Investing sounds scary to some people, they think one needs millions in their accounts to invest.
The truth is, that is not true at all.
The idea of not knowing how to invest can be overwhelming I know.
I’m here today to guide you how to invest with the little money that you have.
In today’s post we are going to break down to you importance of investing as a beginner.
Your $100 in your bag might not be the same value in 5 years to come.
One important key investing as a beginner is trying to put some money away, it could be every week, every month.
Investing as a beginner obviously one will be having soooo many ideas running through your head.
Probably you might be thinking “Ohhh I HAVE TO GO MEET SOME MILLIONAIRES”!
With the technology these days everything is right at your hands, and with that I mean your smartphone.
Why should deliveries be soo at hand and investing is not?
Did you can make investment just by using your smartphone only.
Be it $25, $250 , $2500 no matter the amount is you can invest in anything.
Let’s get real for a second here.
Investing small expect the results to be little whereas investing big you get big returns.
So let’s jump into the best ways investing as a beginner
10 Best Ways Investing As A Beginner With Little Money
Today I’m going to talk about guiding the beginners on how to get started with investing money.
Which platforms are suitable for beginner investors.
If you never invest there is no way you are going to be a millionaire in future.
One need to take a step for the better.
1. Robo-Advisor
Robo advisor helps you to divide your savings across different stocks and bonds.
You can invest for as low as $100 in your account.
It is done by a computer software,this is good if you don’t wan to hire any humans to control your finances.
Platforms like Betterment offer such services, it is easier to open in minutes.
It takes care of all the procedures for your so that to avoid all the paperwork provided in banks facilities
All you have to do is invest and track your progress as you move on.
2. Investment Apps
There a quite a number of a few investment app out there, free of charge that help you to start investing right away.
These types of apps allows you to invest for as low as $1 no minimum amount is required.
Free to download and most of them have no commission nor fees to charge you.
Free investment app can pay your interest and grow upto $1000 just by being idle.
They also give you a platform where you can interact with other advance investors.
3. High Yield Savings Account
I remember how my mom used to keep for me a small wooden box to keep my money inside.
It had a padlock outside, and she kept the keys to it, to make sure I don’t use the money.
I used to be afraid once I put money in there it’s never coming out.
Little did I know she did for my own good. I still have that box until today and it has helped me save alot of money.
It can be anything, cookie jar, a box, drawer just anything you know you can use for quite sometime.
Left over change from coffee shop, grocery it could turn to alot of money.
4. Crowd Funding
Investing as a beginner crowdfunding might not be for you,but it doesn’t necessarily mean you can’t do it.
Crowdfunding is the process where you invest in real estate with very minimal amount.
Did you know you can invest with as low as $500.
You coordinate with real estate investors and buy some properties, you become partially an owner and once the property is sold out you get your deserved share.
With just $500 you can get big returns on investments.
5. Employer Retirement Plan
As a beginner this types of investment is appropriate for you because you don’t necessarily need money on hand.
It is automatically setup on your payroll deduction, you can agree with your employer to deduct from 1% upto 20%.
It all depends on the rules created by the employer’s plans.
This types of investment is tax free and until you start withdrawing money from your retirement money.
Investing as a beginner this should be probably one of the top ways you should start off with.
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6. DRIPS
DRIPS is also known as dividend re-investment plan system, it gives you the opportunity to invest into stocks of companies that pay with dividend with very minimal investment put forward.
Large companies out there, most of them offer DRIPS and if there is any particular company you like,it is the time to invest on it.
It is also connected to your payroll deduction,the amount is deducted every month for a certain percentage of your salary.
When you earn dividends, they automatically reinvest it to buy more and more stocks.
7.Invest In Minerals
Gold and other minerals have high value, invest in a simple rock and lock it somewhere hoping the value will appreciate during the coming years.
This type of investment it is risky, because depending on what mineral you buy their value might not rise that much.
As a beginner investor this would not probably be your number one solution but it can be a suggestion.
Gold and other minerals sometimes rise and deflate according to the currency fluctuation, so with this kind of investment one should do a little bit of research before moving forward with the idea.
8. Livestock
Investing in commodities like oil, gas and livestock helps you bring bigger investment in the future.
But it is not that simple, before investing in a product you should be able to know if the market price for that product is higher than what you are investing on.
For example you invested in a product costing you $100, in future the product should be able to bring you back an investment profit of atleast $200.
Even when you decide to sell your share on such a product you should be able to sell at a higher rate.
9.P2P
P2P is also known as peer to peer lending, this type of investment links investors and borrowers together.
There is a site for P2P unlike the traditional banking system, this type of websites sets rates and terms for each transaction.
This is how it works:
- Investor opens account
- Deposits money
- Applicant posts financial profile
- Loan applicant reviews rates and accepts the offer.
So the rates are chosen by the investor and if the borrower is satisfied the transaction happens automatically.
10. CD
Certificate of deposit is a products usually offered by credit unions providing an interest premium, as long as the clients deposits big amounts of money and leaving it untouched for a period of time.
However if you are a beginner this might not be the sufficient way to start investing, it needs a lump sum of money involved.
