Gallio Letter: How Much Money Do You Need to Start Investing?
Less than you think. Fractional shares and zero-commission brokers have eliminated most barriers. The real barrier is the belief that you need a lot.
How Much Money Do You Need to Start Investing?
Key Takeaways
- Most brokers have zero minimums and offer fractional shares, so you can start with €25, €50, or €100.
- Consistency matters far more than size. €100 per month for 30 years beats waiting two years to invest €5,000.
- Cover your emergency fund and high-interest debt first, then invest whatever you can consistently contribute without needing it soon.
The Barrier Isn’t Money
The barrier is the mistaken belief that you need a lot of it.
Things have changed dramatically. Years ago, investing meant high commissions, minimum balances of thousands, and buying whole shares at hundreds of dollars each. You essentially needed €5,000-€10,000 to get started without paying excessive fees.
Now? Most brokers have no minimums. Fractional shares mean you can buy €10 of Amazon, or €1 of Tesla. Trading fees are zero or nearly zero. Investing is accessible to almost everyone.
The infrastructure changed. Your excuse became invalid. But the belief that you need a lot of money to start is still deeply ingrained.
Small Amounts Compound
Compounding doesn’t care about the starting amount. What matters is the rate of return and the time.
€100 per month at 7% annual returns for 30 years grows to roughly €120,000. Double the monthly amount to €200, and you get roughly €240,000. The monthly habit compounds either way.
Here’s the perspective shift: someone who starts with €50 today beats someone who waits two years to start with €5,000. Time in the market beats timing the market. The additional 24 months of compounding, even on a small amount, outweighs the larger lump sum.
The real minimum is whatever you can consistently invest without needing it soon. €25 per month? Perfect. The habit matters more than the amount. The regularity is the actual starting block.
Cover the Fundamentals First
Before putting money into investments, sort out a few things.
Emergency fund: 3-6 months of expenses in savings. Keep this accessible and safe in a savings account. This prevents forced selling during crises. You lose a job, car breaks down, medical emergency: you have a buffer that doesn’t come from selling your investments at the worst time.
High-interest debt: Credit card debt at 18% is expensive. Paying it off is a guaranteed 18% return on your money. Few investments beat that reliably. Kill the high-interest debt before building an investment portfolio.
Once those are sorted, anything extra is seed money for your future.
Finding Money to Invest
Most people have more slack than they realize.
Small expenses add up: daily coffee, streaming services you don’t watch, subscriptions you forgot about. Not about deprivation. About awareness. Review your spending one time, and you’ll probably find €50-€100 per month that could be redirected without changing your life.
The best approach: automate on payday. Treat investing like a bill. The day your salary hits, €100 transfers automatically to your brokerage account. You adjust your spending to what’s left.
This removes the decision. No willpower required. The money is gone before you could spend it anyway.
Waiting is Expensive
Every year you wait is a year of lost compounding.
Start investing €100 per month at age 25, and at 7% returns you’ll have roughly €120,000 by age 55. Start at 35 instead, and you end up with roughly €58,000. Ten years of waiting costs you approximately half your wealth. That compounds year after year.
It’s not about how much you start with. It’s about not delaying. Start with €25, €50, €100. Whatever. Just start.
Regular investing also removes the “perfect moment” pressure. There is no perfect moment. The market is always at some price. The average price you pay over years is what matters, and that’s exactly what consistent investing gives you.
Practical Steps
Open an account with a broker that has zero minimums and zero commission. Most modern brokers meet these criteria now.
Set up automatic monthly investments on payday. Pick an amount you can sustain -€50, €100, €200, whatever you can consistently contribute without stress.
Invest in a simple, diversified index fund. S&P 500 ETF, total market index, something broad and boring. You’re not trying to beat the market. You’re trying to capture it.
Add your first position to Gallio and set up your goal. See your progress toward your actual financial goal. Tracking it keeps you committed.
Don’t wait for the perfect amount. Don’t wait for your life to be more stable. Start now with what you have. The compounding gap between starting today and starting someday is the most expensive thing you can ignore.
