Think investing’s only for the wealthy? You’re not alone. Many people assume you need thousands to get started – or that small amounts don’t count.

But micro-investing is changing that.

It gives you a way to build wealth gradually, with amounts that fit your life right now. You don’t need perfect timing or a lump sum. Just a few dollars, a bit of consistency, and a willingness to begin. And there’s more than one way to do it.

Some strategies are completely hands-off. Others require a bit more intention. Each one comes with its own benefits and drawbacks, and we’ll walk you through them.

This article isn’t to tell you what to do but show you what’s possible. That way, you can decide what works best for you.

So, what is micro-investing exactly? Let’s take a closer look.

What is micro-investing?

Micro-investing involves investing small amounts of money – s ometimes just a few dollars at a time.

This investing approach has become popular in Australia, thanks to digital platforms that remove previous barriers to investing. For example, there’s no need to save up thousands before getting started. For a full breakdown on how it works, see our article: What is micro-investing?

With micro-investing you can invest regularly, even on a tight budget. Some people add a little here and there. Others set up a weekly or monthly amount that works with their spending.

Micro-investing can feel more manageable than making a large deposit. And for some, it’s a way to build momentum early on. It’s especially appealing to first-time investors or people working towards long-term goals like Financial Independence .

But like any investing approach, it isn’t one-size-fits-all. There are a few ways to go about it, each with its pros and cons. Let’s walk through some of the most common strategies.

1. Manual deposits

Manual deposits let you choose exactly how much to invest and when. You’re in full control – nothing happens unless you make it happen.

Some investors like this approach because it’s flexible. You can adjust your deposit amount depending on your income, expenses or goals.

It can suit people with irregular pay cycles or those who prefer a hands-on style of managing money.

Potential benefits:

• You control when and how much you invest
• Flexibility to match your budget or cash flow
• No automatic withdrawals, so you’re never caught off guard

Potential drawbacks:

• You need to remember to do it
• It takes discipline to stay consistent
• It can be tempting to put it off

Though this approach might work for some investors, others may prefer more structure or automation. It depends on what keeps you on track.

2. Dollar-cost averaging

Dollar-cost averaging (DCA) means investing a fixed amount on a regular schedule. That could be weekly, fortnightly or monthly – whatever suits you.

It’s a set-and-repeat approach. You invest the same amount, no matter what the market’s doing at the time.

This can help reduce the impact of investing at the wrong time. You buy more units when prices are lower and fewer when they’re higher. Over time, this can smooth out the price you pay across all your investments.

Potential benefits:

• Builds a regular investing habit
• Reduces the risk of buying everything at a high price
• Helps take emotion out of the process

Potential drawbacks:

• You might still invest during market peaks
• A steady income helps keep things on track
• Less flexibility if your budget changes

For some micro-investors, DCA offers structure and momentum.

3. Round-up investing

Round-up investing takes the spare change from your everyday purchases and invests it automatically.

For example, let’s say you grab a croissant for $6.50 on the way to work. It rounds up to $7 and invests the extra 50 cents.

This is a popular micro-investing strategy because it’s passive and effortless. You don’t have to think about it. Those small amounts can build into something more with time.

Potential benefits:

• Set and forget – no extra effort needed
• Doesn’t feel like a big financial commitment
• Can help you start investing without changing your budget

Potential drawbacks:

• The amounts are small, especially for long-term investing goals
• Might not grow fast enough on its own
• Not every platform offers this feature

Some investors use round-ups as a gentle introduction to micro-investing. Others combine it with other strategies for more impact.

4. Recurring automatic investments

Recurring automatic investments let you schedule regular contributions on specific dates or around your pay cycle.

It’s a micro-investing approach that runs on autopilot once set up. No need to log in each time.

Some people invest every time they get paid. Others pick a date that suits their cash flow.

While this might sound like dollar-cost averaging , it’s slightly different. Dollar-cost averaging focuses on investing at consistent intervals. Recurring investments, on the other hand, focus more on timing that fits your life.

