Putting money aside has become very complicated in recent years due to the rising cost of living. Despite this, even those who earn less than 1,500 euros a month are looking for a solution to build a small piggy bank for any unexpected events. To start, it is not important to have large amounts: today there are in fact accessible tools that allow you to invest even small amounts. Without taking excessive risks and with a little attention, even those with modest incomes can therefore approach the world of investments. Let’s see how.
Can you invest with less than 1,500 euros a month?
It is possible to invest even if you have a salary of less than 1,500 euros. However, it is important to be prudent, organize expenses well, avoid tools that are too complex or excessively risky and not be convinced by those who promise easy earnings in a short time. The initial objective should in fact be to protect savings and gradually build greater economic stability. Among the financial instruments accessible even with low sums there are:
- postal savings bonds;
- deposit accounts;
- ETFs;
- the Pacs.
Postal savings bonds
Among the simplest and most accessible tools even for those with little experience are postal savings bonds. These are products issued by Cassa Depositi e Prestiti and guaranteed by the Italian State which allow you to invest small sums while receiving interest over time. For long investments you can choose ordinary bonds which last 20 years and offer a return that grows starting from the first year and reaches up to 2.50% per year.
The reimbursement of these securities can be requested whenever you want, but the interest accrues only after the first year. If you want to invest your money for a short period, there are instead the 4-year Plus vouchers which, as can be seen from the name, last 4 years and offer a return of 1.50% upon maturity. Before this period it is possible to request a refund, both total and partial, but you will only receive the invested capital.
An example.
If you want to invest 1,000 euros, from the calculator made available by Poste Italiane, it can be seen that with the 4-year Plus voucher you obtain a net reimbursement value at maturity of 1,053.69 euros, while with the ordinary voucher, at the expiry of 20 years, you obtain 1,558.79 euros. However, stamp duty is not considered in the calculation.
Deposit accounts
If you want to start investing prudently, you can also choose deposit accounts, thanks to which you can leave the money in the account for a certain period in exchange for an interest rate. There are two types: free and restricted deposit accounts. The former allow you to withdraw the money whenever you want, while the latter provide a time constraint that must be respected in exchange for higher interest rates.
Among the best deposit accounts of the moment are those of Cherry Bank and Illimity. The constrained Cherry one offers the following gross returns:
- 3.25% after 6 months and 12 months;
- 2.20% after 18 months and 24 months;
- 3.25% after 36 months;
- 3.50% after 48 months and 60 months.
Illimity’s restricted one for Premium customers offers the following interest rates:
- 2.65% after 6 months and 12 months;
- 2.75% after 18 months;
- 2.90% after 24 months;
- 3.15% after 36 months, 48 months and 60 months.
An example of performance.
If you want to invest 1,000 euros, from the calculators made available by the two credit institutions, it can be seen that with Illimity Bank at the end of the 60 months you will obtain 1,116 euros, while with Cherry Bank 1,129.50 euros. However, stamp duty is not calculated.
ETFs
If you are looking for good diversification, ETFs are perfect as they allow you to invest in multiple companies at the same time. These are funds listed on the stock exchange that replicate the performance of a financial index: it means that by purchasing an ETF you are not investing in a single company but in a basket of simple instruments also suitable for beginners.
This feature allows you to diversify risk in a simple way: instead of buying shares of a single company, for example, an ETF can include hundreds of international companies belonging to different sectors. Some platforms also allow you to start with Pacs (monthly savings plans) by paying just 50 or 100 euros per month.
Those with little experience and a low salary could initially orient themselves towards ETFs that replicate global indices such as MSCI World or S&P 500. These are instruments that allow the investment to be distributed simultaneously across many companies, reducing the risk of a single security.
However, we must not forget that these products also involve risks: their value can in fact rise or fall based on the performance of the financial markets and there is no guarantee of return. Precisely for this reason they are considered more suitable instruments for medium or long-term investments.
The Pacs
Pacs or capital accumulation plans can be activated through banks, brokers or investment platforms and give the possibility of investing money, even small amounts, on a monthly basis in funds or ETFs.
An example are the CAPs in ETFs offered by brokers such as Trade Republic, Fineco or Scalable Capital. The way it works is simple: the investor chooses one or more ETFs, for example on global indices S&P 500 or Msci and sets up an automatic monthly payment. The platform, therefore, purchases shares of the chosen instrument every month without manual intervention.
Then there are the traditional banking Pacs on mutual investment funds which instead allow you to activate accumulation plans on funds managed through periodic and automated payments. Even for this last option you can start with small amounts to build capital over time.
What are the mistakes not to be made?
One of the main mistakes to watch out for when making an investment is to let yourself be influenced by viral or social videos that promise high earnings in a short time. Allowing yourself to be convinced can lead not only to making uninformed choices, but also to drastically increasing the level of risk.
We must then avoid choosing complex or highly speculative instruments such as cryptocurrencies without knowing how they really work. Those with a low salary should not approach these products, preferring the simpler and less risky ones.
Finally, it is essential not to use money that could be needed in the short term. In fact, if you have a limited budget, you may find it difficult to manage daily expenses.
