The Smartest $20 to $50 You Can Invest for the Biggest Return, According to Experts
Written by
Cindy Lamothe
Edited by
Jenna Klaverweiden
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If you’ve ever felt like investing is only for people with thousands of dollars lying around, think again. You don’t need to be the next Warren Buffett or win the lottery to start building wealth. Even small moves can lead to growth.
In fact, according to investing pros, even just $20 to $50 can be a powerful first step toward a solid financial future. The key? Putting that money in the right place.
While a single $20 bill won’t turn into a mansion overnight, financial experts agree that starting small and being consistent is what truly matters. And when you pick smart, low-cost investment options, your humble little contribution can actually grow into something meaningful over time.
A Low-Cost Index Fund ($20 to $50)
Chris Heerlein, CEO of Reap Financial, advised investing in a low-cost index fund through a brokerage account with no trading fees. With fractional shares, you don’t need hundreds to get started.
You can set up weekly $20 to $50 automatic purchases into a total market exchange-traded fund (ETF). Over time, that small habit can add up.
Vanguard S&P 500 ETF ($25)
According to Andrew Lokenauth, money expert and owner of Fluent in Finance, the Vanguard S&P 500 ETF (VOO) is the perfect starting point.
It tracks the S&P 500, and you can grab fractional shares through apps like Robinhood for as little as $1.
He started with $25 in the ETF last March and said it’s already up 12%. “Not too shabby for such a tiny investment,” he said.
Vanguard Total Stock Market ETF ($40)
The thing is, most people overlook how powerful small, consistent investments can be.
Lokenauth personally puts $40 each month into the Vanguard Total Stock Market ETF (VTI) through M1 Finance. The platform lets you automate these micro-investments without fees eating into your returns.
According to Vanguard, this ETF tracks the CRSP US Total Market Index and is diversified across growth and value styles.
Remember To Keep Fees Nonexistent
According to experts, the key with tiny investments is keeping fees nonexistent. That’s why Lokenauth advised sticking to commission-free platforms.
Traditional brokers could eat your $20 to $50 alive with fees. In fact, according to the Securities and Exchange Commission, fees can seriously dampen investor returns. A $100,000 portfolio with a 1% fee over 20 years will be worth $30,000 less than one with a 0.25% fee.
So it’s best to maximize your small investments and look for commission-free platforms when possible.
It’s Not Just About the Fund
Sure, choosing the right fund matters — but the real magic? It’s in the habit.
Apps and platforms, like Acorns, Betterment and many others, make it incredibly easy to automate tiny contributions — even as little as $5 a week. With automation, you’re not relying on willpower or memory.
You set it once, and it just happens. This is where consistency beats timing. Most people think you have to buy low and sell high or wait for the perfect market dip. But investing experts will tell you that time in the market is more important than timing the market.
The longer your money has to grow, the more it can compound, and the easier it gets.
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Sources
- Chris Heerlein, Reap Financial
- Andrew Lokenauth, Fluent in Finance
- Vanguard, “Vanguard Total Stock Market ETF.”
- Securities and Exchange Commission, “How Fees and Expenses Affect Your Investment Portfolio.”
