Is Investing $25.00 worth it?

Investing a drop at a time
As I have been having success investing $25.00 at a time, it is good to see what others have to say and if they are having success.

One site I like is Investopedia for all kinds of investment and financial knowledge.  They have an article called Is investing $25 a month worth it? which discusses some of the things to think about when investing $25.00.

 First is fees and it is a huge one.  I learned this when I started investing in Stockpile which charges a fixed $.99 per transaction which is quite small when compared with many other brokers.  I really like Stockpile for its fractional shares.  It allowed me to really grow my investment over time.

 However, I soon realized that $.99 on $25.00 is almost 4%, which is a lot of ground to make up to just break even.  This made me change from investing $25.00 at a time to waiting and investing $100.00 so the fee would be just 1%, a much more palatable commission.

 The article talks about fees of over $40 a year which is way to much for a small dollar cost average investment.  Instead, I found M1 Finance which I am really liking.  Like Stockpile, it has fractional shares but it has pies that make it easy to have a balanced portfolio.  My account is focused on dividend pays stocks to generate a consistent income.

Second the article talks about direct investing in mutual funds via fund companies.  There is no example but I assume they mean Vanguard, Fidelity and the like.  While have some IRAs at these companies, I haven't setup a direct fund yet as they have pretty large minimums compared to $25.00.

 lastly, paying of debt and reducing the mortgage.  This is an excellent way to invest your $25.00.  Reducing the interest you are paying will lead to greater financial independence sooner than investing in something like stocks.

 To quote the summary of the article:
Putting aside $25 a month to invest in a savings account, mutual fund or individual retirement account is a worthwhile venture. However, pay extra attention to make sure profits counteract fees. Also, consider alternatives, such as reducing your credit card debt or amount owed on your mortgage, which will allow you to invest larger amounts in the future.

Indeed, $25.00 invested regularly and consistently can be a great way to invest.

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