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BeginnerJune 25, 20266 min read

How to Start Investing with Less Than $1,000

You don\'t need to be rich to start investing. Here\'s exactly how to begin with a small amount.

The Myth of the Minimum

One of the most persistent myths in personal finance is that you need a significant amount of money to start investing. In 2026, that simply isn't true. Several major brokerages allow you to start investing in index funds with literally $1 — and the most important factor isn't how much you start with, but that you start at all.

Where to Start with Under $1,000

Fidelity — Best for Tiny Starting Amounts

Fidelity has no account minimum and allows fractional share investing from $1. You can open a Roth IRA or brokerage account and immediately invest in FZROX (Total Market, 0.00% expense ratio) with whatever amount you have available.

Charles Schwab

No account minimum, fractional shares available through "Schwab Stock Slices." Excellent for beginners who want to start small and grow over time.

M1 Finance

Requires a $100 minimum to start but then allows fractional investing automatically. Particularly good if you want to set up a portfolio of multiple ETFs and have them rebalanced automatically.

The Power of Starting Small

Example: Investing just $100/month starting at age 22 in an S&P 500 index fund averaging 7% annual returns produces approximately $262,000 by age 62. Waiting until age 32 to start the same $100/month produces only $122,000. Starting a decade earlier, with the same total contributions, nearly doubles the outcome. Time is your most valuable asset.

The Right Order When You Have Under $1,000

  1. First, make sure you have at least $500–$1,000 in a savings account as a basic emergency buffer
  2. If your employer offers a 401(k) match, contribute enough to get the full match — it's an immediate 50–100% return
  3. Open a Roth IRA at Fidelity and invest in FZROX or FXAIX
  4. Set up automatic monthly contributions of whatever you can afford — even $25/month builds the habit

What to Actually Buy

Keep it simple. One fund is enough to start: an S&P 500 or Total Market index fund. FZROX at Fidelity (0.00%) or FXAIX (0.015%) are both excellent. Don't spread $500 across 10 different funds — one broad market fund gives you all the diversification you need at this stage.

Disclaimer: For educational purposes only. Not financial advice. Consult a licensed financial advisor for personalized guidance.
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