You don’t need a lot of money to start investing. Believe me, the most important thing in investing isn’t how much you put in, but when you start.
And when we say “when”, we mean as early as possible. In investing, time is your strongest ally. Not intelligence. Not predictions. Time. Today I’ll tell you how to take full advantage of it, even if you're starting with just €50 a month. Because this habit can change your life over the long run.
SETTING GOALS
Before investing, you need to know your why. Do you want to build a retirement fund? Buy a home? Create an emergency cushion? Make a profit? Or simply protect your money from inflation?
Whatever it is, write it down. If there’s no goal, there’s no real motivation.
Then decide how much you can invest every month. It doesn’t matter if it’s €50, €30, or €100. What matters is consistency. In investing, consistency beats size. You don’t need to start with €1,000 a month. You just need a recurring habit.
Of course, to know this monthly amount, you need proper budgeting so you know exactly how much you earn, how much you spend, and what’s left each month.
CHOOSING INVESTMENT VEHICLES
You’ve set a goal, you’ve decided how much to invest. Now comes the question: where do you invest? If you’re just starting out, there’s no need for complicated investments or chasing the “opportunity of the decade”.
So what do we invest in then?
The answer is simple: ETFs.
ETFs are like a basket of many stocks. You buy one product, but you practically own a small piece of many companies. That means instant diversification, lower risk, and low management fees.
But it costs $140! I only have €50!
No problem. In that case, do the following: each month, deposit your €50 into your investment account. When you have enough for the ETF price, buy one share. Then repeat. Simple and, most importantly, doable.
CONSISTENCY
What we just described has a name: DCA – Dollar Cost Averaging. It’s one of the strongest strategies for beginners. It’s like buying at a discount without needing to predict anything.
It means you buy consistently every month, regardless of whether the market is high or low. This smooths out your average buying price and reduces risk. It’s a strategy that prioritizes discipline above everything else.
In simple terms, stop trying to predict the market. Just invest steadily. Every month. Period.
Let’s look at a simple example:
€50 per month for the next 40 years with a 10 percent return (the historical average of the S&P 500) grows to almost €280,000.
And how much will you have invested in total? Less than €25,000.
That’s more than ten times your money, with just €50 a month.
ADJUSTMENT
It’s important to adjust as you go. You start with €50. Fine. In a year, maybe you can afford €70. Later €100. Then €150.
So when income rises, your investments should rise too. If expenses rise but investments don’t, something’s off. Keep the same proportion. If you invest ten percent of your income now, aim to invest ten or even fifteen percent later. Without lowering your quality of life, just improving your financial habits.
And if a year is difficult? That’s fine. Don’t stop. Just reduce the amount while staying on track.
Every year, it’s good to do a small review. Check where you stand. If your goals have changed or you understand investing better, maybe it's time to adjust your strategy.
Maybe you want to add a dividend ETF or a specific stock. Or you may simply stay with the same strategy but with a higher monthly amount, because it works well.
Whatever you choose, do it consciously. That’s what makes the difference.