10 ways to start investing small amounts of money. Having investments these days and time is exactly what we need.
Investing doesn’t necessarily mean you must have loads of money before doing it.
Putting money away regularly every month is a key to building wealth. With so many different options out there investing has never been straightforward.
1. Use the piggy bank approach:
To invest money, you will need to have money first off and to have the money you need to save.
If you have never saved up money, you can start by taking baby steps. Save a few dollars, let’s say 5 dollars in a week. Over one year it becomes $250. That’s a whole lot from where you were initially.
Try to live on a little less than you earn. Cut down on expenses and imbibe a saving habit.
Borrow a page from a kid’s book and save that money in a piggy bank or even a cookie jar.
You can even open online savings account like a chime. Chime offers a strong Annual percentage yield of 0.50% for their online savings account.
Additionally, with chime, there is no minimum deposit required.
2. Build a real estate portfolio:
Building a real estate portfolio with fundraising will make the whole process easier. Fundraise is very simple, they will invest your money in real estate properties. You will make money when they make money.
Your profits will vary based on the property you invest in. Fundraise uses a technology that pinpoints profitable real estate projects for you to invest in that will benefit your goals.
The satisfactory part of the fundraising is its low minimum. Fundraise has made it possible to invest without having thousands of dollars at your disposal.
With as low as $500, you can invest in fundraising. You can also choose different fundraiser projects to invest in if you want a much more hands-on approach.
3. Use a bank savings account:
You will not be able to earn a ton of cash on your investments if you are saving it in a bank, to be honest.
However, the benefit that a bank savings account provides is you can earn interest by even investing a little bit of money with zero loss.
The main reasons for a savings account are to accumulate a large amount of money to use as capital for investment later on.
These investments can have a higher risk but they will yield a higher return.
4. US Treasury Certificate:
Us treasury security is conservative security where your principal is protected from swings in the market.
They have maturity ranging from 30days to 30 years. You can buy these government securities for as low as $100.
Treasury Direct is our treasury department portal where you can invest in securities.
You can as well sell your securities there.
5. Invest in learning a skill:
Having a skill has always been a necessity.
To get to the next level in your career, you will need to self-develop yourself by acquiring new skills.
You can invest money in acquiring these skills, it can either be a new computer application, sales course, public speaking e.t.c.
A few dollars is all it will take to acquire this course.
The benefits of acquiring a new skill are endless, it could earn you a promotion, a raise in your salary, or even that dream job.
Some sites you can take up learning are, udemy, Google course, course era e.t.c.
Dividend reinvestment plans allow you to invest a certain amount in stock into companies that will pay a dividend.
The good news Is you can invest in such companies without paying investment fees.
By making contributions periodically, you get to build your investments over time.
When you earn dividends, it will be reinvested back into the company to buy more stock.
7. Brokerage firm online:
With $1000 or less an investor can open an account with a brokerage firm online.
Opening an account with a brokerage firm will avail you of a wider variety of investment choices.
Some examples of brokerage firms online are Wealthsimple, Charles Schwab, zacks trade e.t.c.
8. Mutual funds & ETFs:
Mutual funds and ETFs have minimum initial investment amounts. There are many mutual funds and ETFs out there that normally allow you to invest if you don’t have up to $1000. But some different mutual funds and ETFs can allow you to invest far less.
An example is the Schwabs total stock market index(SWTSX).
9. Having your own business:
You can invest in your own business, it’s a good way to save and also make money.
Investing in your business can be the best decision you will ever have made.
It is easier than ever to invest in your business with the advent of technology and social media.
10. Enroll in a retirement plan:
Enrolling in a retirement plan can be beneficial to you most especially if it is employer-sponsored and you are on a tight budget.
With a little as 1% of your salary, you can start that.
Most employers have the 401(k) plan, they invest your money in mutual funds and watch it grow.
You can also have a retirement plan set aside for yourself separate from your employer’s retirement plan for you.
In conclusion, investing a small amount of money can be beneficial to you because it helps you grow financially. The best time to start investing is now! What are you waiting for? Invest that $1 today.