A common myth about investing is that a big fat bank account is required just to get started. In reality, building a solid portfolio can begin with a few thousand—or even a few hundred—dollars. Here is some specific advice, organized by the amount you may have available to begin your investments. This article will also cover some smart moves low-rollers can make to kick-start a savings and investment program.

4 Strategies to Start

Whether you’re planning to invest a little or a lot, engage in safe bets or high-risk gambles, these steps should help get your plans off on the right track.

Automatic Savings

The diligence to set aside a certain amount in monthly savings will reap rewards in the long run. If you lack the willpower or organization to do that on your own, help is available via smartphone and computer apps. The apps that make saving the least painful are those that round up your purchases and other transactions to the nearest dollar and put aside the “savings.” Acorns, Qapital, and Chime all offer ways to round up transactions from your credit or debit cards and return the money to you in savings-friendly vehicles.

Acorns, for example, puts the money into one of several low-cost exchange-traded funds (ETFs); these are good vehicles for small savers. Qapital adds the option to transfer money based on your chosen rules automatically. The money in a Federal Deposit Insurance Corporation-insured Qapital account is held with one of its banking partners. Chime, an online bank and app, offers a savings account that automatically sets aside a percentage of every paycheck you deposit, among its other features.

Short of using these apps, check with your bank about its own apps and other ways you might automatically transfer funds from non-savings accounts to those better suited to savings and investment.

Deal With Your Debts

Before you begin to save, analyze what it costs to carry your debt, and consider how rapidly you can be rid of it. After all, high-interest credit cards carry rates of 20% or more, and some student loans have interest rates over 10%. Those rates are higher than the average annual earnings of 9.2% or so that the U.S. stock market has returned over time.

If you’re carrying a lot of high-interest debt, it makes more sense to pay off at least some of it before investing. While you can’t predict the exact return on most of your investments, you can be sure that retiring debt with a 20% interest rate one year early is as good as earning a 20% return on your money. After that, you’ll need to avoid high-interest debt by building an emergency fund. “The first and best place to start investing is to ensure you have enough in your emergency savings,” says Jeremy Keil, a certified financial planner from New Berlin, Wisconsin. “Half of all Americans have less than $1,000 saved, and they are just one medical, credit card, or car bill away from big financial problems.”

Consider Your Retirement

A key goal of saving and investing, even at an early age, should be to ensure that you have enough money after you stop working. One priority would be to take advantage of the inducements dangled by governments and employers to encourage retirement savings. If your company offers a 401(k) retirement plan, don’t overlook it. That’s especially the case if your company matches part or all of your contributions.

For example, if you have an income of $50,000 and contribute $3,000, or 6% of your income, to your 401(k) plan, your employer might match that by contributing an additional $3,000. A less generous employer might contribute up to only 3%, adding $1,500 to your $3,000 contribution. You’ll always want to put enough into your 401(k) to get the total amount of your employer’s match. Not doing so is essentially throwing money away.

Additionally, 401(k)s and other retirement vehicles are good investments because of their favorable tax treatment. Many allow you to contribute with pretax dollars, which reduces your tax burden in the years you contribute. For other investment vehicles, such as Roth 401(k)s and individual retirement accounts (IRAs), you contribute with after-tax income but withdraw the funds without tax, which will reduce your tax hit the year you take out your funds.

“Once your emergency fund is set you could consider a Roth IRA, which helps you save for retirement, and allows your earnings to grow tax-free,” Keil says. “You would generally want a ‘target-date’ fund that gives you a mix of investments based on when you might retire, or an ‘allocation fund’ that gives you a mix of investments based on the risk you’re willing to take.”

Remember, if your money has grown for many years, there will be much more than you initially contributed so those tax-free withdrawals will be even more beneficial. Whether using a target-date or allocation fund, the earnings accumulate tax-free within the account.

Invest Your Tax Refund

If you find it hard to save money throughout the year, consider setting aside part or all of your tax refund as a way to get started with investing. It’s one of the few moments in the year when you’re likely to get a windfall that you didn't already plan to use on expenses.

Recommendations by Investment Amount

A few general points are worth underlining first. No matter your net worth, it’s essential to minimize your investment fees, whether on a checking account, a mutual fund, or any other financial product. That’s especially the case when investing on a budget because fixed fees will take a significant chunk of your savings. A $100 annual fee on a $1 million account is trivial, but a $100 fee on a $5,000 account is a financial hit. Carefully choose the costs when you put your money in an account, especially if you’re investing on a budget. You also need to weigh the likely returns on your investments against the level of risk you’re comfortable with and ensure that it's appropriate for your age. In general, your portfolio should become steadily less risky as you approach retirement.

How to Invest $500

It may seem like a small amount to work with, but $500 can go farther than you think in starting an investment portfolio. If you prefer to play it safe, park your sum in a certificate of deposit (CD) from a bank or other lender or use it to buy short-term Treasury bills, which can be purchased through an online broker. The growth potential with both options is limited, though it increases when interest rates are up, but the risks are virtually zero. It’s a way to earn a little on your money until your nest egg grows and more options become available.

