
Steven Reegler, CFA, CFP
Cole's Corner is where I share original insights, tips, and tricks to help simplify complex financial topics and spark new ideas. Think of it as a place to pull up a chair, learn something useful, and maybe even pick up a fresh perspective you can apply to your own financial journey. Each piece is written by me with the goal of being practical, approachable, and thought-provoking—so you'll always walk away with something valuable.
Cole's Corner: Turn Your Pocket Change into a Fortune
Hey everyone, and welcome back to Cole's Corner! This week, I want to talk about something that's on everyone's mind: money. Specifically, how to grow it.
A lot of people think you need a ton of cash to start investing, but that's just not true. What if I told you that you could build a nest egg with the same amount of money you spend on a few fancy coffees each week? I'm talking about starting with as little as $100 a month.
The Magic of Compounding: Your Money's New Best Friend
You've probably heard of compound interest, but do you really know how powerful it is? Albert Einstein supposedly called it the "eighth wonder of the world," and for good reason. It's the process of earning returns on your returns. It's like a snowball rolling down a hill, getting bigger and bigger with each rotation. When you invest your $100, it starts earning money. The next month, you invest another $100, but now you're not just earning returns on that new $100. You're also earning returns on the original $100 and the money it already made. It's a beautiful cycle that can turn a small, consistent investment into a significant amount of wealth over time.
Taming the Beast: The Ups and Downs of the Market
Now, I know what you're thinking. "But Cole, the stock market is so volatile! What if I lose all my money?" It's a valid concern. The market has its ups and downs, but there are some strategies designed to help mitigate this volatility: dollar-cost averaging.
It sounds complicated, but it's simple. By investing the same amount of money every month, you naturally buy more shares when prices are low and fewer shares when prices are high. This averages out your cost per share over time and helps to smooth out the bumps of market volatility. Instead of trying to "time the market" (which is nearly impossible), you're making the market work for you.
So, Where Do I Start?
The great thing about investing today is that it's more accessible than ever. There are tons of apps and online brokerage platforms that allow you to start investing with very little money. You can invest in a variety of things, from individual stocks to exchange-traded funds (ETFs) that offer diversification.
The most important thing is to start now. Don't wait until you have "enough" money. The sooner you start, the more time you give your money to grow and the more you can take advantage of the power of compounding.
That's all for this week. As always, do your own research before making any investment decisions. The information here is for educational purposes only and is not financial advice.
Until next time,
Cole
The views expressed herein are those of the author and do not necessarily reflect the views of Morgan Stanley Wealth Management or its affiliates. All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results. This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this material may not be appropriate for all investors. Morgan Stanley Wealth Management recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives. Any type of continuous or periodic investment plan does not assure a profit and does not protect against loss in declining markets. Since such a plan involves continuous investment in securitiesregardless of fluctuating price levels of such securities, the investor should consider their financial ability to continue their purchases through periods of low price levels. Morgan Stanley Smith Barney LLC. Member SIPC.