How to Start Investing with Just $1 - And Why Many People Choose to Start Early

You have $5,000 USD sitting in your account.

You may be thinking about investing it. You’ve probably heard about index funds, stocks, and long-term wealth building. You may also be aware that holding cash does not generate returns and that inflation can reduce purchasing power over time.

But you’re hesitant.

Investing can feel like it’s only for people with large sums of money, brokers, and years of financial experience. Concerns about losing money or making mistakes are common.

So many people do nothing. Their $5,000 remains in their account, not generating returns, while inflation continues to affect its value.

This is where most people get stuck.

The Real Barrier to Investing: Fear, Not Money

For many people, the barrier to investing isn’t capital. It’s confidence.

Making investment decisions can feel overwhelming without prior experience. Committing a large amount of money before understanding how investing works can feel risky.

This fear is rational. But it's solving the wrong problem. The solution isn't to avoid investing, it's to start small.

Start With $1

Many investing platforms require $100, $500, or $1,000 minimums, which can create a psychological barrier. It can feel like you need to “get it right” before committing meaningful money.

nsave removes this barrier and allow users to place investment orders with very small amounts.

For example, a user could invest $1 in a broad market index fund.

This allows someone to experience the process of investing without committing a large sum upfront.

Instead of holding all funds as cash, a small amount is allocated to an investment, where values can rise or fall based on market movements. Historically, broad market indices have experienced long-term growth, but returns are not guaranteed and losses are possible.

You've moved $1 from cash (earning 0%, losing to inflation) to an index fund (earning market returns, historically 8-10% annually). Your $1 now works for you.

Why Start Small Matters

When people invest small amounts, their approach often changes.

You stop overthinking and start learning. Observing how investments move over time can help build familiarity with market behaviour. 

Someone might check their investment periodically and see small fluctuations, up one week, down the next. This can provide real-world exposure to how markets behave. This is worth more than reading books, you're experiencing the market yourself.

You discover your actual biases. Once real money is involved, even in small amounts, behaviour often changes.

For example, someone might invest $5 in a tech ETF and feel uncomfortable if it drops 3% in a day. This can reveal a lower tolerance for risk than expected. Another person might invest $5 in a broad index fund and feel comfortable with modest fluctuations, learning they are more tolerant of volatility than they assumed. These observations can help individuals better understand their own risk preferences.

You get comfortable with the mechanics. Investing involves processes that can feel unfamiliar at first.

Placing an order, seeing it execute, and viewing an investment position in a portfolio can take some getting used to. Doing this with a small amount can reduce pressure while learning how the system works. Using small amounts does not remove risk, but it can help people become familiar with the mechanics before making larger decisions.

The Real Cost of Not Investing

Consider the following illustrative example.

You have $5,000 USD. You hold it in your nsave account, which does not generate returns.

If inflation in your country is 6–8% annually, the purchasing power of that money may decrease over time.

Approximate annual impact: $5,000 × 6–8% = $300–400

Over 5 years, the purchasing power of $5,000 could be closer to $3,500–3,700, reflecting a reduction of $1,300–1,500 due to inflation.

By contrast, if $5,000 were invested in a broad market index fund, historical averages suggest positive long-term growth, though outcomes vary and losses are possible.

For illustration only:

After 1 year: ~$5,400
After 5 years: ~$7,347

These figures are hypothetical and based on historical averages. Actual results can differ significantly.

The difference between investing and not investing can be substantial over time, but investing always involves risk, including the potential loss of capital.

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‍This content is provided for informational and educational purposes only and does not constitute financial advice. Investments involve risk, including the potential loss of capital, and past performance is not indicative of future results. Any examples or data are for illustrative purposes only. Before making any investment decisions, consult a licensed or qualified financial advisor who can assess your individual financial circumstances and objectives.