Guess what; you don’t need to have an overflowing bank account to start investing!
There are plenty of good investment options out there that need no more than one hundred dollars. The trick is to invest smart, not more.
Before You Get All Excited, There Are Two Things You Need To Take Care Of
Firstly, always have an emergency fund ready at your disposal, because when a crisis crops up, you will have to latch onto your investment money for help. In the absence of an emergency fund, you will have to ruin your plans for investment. That’s why you should always have the emergency fund at hand.
Also, make sure you pay off all credit card loans. If you don’t have a lot of money at hand, it is better if you first clean your hands off any residual debt before jumping into an investment plan.
List of Small Investments Opportunities you can opt for if you are running short on cash
Investing in Individual Stocks
Have you always wanted to invest in stocks, but have never had enough money to buy more than one? There is good news for you. You can now invest in individual stocks. There are many brokerage firms, such as Ameritrade, Scottrade, and TradeKing that offer individual stocks for nominal charges. Suppose if you have around 500 dollars to your name, you can invest 490 dollars in stocks. So if each stock is around 10 dollars, you can buy 49 stocks and become a small owner in the company. This is a good way to get easy returns even with a small amount of money.
Some mutual funds in the market do accept small investments. The amount of money can range from 100 to 500 hundred dollars. Investing in a mutual fund is one of surest ways of getting returns, and are beneficial for those who are just stepping into the business. A mutual fund will allow you to own more than one stock at a time so that you can add some diversity to your investment portfolio. They are a trusted and popular option for those looking for long-term investing options.
Start A Business
You may think that starting a business requires oodles and oodles of money, but the truth is, you can start a business with only a few hundred dollars to spare. Some of the business options you can look at our- car detailing, crèche, lawn maintenance and the like. Your initial expense should go towards getting fliers and cards made for yourself. If you want to earn a little more on the side without having to manage two 9 to 5 jobs, a small business is a great idea for you.
Websites like Lending Club and Prosper bring together investors and borrowers looking for a small loan. Through these platforms, you can choose to lend some of your spare money to someone who needs it to pay student loans, pay medical bills or save enough to buy a car. What do you get in return? Well, you will receive a monthly payment against the principal with an additional interest as soon as the loans start getting repaid.
Start A Retirement Plan
Many people do start a retirement plan as soon as they start working, and it is crucial that you do so. This money comes in handy when the usual cash flow comes to a stop. Your employer’s retirement plan does not require you to have any extra money at hand because it shaves off a percentage from your paycheck itself. What that percentage will depend on you- You can start at 1% and go up to 20%- playing by the rules established by your employer.
Enhance Your Skill Set
You must be having certain hidden skills that you had to bury within yourself because of a cash crunch. Now that you have some extra money a hand starts honing your varied skills. From guitar lessons to learning a foreign language or two- there are many low budget course options available. You can pick one of them according to your budget. It’s good to keep a secret skill hidden under your hat- you never know when you may need one.
It is not often that you will have money to spare. As things get more and more expensive and jobs become less and less fruitful, the annual pay of an average individual is barely enough for him to live comfortably. However, in case a rare time comes, and you see that there are some savings that you can put to good use, don’t hesitate to start investing.
Be very sure to do a thorough background check on whatever line you use. Read some books, consult some experts do your diligence before taking any step forward. If you would like to share some Small Investments Opportunities which you think we missed out in the article, please do so in the comments section below.