As a beginner investor, I’ll admit that it felt a bit overwhelming at first. I wanted to start investing, but I also wanted to make sure my money was being used in ways that aligned with my values. I didn’t want to just throw my money at any random stock or fund; I wanted to support companies and initiatives that were actively helping the environment, improving social justice, or promoting ethical practices.
Sustainable investing, also known as “green investing,” seemed like the perfect fit. But there was one problem — I didn’t have a lot of money to start with. As a beginner, I didn’t have thousands of dollars to throw around. In fact, I only had $50 to spare each month. But that’s when I realized that even small investments can make a difference, especially if they’re invested in the right places.
If you’re in the same boat, wondering how to start green investing with a small amount of money, I’ve got you covered. Here’s how I got started with just $50 and how you can, too.
Why I Chose Green Investing
Before we dive into the how, I want to share why green investing became so important to me. I’ve always been passionate about the environment and supporting companies that align with my personal values. But when I started thinking about how to put my money where my mouth was, I realized I could leverage my investments to not only grow my wealth but also support sustainable practices.
Green investing involves putting your money into companies, funds, or initiatives that prioritize environmental sustainability, social responsibility, and ethical governance (known as ESG investing). For example, this could mean investing in companies that focus on renewable energy, sustainable farming, or cutting down carbon emissions.
I felt like this was the perfect blend of doing something good for the world and still growing my wealth. The best part? You don’t need a fortune to get started. If I could do it with just $50, so can you.
Getting Started With $50
When I first decided to invest sustainably, I didn’t have a lot of extra money in my budget. However, I did have $50 I could spare each month. So I started thinking about how I could use that small amount to invest sustainably.
Here’s how I made it work:
1. Choose the Right Investment Account
- The first thing I had to do was decide where to put my $50 each month. After some research, I realized that opening a brokerage account would be the simplest option for me. With a brokerage account, I could easily buy and sell stocks, bonds, and ETFs (exchange-traded funds).
- For sustainable investing, I didn’t want to just buy individual stocks. Instead, I focused on ETFs and mutual funds that already have a built-in sustainable focus. These funds allow me to invest in a diversified group of companies, many of which prioritize green initiatives and ethical practices.
- There are several brokerage platforms that offer no minimum deposit and low fees, which made it easy for me to start with just $50. Some of the ones I considered included Fidelity, Charles Schwab, and E*TRADE. They all offered access to sustainable investing funds, making it easy for me to get started.
2. Focus on Sustainable ETFs and Mutual Funds
Instead of picking individual stocks, I chose sustainable ETFs that were already focused on green and ethical investing. ETFs are great for beginners because they allow you to invest in a basket of companies, which helps spread out the risk.
For example, I found ETFs that focus on clean energy, environmental protection, or companies that follow ESG (Environmental, Social, and Governance) principles. Some of the popular green ETFs include:
iShares Global Clean Energy ETF (ICLN): This ETF invests in companies involved in renewable energy, like wind and solar power.
SPYG ESG ETF: This fund tracks companies with strong ESG scores, meaning they are ethical and sustainable in their practices.
Vanguard ESG U.S. Stock ETF (ESGV): A diversified ETF that invests in companies with high environmental, social, and governance scores.
By investing in these funds, I was able to get exposure to a broad range of companies that focus on sustainability, without needing to research individual companies. Plus, the fees on these funds were relatively low, which meant more of my $50 went into actual investments rather than fees.
3. Use Fractional Shares to Stretch My $50
- Another key step was taking advantage of fractional shares. Since $50 doesn’t go far in the stock market when you’re buying full shares of expensive companies, I made sure to invest in platforms that allowed me to purchase fractional shares. This means I could buy a portion of a share instead of having to save up for a whole share of something like Tesla or Google.
- For example, I was able to buy fractional shares of some clean energy ETFs with my $50, which allowed me to get a slice of stocks like NextEra Energy or First Solar, even though their full share prices were higher than I could afford.
- Platforms like Robinhood and Fidelity offer fractional shares, which was perfect for me as a beginner with a tight budget.
What I Learned Along the Way
Over the past few months, I’ve learned a lot about how sustainable investing works and how to make the most of a small investment. Here are a few key takeaways from my experience:
1. It’s About Progress, Not Perfection
When I first started, I was worried that my $50 wasn’t enough to make any real impact. But over time, I realized that sustainable investing is more about progress than perfection. Even small investments can add up, and they can support companies that are actively making a difference.
I’ve found that getting into the habit of investing regularly, no matter how small, is more important than trying to hit the “perfect” investment. As long as I continue to invest, my portfolio will grow — and so will the positive impact I’m making.
2. Sustainable Investing Can Be Profitable
When people think of green investing, they sometimes assume that it’s less profitable than traditional investing. But in my experience, sustainable funds can offer competitive returns. Many of the companies that focus on sustainability, such as those in the clean energy sector, have been growing rapidly as demand for environmentally friendly solutions rises.
For example, when I invested in a clean energy ETF, I noticed that the fund saw decent growth over the last few months, even amid market fluctuations. While there’s no guarantee that every green investment will perform well, I’ve found that many sustainable companies are booming in today’s world.
3. Green Investing Isn’t Just About the Environment
One thing I didn’t initially realize was that green investing isn’t just about environmental sustainability. It also involves ethical business practices and promoting social good. Many of the companies I’ve invested in are also leaders in social justice, promoting diversity, and advocating for strong governance practices. These are just as important to me as environmental sustainability.
How You Can Start Green Investing with $50
If you’re ready to take the plunge into sustainable investing but only have $50 to start, here’s a step-by-step guide to help you get started:
1. Choose a Low-Cost Brokerage Platform
Look for a platform that offers no minimum deposit and low fees, so your $50 goes farther. Options like Fidelity, Robinhood, and Charles Schwab are great for beginners.
2. Look for Green or ESG Funds
Focus on ETFs and mutual funds that specialize in sustainable, ethical investing. There are plenty of green-focused funds that invest in clean energy, climate change solutions, and ethical companies. Some examples include the iShares Global Clean Energy ETF and Vanguard ESG U.S. Stock ETF.
3. Use Fractional Shares
Since $50 isn’t a lot, use fractional shares to maximize your investment. Platforms like Robinhood and Fidelity allow you to buy fractional shares, meaning you can invest in expensive stocks and ETFs without needing a large sum of money.
4. Stay Consistent
Even if you can only afford to invest $50 a month, stick to it. Consistency is key in building long-term wealth, and small, regular contributions will help your portfolio grow over time.
Final Thoughts
- Starting with just $50 might seem small, but it’s a powerful step toward investing sustainably and building wealth. Sustainable investing doesn’t have to be complicated or expensive — with the right tools and mindset, anyone can start, no matter their budget.
- By focusing on ETFs and mutual funds, using fractional shares, and investing in companies that prioritize both profit and positive environmental or social impact, I’m creating a portfolio that reflects my values while working toward my financial goals.
- If you’re a beginner, don’t let a small budget hold you back. Start today with whatever you can — and watch your investments, and the world, grow.
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