Investing can be defined as taking a portion of one’s earnings, setting / invest it aside to earn some more money which could help in future, cater for emergencies or even for the education of the children when they have grown to start attending schools.
It does not matter how much one can put on the table to invest in. Many people believe that investing can only be possible when earning a high value of money. However, this is not the case.
Investing even $10 per month can go a long way in creating massive wealth in a short time because once the culture of saving and investing is built in mind, there is never going back, but the whole essence is to understand that however much little that one earns, it will yield great when invested.
However, investing is about risk, and it’s imperative to overcome the fear of risk because the solution to becoming great partakers of wealth is through risk and developing the culture of investing.
From a tried and a tested initiative, below are great ways on how one can invest a low amount of money.
Opening a Piggy Bank
A good example is during the New Year resolutions whereby every person is out to make solid decisions that you intend to fulfill before the year ends, a piggy bank is a sort of a cookie jar in the modern times that is lockable in the house.
One can opt to save a few coins on a day to day basis. For instance, if you purpose to save $2 per day, it will be a surprise that at the end of the year, this investment will have accumulated to a cool $750.
This is sufficient enough to enable one to start a lucrative business which could not have been possible if this simple investment did not take place. The piggy bank can be in the form of an old container in the house that has been modified for saving or one can opt to buy in the banks who offer such home bank services.
Investing in Mutual funds
This is another excellent way of investing the little money available. When you invest in mutual funds, it means that you are investing in shares which have enormous benefits that include;
- Dividends payout- Usually, they pay the dividends on an annual basis thinking on the number of shares.
- There is also an increase in the market value of the portfolio. One can opt to sell off the shares when the prices go up and get higher profits upon sale rather than keeping it or spending it unnecessarily.
The good thing with investing on mutual funds lies on the fact that there are fund managers who are readily available to advice on the best security to purchase within a given time and will yield profits that will be worth investing in.
They are also affordable all over such that there is no secret no the hassle involved in getting the right fund to place your money in.
The best thing is for the low investor to agree with the company on the much they can be able to part with every month and possibly set up a standing order which will be transmitted automatically when due for payment.
Most employers encourage their staff in this venture and also advise the best companies to invest in. At the end of it all, it will be to the benefit of the investor.
As the saying goes that you should not put all your eggs in one basket, it’s imperative to diversify your savings in different mutual funds, in case one goes down, you will not solely lose your entire kingdom.
Save using an App
In the current generation of global Information technologies, mobile phones have apps meant to help in saving. For instance, an app that was developed by Robinhood back in 2015 has been doing great especially when saving small amounts.
This app has the capability of linking to your debit card such that it will be automatic to save.
Betterment app offers excellent service, and in order to sign up your portfolio in the company’s information, the app prompts you with fundamental questions such as your age, the income per month and also the purpose of investing.
This is in a bid to offer the best advice towards the model you are about to enroll in.
With the little amount it charges in the investment account on a monthly basis, it will be important to settle for it because its advantages outweigh the disadvantages.
Lending to the peers
As an investor, it’s critical to check on all sides of investing however much risk this can be. For one peer to peer lending can yield high profits. For example, when the business people around you are in need of purchasing stock for the day, you can offer to become the bank lender in this instance and agree to be repaid after a given number of days with interest.
This is a lucrative business so long as practiced professionally. Either way, identify a lawyer who will be able to cover you on a monthly basis in case some of the people default.
One of the Financial Advisors in Kansas City is for the option that pear to peer lending is an excellent alternative in comparison to the stock markets available.
It may look awkward and unrealistic but believe it that investing in oneself can go a great way in making life enjoyable.
For instance, when I visited the U for the first time, it was a challenge to me that my friend who had invited me had a vast library in his house. When I asked the reason behind having so many books, he said it’s for self-improvement and also to help his children understand life better when they read some of the life challenges when they grow old. What a challenge, thinking about the future while investing in books. Some of these were motivational books, environmental books and many others that challenged me.
Leadership is all about learning and to be able to develop the leadership characteristic whether for yourself, continuous reading on a day to day basis will be a catalyst to making solid decisions for our future generations.
My advice would be to think of the future with investments, and it would be horrible to have nothing upon retirement.
Impulse buying will only be fun for a short time but think of the future. Imagine going for retirement with no money. Depression will set in sooner than you may think and for sure, death will be the next possible option.
As such, invest wisely where possible, at the right time, and with the right attitude and time will tell how peaceful it will be to overcome the challenges that people go through. Specifically, if can’t invest anything during the days that they had strength.
Therefore the best decision to make is to purpose to start somewhere however much small it may look like. Research for all avenues of investing and decide on the best option that fits you. Once you are up, the saving culture will stick, and the love for saving will not depart.