For those comfortable with a little more risk, many choices are available, even for small investors, that promise greater returns than CDs or T-bills. One is a dividend reinvestment plan. You buy shares of stock, and your dividends are automatically used to purchase additional or even fractional shares. This is an excellent choice for small investors because the shares are bought at a discount without paying a sales commission to a broker. Buying a single share of a company’s stock can get you started.

How to Invest in ETFs

Another option for starting small is an ETF, most of which require no minimum investment. Unlike most mutual funds, ETFs typically have a passive management structure, which translates to lower ongoing costs. While transaction fees have been a concern when trading ETFs, many discount brokers now offer commission-free trades on ETFs, reducing the cost of buying and selling these funds. By choosing a broker that offers commission-free ETF trading, you can invest without worrying about additional transaction fees. If your broker does charge for trades, consolidating your investments into fewer, larger transactions could help reduce these costs.

How to Invest in Peer-to-Peer Lending and Crowdfunding

Near the top in risk, there’s investing in peer-to-peer lending. Crowdfunders connect investors and entrepreneurs trying to fund new ventures. As the loans are repaid, investors receive a share of the interest proportional to the amount they have invested. Some crowdfunding platforms have low minimums to open an account, such as $25 for Prosper, but others may require much more money.

Crowdfunding offers high risk, as many new ventures fail, but also the prospect of higher earnings. Generally, annual returns fall in the 5% to 8% range, but they can climb to 30% or more for investors who are willing to take a big risk or are simply lucky enough to back an especially profitable newcomer.

How to Invest $1,000

If you’re saving for retirement or to purchase a home that’s some years away, you might look for a low-fee target-date fund with a relatively low minimum investment, typically $1,000 or so. With this type of fund, you choose the target date. The investments in the fund are automatically adjusted over time, with the overall mix moving from riskier to safer as your target date approaches. This is important because when you’re just starting, you have time. You can make riskier investments that might earn higher returns. However, as you near your target date, especially if it’s your retirement, you want to protect yourself from sudden losses that derail your plans. With $1,000, you can also consider buying individual shares, which may have a higher risk but can generate higher returns. Investing in individual stocks that pay dividends is a smart strategy. You will have the option of receiving the dividends as cash payouts or reinvesting them in additional shares.

Real Estate Crowdfunding

Another option if you're interested in crowdfunding is to crowdfund a real estate investment. This involves working with an organization that takes funds from many investors and deploys them to purchase or upgrade real estate.

On top of enabling you to get involved in real estate with relatively small amounts of money, it gives you access to investments beyond the typical single or multifamily home. Crowdfunded real estate investments can include commercial space, large apartment buildings, hotels, or industrial buildings.

How to Invest $3,000

This investment level provides access to additional options, including more mutual funds. While some funds require a minimum investment of $1,000 or less, a larger sum is more common, such as the $3,000 required by Vanguard for most funds.

The long list of funds can be intimidating. But consider first an index fund, a type of mutual fund that tracks a specific market index, such as the S&P 500 or the Dow Jones Industrials, and offers relatively low fees. Like ETFs, index funds are passively managed, which means a lower expense ratio. The goal of an index fund is to match the index's performance at least. It also gives you broad exposure to several asset classes.

How to Invest $5,000

The possibilities widen at the $5,000 level. You have more options for mutual funds, individual company shares, index funds, IRAs, and for investing in real estate. While $5,000 isn’t enough to purchase property or even to make a down payment, it’s enough to get a stake in real estate in other ways.

The first possibility is to put money in a real estate investment trust (REIT). This is a firm that owns a group of properties or mortgages that produce a continuous stream of income. As a REIT investor, you’re entitled to a share of the income generated by these underlying properties. REITs are required by law to pay 90% of their income to investors in the form of dividends annually. REITs can be traded or non-traded, with the latter carrying higher upfront fees.

Real estate crowdfunding is a second option. The best real estate crowdfunding platforms can now accept investments from both accredited and nonaccredited investors. Many platforms set the minimum investment to enter private real estate deals at $5,000.

Investors can also choose between debt and equity investments in commercial and residential properties, depending on the platform. Returns for debt investments range from 8% to 12% a year. Equity investments can have higher yields if the value of the property increases. Keep in mind that this type of investment carries more risks than more traditional investments.

The Bottom Line

Investing can be quite complicated, but the basics are simple. Maximize what you save and invest and your employer’s contributions. Minimize taxes and fees. Make smart choices with your limited resources. That said, building a portfolio can become complex quickly, especially when considering your debts, specific tax incentives and obligations that might apply, and so on, let alone balancing risks and potential returns for different investment options. Consider getting help.

Given the technology and the fierce competition for your dollars, more resources than ever are available. Options include robo-advisors, virtual assistants that can help you create a balanced portfolio at a low price, and fee-only financial advisors, which do not depend on income from commissions on the products they sell. The hardest part of investing is getting started, but the sooner you do so, the more you can accumulate. It’s as simple as that.