Think you don't earn enough to invest in ASX shares? Read this

Here's how you can start investing with as little as $5.

Sebastian Bowen

Author Bio Sebastian Bowen has been a Motley Fool contributor since late 2018. Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record. Areas of Expertise Dividend investing ETFs Education Bachelor of Political, Economic, and Social Sciences (Government and International Relations), University of Sydney Social Media X/Twitter Favorite Investment Quote "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." – Benjamin Graham

Published February 8, 2023 3:30 pm AEDT

One of the most common refrains we hear from would-be investors considering investing in ASX shares is the simple "I don't earn enough to invest".

This is very understandable. Rising inflation, higher energy bills and rocketing interest rates… We are certainly living in challenging times when it comes to the cost of living.

But I'm here to tell you that almost anyone can invest if they put their mind to it – even if you don't earn as much as you might like.

Shares are not like property. You don't need a loan to buy them, and some can even cost under $1 each to purchase.

Now, there are a few things you should know about buying shares though.

If you wish to own individual shares, bought on the ASX, there is a minimum amount you have to spend – $500. That might sound like a lot. But if you put away $10 per week in a savings account, you'd have $500 to spend on your shares of choice in under a year.

If you put the cost of a daily cup of coffee (let's say $5) under the mattress, you could get there in 100 days.

But you don't have to buy ASX shares directly for a minimum $500 spend if you want to start investing. There are many other options available that require far lower amounts.

A couple sit in front of a laptop reading ASX shares news articles and learning about ASX 200 bargain buys — Image source: Getty Images

Under $500 to spend on ASX shares? No problem

There are some Australian brokers that offer trading for less than $500. For example, Superhero lets you invest with as little as $100. Or just US$10 if you want to buy American shares

For example, exchange-traded fund (ETF) provider Vanguard has an Auto Invest service that requires a $200 minimum spend if you're buying Vanguard ETFs or managed funds.

Commonwealth Bank of Australia (ASX: CBA) runs an ETF-focused brokerage service called CommSec Pocket. This only requires $50 to get started, with a small range of ASX ETFs to choose from.

But the options don't stop there. There are a number of investing apps that allow access to the markets for even less than that. Raiz, for example, lets you invest in ETFs with just a $5 minimum spend.

Spaceship, another investing app available in Australia, has no minimum investment amount to get started.

Now, remember that many of these services might charge you fees for the added flexibility. So make sure you're on top of those before parting with your hard-earned cash.

But all of these different options just go to show that you don't have to be wealthy to get started investing in shares.

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