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Micro-Investing in 2020

7 min read
Micro-Investing in 2020

Micro-investing is a whole new trend that’s growing in popularity with millennials and people of all ages. It allows you to invest relatively risk-free and develop a sense of saving money. The best part is anyone and everyone can get involved. Let’s take a look at micro-investing in a bit more detail.

What is Micro-Investing?

It’s not much different than saving money, except the amounts are in small sums. That’s why it’s affordable by anyone. You can even start with 5 dollars if that’s all you have to spare.

The money is invested in various ways by the app or whichever platform you choose, and hopefully yield an ROI (return on investment) in return. Keep in mind that the sums of money are small, hence the word “micro”, so you shouldn’t expect to become a millionaire overnight.

Some micro-investing platforms are linked to your bank account and perform little investments automatically. A lot of the time, your transactions are rounded to the nearest whole and the and the change goes into your micro-investment.

Should I Micro-Invest?

A good place to start is to ask yourself is, as TIPS Dollar puts it, “what’s my ultimate incentive in life?” What is it that gets you going and what are your values? Some of us need more money than others to meet our desires, and that is a fact.

While micro-investing may not get you very close to that mansion you dream of, it does provide you with the basics of investing (and you don’t need to be an expert!).

There are also much lower fees attributed to micro-investing, which in turn keeps more in your pocket. You can then build an impressive investment portfolio for yourself.

The earlier you start, the better. Since most of us won’t feel the effects of missing 5 dollars a month, you can reach bigger financial goals without much effort at all! You can always move your accumulated wealth into larger and riskier investment services for a higher ROI in the future.

Benefits of Micro-Investing

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It’s easy to start, and sometimes it’s as easy as monitoring and participating via a simple to maneuver app. Sometimes the apps even allow the investor to choose the assets they invest in that align with their beliefs. If you are an animal lover or environmentalist, you can choose to invest in stocks that benefit your cause.

It doesn’t take much learning and you might even see your personal finances and spending habits take a turn for the good as well. It’s also about the experience and the learning process. It’s relatively low-risk and there are minimal downsides to micro-investing (such as not meeting retirement goals).


If you aren’t depending on micro-investing for your livelihood and you just want to generate some passive income, they are a smart way to go. Stay up to date on the market and you can even test the waters if you feel uncomfortable starting off with a larger sum. You can make it work within your budget for little to no risk at all.

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