Consistency beats size. Always.
How Much Money Do You Need to Start Investing?
Key Takeaways
- Most brokers have zero minimums and offer fractional shares, so you can start with €25, €50, or €100.
- Consistency matters far more than size. €100 per month for 30 years beats waiting two years to invest €5,000.
- Cover your emergency fund and high-interest debt first, then invest whatever you can consistently contribute without needing it soon.
The Barrier Isn’t Money
The barrier is the mistaken belief that you need a lot of it.
Things have changed dramatically. Years ago, investing meant high commissions, minimum balances of thousands, and buying whole shares at hundreds of dollars each. You essentially needed €5,000-€10,000 to get started without paying excessive fees.
Now? Most brokers have no minimums. Fractional shares mean you can buy €10 of Amazon, or €1 of Tesla. Trading fees are zero or nearly zero. Investing is accessible to almost everyone.
The infrastructure changed. Your excuse became invalid. But the belief that you need a lot of money to start is still deeply ingrained.
Small Amounts Compound
Compounding doesn’t care about the starting amount. What matters is the rate of return and the time.
€100 per month at 7% annual returns for 30 years grows to roughly €120,000. Double the monthly amount to €200, and you get roughly €240,000. The monthly habit compounds either way.
Here’s the perspective shift: someone who starts with €50 today beats someone who waits two years to start with €5,000. Time in the market beats timing the market. The additional 24 months of compounding, even on a small amount, outweighs the larger lump sum.
The real minimum is whatever you can consistently invest without needing it soon. €25 per month? Perfect. The habit matters more than the amount. The regularity is the actual starting block.
Cover the Fundamentals First
Before putting money into investments, sort out a few things.
Emergency fund: 3-6 months of expenses in savings. Keep this accessible and safe in a savings account. This prevents forced selling during crises. You lose a job, car breaks down, medical emergency: you have a buffer that doesn’t come from selling your investments at the worst time.
High-interest debt: Credit card debt at 18% is expensive. Paying it off is a guaranteed 18% return on your money. Few investments beat that reliably. Kill the high-interest debt before building an investment portfolio.
Once those are sorted, anything extra is seed money for your future.
Finding Money to Invest
Most people have more slack than they realize.
Small expenses add up: daily coffee, streaming services you don’t watch, subscriptions you forgot about. Not about deprivation. About awareness. Review your spending one time, and you’ll probably find €50-€100 per month that could be redirected without changing your life.
The best approach: automate on payday. Treat investing like a bill. The day your salary hits, €100 transfers automatically to your brokerage account. You adjust your spending to what’s left.
This removes the decision. No willpower required. The money is gone before you could spend it anyway.
Waiting is Expensive
Every year you wait is a year of lost compounding.
Start investing €100 per month at age 25, and at 7% returns you’ll have roughly €120,000 by age 55. Start at 35 instead, and you end up with roughly €58,000. Ten years of waiting costs you approximately half your wealth. That compounds year after year.
It’s not about how much you start with. It’s about not delaying. Start with €25, €50, €100. Whatever. Just start.
Regular investing also removes the “perfect moment” pressure. There is no perfect moment. The market is always at some price. The average price you pay over years is what matters, and that’s exactly what consistent investing gives you.
Practical Steps
Open an account with a broker that has zero minimums and zero commission. Most modern brokers meet these criteria now.
Set up automatic monthly investments on payday. Pick an amount you can sustain -€50, €100, €200, whatever you can consistently contribute without stress.
Invest in a simple, diversified index fund. S&P 500 ETF, total market index, something broad and boring. You’re not trying to beat the market. You’re trying to capture it.
Add your first position to Gallio and set up your goal. See your progress toward your actual financial goal. Tracking it keeps you committed.
Don’t wait for the perfect amount. Don’t wait for your life to be more stable. Start now with what you have. The compounding gap between starting today and starting someday is the most expensive thing you can ignore.
Consistency beats size. Always.