How to Invest When You’re Broke

*This post may contain affiliate links.  Read my full disclosure for more details.*

When I was younger I used to think that investing was only for people who had a ton of money. Only people who were rich could possibly spare the money it took to buy stock and make income-earning investments. But I stumbled upon the perfect tool! An app that allows me to invest small amounts of money and earn a passive income.


I HIGHLY recommend that you download the app “Acorns” if you’re like me and want to invest a small amount without ever missing that money from your wallet.

Here’s how it works!

When you download the app, you’ll also enter in your primary method of shopping. Don’t worry, this is NOT the account that it will deduct money from so I have my credit card linked but it NEVER gets charged.  You can add more methods later but the app will track your purchases and ROUND UP whatever you spend. So when I spend $20.70 on groceries it’ll round up to $30 and add $0.30 to my “round up” account.

Once you hit a threshold of $5 in your “round up” account, it will deduct this amount from the account of your choosing. I personally have my checking account linked. By investing in such small amounts it’s hard to notice that the money is even gone! At first, I would invest less than $10 a month. I’ve recently upgraded to where I have elected to deposit a monthly amount in addition to my round ups. If you do elect to make monthly deposits YOU get to determine the amount!

While setting up your account, you’ll also get to choose how you want to invest your money. There are five portfolios to choose from that range from conservative to a more aggressive approach. As with all investments, there is inherent risk involved but if you choose one of the more conservative portfolios there is less risk. I have gone for a moderate portfolio to increase my income!

I’ve been using Acorns for about 2 years. In my first year, before I was adding a monthly deposit, I earned about $50 in investment income. Now that I’ve invested more, I earned over $100 last year. Definitely better than my savings account!

Some other things worth noting: Unlike many stock or investment websites and apps, Acorns doesn’t charge fees until your account has hit a certain amount. Even then I only get charged $1 a month. You’re also totally free to take out your money WHENEVER you want.

It may not be a “rich over night” investment but this is such a great way to get your foot in the door and begin to make smart decisions with your money, even if you don’t have a lot to spare!

Download the Acorns app here and get $5 to start your account!  (This is a referral link and when you download I will also get a $5 bonus. But I wouldn’t recommend unless I truly believed in the app!)

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