Investing does always requires a lot of money; you can invest with little money and make a fortune. Many people want to make investments but never feel they have enough money. There are several ways to start investing if you only have modest money. You do not need several thousand dollars to get started investing like many of the traditional vehicles you’ve probably seen before. There are people every day investing in the stock market with as little as $50 per month. You can become an investor right now with the same amount of money you are spending just to have a nice meal at a restaurant. The important thing is to just get started.
Here Are The 8 Ways To Invest With Little Money
Real Estate Portfolio
Perhaps you’ve looked into real estate before and wanted to flip houses or become a landlord but you just didn’t have enough money. There is a company called Fundrise that has a Real Estate Investment Trust that allows you to invest in real estate developments. They have opened up the doors to smaller investors with a program called the starter portfolio. You can begin investing with Fundrise with as little as $10. This is an excellent opportunity because it used to cost $1,000 to invest with them. Whenever they make money you make money. The amount can vary but on an average your return could be around 11%. With Fundrise you can select one of their projects to invest in, they will invest in the projects for you or a combination of both. You can get more information by going to Fundrise.com.
A savings account may not sound like much of an investment but it is a place to get started. You’re only going to earn a little bit of interest in the savings account but you have no risk of losing any money. While you’re accumulating a very small amount of Interest, you can use the savings account to accumulate larger amounts of money or other Investments later. Do your research because some banks offer cash incentives to open accounts with them. You also want to consider if there are stipulations such as direct deposits, maintaining a minimum balance and what fees if any are involved.
Employer Retirement Plan
This is one of the easiest ways to start investing money especially if you don’t have any. If you have an employer you will be getting some money and most of these Investments are done strictly by payroll deduction. Some employers provide minimal percentages for your retirement plan While others allow you to choose as low as 1 to 20% or more. This varies according to the rules established by your company’s playing. It’s a great way to build a nest egg to invest because you automatically app for your retirement plan each time you get paid. Since you don’t see it doesn’t even require any discipline unless of course you decide to stop deductions. The contributions are tax deductible and any money that you earn on your Investments will not be taxed until you retire and start to withdraw cash. The best part about this type of investment is that the employer usually provides a match to your investment. Sometimes it’s a small percentage but there are many companies that match 100%.
This is an option to join an online great peer to peer lending platform in which borrowers come to get loans and investors which are also the lenders provide cash loans. The Lending Club will let you invest as little as $25 however there is a drawback. Many states require a specific minimum net worth and you may need to show significant Assets in order to participate. So even though the investment amount is small your pockets may need to be large. Sports specific requirements and details contact The Lending Club.
US Treasury Securities
You can invest in US Treasury securities if you are looking to start with one of the more conservative Investments. This is one where your principal investment is protected from the market swings. If you’ve ever wondered how the national debt is funded it is with these debt obligations that are issued by the United States Treasury Department. Not only can you invest in these securities you can also sell them without an early withdrawal penalty. The US Treasury Department has a portal called treasurydirect that you will be able to use to buy US government securities for as low as $100. You also have the opportunity to buy treasury inflation-protected securities (TIPS) through treasury Direct.. When there are changes in the Consumer Price Index periodic principal adjustments are made to account for inflation and it also pays interest.
Dividend Reinvestment Plans (DRIPS)
DRIPS is the acronym for dividend reinvestment plans that allow you to invest in stocks with a minimum amount of cash. The stocks are with companies that will pay you dividends. There are several companies you can choose to buy their stocks and they will not charge fees for these Investments. In many cases your Investments can be made through payroll deductions. You will be able to grow your small investments into large Investments with major companies. As Dividends are earned they are reinvested to buy more company stock. This is done automatically so you don’t have to be concerned with it. It is a good idea to monitor what is going on with your investment.
You can open an account with an online brokerage firm such as WealthSimple or Sofi. Some brokerage firms allow you to get started with an initial deposit of $1,000 or less. Although firms like Charles Schwab require $1,000 minimum to open an account the can be waived if you have an automatic direct deposit of $100 or open up certain specified accounts. TD Ameritrade and E*TRADE does not require a minimum for your initial deposit. When you invest through a brokerage firm you have a wider variety of investment choices. This is a great advantage over other Investments.
Invest In You
One of the best investments you can make is to invest in yourself by acquiring new skills that will take your career to the next level. This will allow you to accumulate more money in order to make larger Investments. Perhaps you’ve always wanted to learn a foreign language, take a public speaking class or learn a new computer application. All of these things can make you more valuable and be able to get a promotion or a higher-paying position with a different employer.