Lending Club Blog

How do I invest if I don’t have much extra money?

Being in college, it is sometimes really hard to have enough money to live, let alone extra money to invest! However, because of interest rates, it is obviously in your best interest to start investing now. Most of us don’t have consistent salaries while we’re in college, so how do we consistently invest money?

The answer is to simply do your best. It might be impossible to save a thousand dollars a month, but if you can scrounge up 100 bucks or so each month, you will be able to get your investments seeded, so that when you actually do have a salary, it will be extremely easy to fund it and increase your investments. However, if you only have a little bit of money that you can afford to save right now, here is what I would do:

1. Check your savings – If you can find $3,000 (ask your parents?), you will be able to open up an IRA and fund it pretty well for its first year. Although it might seem like a lot of money to come up with, don’t forget that $3,000 now will be worth over $350,000 in 40 years, thanks to compound interest.

2. If you are close to having $3,000, save your money for a few months in a high-interest savings account. Once you get enough money, you will be able to open up the IRA.

3. If you won’t be able to raise the minimum amount required, open an IRA at an account with low minimums. There are many funds to choose from with low minimums.

4. Alternatively, invest in a non-IRA account until you’ve saved enough to open up an IRA with the minimum investment. For example, you can make some P2P loans on Lending Club with as little as $25 per loan and then deposit the proceeds in your savings account.

Once you have saved up enough, open up your IRA. Now, you have to fund it.

5. Figure out how much you will have to invest each month. Err on the side of caution here — how much will you definitely have?

6. Set up an automatic investment – Set your account to automatically take the money from your bank account and deposit it in your fund. By doing this, you will be paying yourself without even seeing the money, removing your own grubby hands from the savings equation. Your fund will have information on how to set up automatic investments.

Once you’ve followed these steps, you’ll have your account set up! That’s all there is to it. Pretty simple, huh?

Thursday, September 6th, 2007 at 2:28 pm

Comments (0)


Welcome Home

Lending Club named #5 on Forbes’ Most Promising Companies List

Get ready for tax season with Lending Club’s Tax Form Guide

New Adjusted Return Metric

See more
Lending Club Awards
  • Archives z

Recent Posts

Congratulations to Carrie Dolan – Named one of American Banker’s 2015 Most Powerful Women in Finance

Read More »
September 22, 2015

Welcome Nebraska, Kansas, and Indiana Investors!

We recently welcomed residents of Nebraska, Kansas, and Indiana… Read More »
September 21, 2015

Lending Club Job Spotlight: Technology & Member Support

Our Technology team develops and… Read More »
September 14, 2015

What $11 Billion Can Do

In celebration of surpassing $11 billion in loans and… Read More »
September 3, 2015

Welcome Arkansas, Iowa, and Oklahoma Investors!

We recently welcomed residents of Arkansas, Iowa, and Oklahoma… Read More »
July 14, 2015

Renaud Talks Marketplace Lending on Jo Ann Barefoot’s Podcast

This week, CEO Renaud Laplanche… Read More »
June 24, 2015

Lending Club Teams Up with Sam’s Club to Deliver Small Business Financing

Read More »
June 8, 2015

New Lending Club TV Commercial Makes its Debut!

Last week we began testing a new TV commercial showcasing… Read More »
May 26, 2015

Lending Club Honored with Entrepreneurial Company of the Year Award from Harvard Business School Association of Northern California

Read More »
May 15, 2015

Renaud Talks to Jim Cramer

A few months ago, Jim Cramer remarked that he… Read More »
April 15, 2015


We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014
View All w