Potential benefits:

• Completely hands-off once set up
• Can help build long-term investing habits
• Makes it easier to stay consistent

Potential drawbacks:

• Less flexible if your income or budget shifts
• May overdraw if not timed with care
• Can feel disconnected from your day-to-day finances

For many micro-investors, automation is key. But it’s worth checking in now and then to make sure it still works for you.

5. Invest your cash rewards or cashback

Some platforms let you invest cashback or loyalty rewards instead of spending them. It’s another way to micro-invest with minimal effort.

You might earn cashback through shopping, card payments or reward programs. Rather than letting it sit idle, you can put it to work.

It’s not a common feature across all platforms, but some do offer it.

Potential benefits:

• Helps you grow your investments without using extra money
• Makes use of rewards that might otherwise go unspent
• Can support your goals without impacting your regular budget

Potential drawbacks:

• Reward amounts can be small or inconsistent
• Not all platforms support this feature
• May not feel meaningful if contributions are infrequent

This strategy can suit micro-investors who like using small wins to build towards long-term goals.

6. Goal-based micro-investing

Goal-based micro-investing means putting small amounts towards a specific purpose, like an emergency fund , a holiday, or early retirement .

Instead of investing without direction, you assign each deposit to something that matters to you. Many platforms let you label your goals and track progress over time.

Potential benefits:

• Makes your investing feel more purposeful
• Can help you stay motivated and consistent
• Encourages you to plan for different needs

Potential drawbacks:

• Too many goals can feel overwhelming
• Progress might feel slow if expectations are high
• Requires regular check-ins to stay on track

This approach can suit micro-investors who are motivated by goals and milestones.

7. Dividend reinvestment

Dividend reinvestment means putting any earnings from your investments straight back into the same fund or shares, rather than taking the cash.

It’s a common micro-investing strategy because it happens automatically and doesn’t require extra money from you to invest more.

Some platforms call this a dividend reinvestment plan , or DRP.

Potential benefits:

• Helps your investments grow over time without extra effort
• Builds the habit of reinvesting rather than spending
• Fully automatic once set up

Potential drawbacks:

• Dividend amounts may be small at first
• While some platforms automatically reinvest any earnings into a portfolio, others don't offer this feature
• Divdends aren't guaranteed, and may cease if investments perform poorly

This approach suits micro-investors who want to make the most of what they already earn through their investments.

8. Combining strategies for a personalised approach

Many micro-investors mix and match strategies to suit their habits, income, and goals.

You might use round-ups for everyday investing and dollar-cost averaging for something more structured. Some investors combine goal-based investing with automatic deposits, so each transfer supports a clear purpose.

There’s no single “right” mix. The best fit depends on what helps you stay consistent without adding stress.

Why combine strategies?

• Let's you use different methods for different needs . You might prefer round-ups for low-effort contributions but use goal-based investing to stay focused on bigger milestones. Combining strategies may help you match the right approach to the right purpose.
• Adds flexibility while keeping some structure . You can automate part of your investing (like round-ups), while still making larger manual deposits when your budget allows. It doesn’t have to be all or nothing.
• Helps balance short-term and long-term goals . You might invest cashback for short-term wins, while using DCA or recurring transfers for long-term goals like early retirement or a home deposit .
• Makes micro-investing feel more sustainable . Mixing approaches can keep things interesting. It may also help you stick with it through changes in income, goals or motivation.
• Encourages progress without pressure . By spreading out your strategies, you might be less likely to rely too much on one method. That can make the journey feel steadier and less overwhelming.

What’s the best micro-investing strategy for you?

There’s no single “best” strategy that works for everyone. Your income, preferences and goals all shape what feels right.

You might prefer structure, flexibility, automation or being hands-on. All are valid.

What matters most is finding an approach that works for you and helps you stay on track with meeting your investing goals.

No strategy is perfect, but the best one is the one you’ll actually stick with.

Keep it simple, stay consistent, and make it yours. That’s what turns a strategy into something that lasts.