Comment on Is it worth investing if I can only contribute $50 a month?

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swordgeek@lemmy.ca ⁨2⁩ ⁨days⁩ ago

Regardless, my point was more to do with whether someone with only $50 to spare a month is truly in a position to invest in anything or whether they might be better off saving it for a rainy day or something like that.

True enough, but short-term or non-locked-in investments are available to most people.

If OP doesn’t have the starting funds to buy an investment vehicle of some sort, then they could put it into a zero-fee savings account and vigorously ignore it. This is, in fact, your rainy day fund.

Then when they have scrounged up the appropriate amount (likely $500 or $1k), they can buy a guaranteed investment certificate or the like, and get better interest rates while they continue to put money into their account.

When the term is up, they can buy a bigger one with their new savings. This way, they have both an emergency fund, and the starting point for a life of investing towards retirement, if nothing else.

(Of course your later point - if they’re struggling to eat - is still true as well.)

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