find the right moment. You can read more about systematic micro-investing in cryptocurrency here.
Good luck in the financial markets!