Investing when money is tight: being ambitious pays off!

Do you dream of securing your financial future, but think investing is reserved only those for with deep pockets? Think again: even on a modest starting budget, the sky's the limit. When it comes to investing, your opportunities aren't restricted simply because you don't have much to play with. Let's take a look at the options open to you.

Why investing is a smart bet even if money is tight

Allow us to clear up a common misconception: if you're looking to invest, you certainly don't need to have thousands of euros to hand – you can benefit from lucrative returns just like anyone else. Your starting investment may be small at first glance, but once you get the ball rolling, the outcome is very promising indeed. We've outlined three reasons to invest below.

The magic of compound interest

The compound interest effect means that in addition to earning a return on the amount you invest, you benefit from interest on this and future returns, too. The earlier you start investing, the greater the snowball effect will be. In other words, time is your best friend as an investor – even if you're starting out by investing on a small scale. The main consideration with investing is that it can involve certain risks. The value of your investment may fluctuate – both upwards and downwards. What's more, there is no guarantee of a high positive return.

Outpace inflation

Inflation adversely impacts the purchasing power of your savings. What €100 can buy you today will stretch to far less in ten years' time. Investing is a chance to counteract this decline in purchasing power precisely because of the advantage offered by the potential higher return compared to a traditional savings account.

More options for small-scale investors

The world of investments is now more diversified than ever. Alongside traditional investment plans and funds, you can now take advantage of various options that entail minimal financial risks and personal outlay while nevertheless giving you a strong chance of making a return on your investment.

Which options are available to you?

In principle, although your budget is smaller, you still have roughly the same investment options as the bigger spenders out there. There are a few potential exceptions, including investment types that require a higher deposit, such as asset management. Keep in mind that this varies from provider to provider. Investing means taking financial risks. With that in mind, make sure you are well informed about the possible scenarios. In the meantime, you can read up on the following types of investment:

1. Passive investing via ETFs or trackers

Passive investing involves regularly investing a fixed amount in a diversified portfolio, such as an ETF or tracker. The advantages include lower risk when it comes to market fluctuations, as you are investing in baskets of shares that follow certain indices, and you don't have to think about when the 'right' moment is to make a move.

This type of investment is ideal for beginners who are looking to make their money grow without having an active hand in the markets. In addition, there are no management fees involved, which can also be beneficial for your potential returns.

2. Actively investing in shares or funds

Actively investing without having a lot of money to hand is absolutely fine. You decide for yourself how much you want to be involved: from active trading where you choose your own shares to simply paying into an investment fund.

Be sure to have a clear strategy in place before starting, though.

Regardless of the budget you're dealing with, making successful moves in the world of investing rarely goes hand in hand with impulsive behaviour. Whether you have €250 or €25,000 to play with, a well-conceived plan of attack is essential.

• Define your goals: Do you want to save towards your pension, for a house, or just to build up your assets?
• Choose your budget: How much can you afford to put aside each month without impacting on your day-to-day life? Factor in unforeseen expenses to ensure your financial buffer is a healthy one.
• Which form of investment speaks to you best? How active do you want to be with your investments and how much risk are you willing to take?
• Stay disciplined: Emotion and panic are the shortcut to failing as an investor. Stick to your original strategy and don't allow yourself to be swayed by temporary fluctuations in the market. Adopt a long-term view.

What is your current investor profile? Fortunately, you don't have to answer this question alone, as we'll be by your side. As your future manager, it's important for us to know who we are dealing with and how we can get the most out of your investment for you, taking your lifestyle into account. Find out all about investment profiles here.

Investing is even more affordable with Keytrade Bank

As we said at the beginning of this article, the world of investing is more diverse and flexible than ever. It's more accessible than ever, too! At Keytrade Bank, we want to do our bit towards this,

which is why we have scaled back our exchange fees as of 22 January 2025.

• From now on, you'll pay just €2.45* on small orders up to €250 that are placed on the Brussels, Paris or Amsterdam stock exchange.
• For investments from €250 to €2,500, you'll pay €5.95* per order placed on the Brussels, Paris or Amsterdam stock exchange.
• We've also launched a more attractive tariff plan for the stock exchanges in the US and amended our prices for options in the US market.

* Fees include VAT and exclude stock exchange taxes.

In other words, the fees listed above open the door to the investment market – even if you only have a small budget to invest. So, what are you waiting for?

Be sure to check out our website for more information about our new stock exchange rates.

Which investment type best suits you?

Content to wait it out from the comfort of your hammock? Ready to dive deeper into the dynamic world of investing? At Keytrade Bank, we have an option for every type of investor: from our funds that can be opened with an investment as low as €25 per month to super-active trading channels. Discover all our investment options right now!

Start investing with Keytrade Bank now!