If you’re waiting until the time you have enough savings to invest, you might never start! There are many investment options on Investors Hangout where you can get started investing with small amounts of money and a sizeable investment in the cause of time.
Many people put off investments because they think they need a lot of money to start investing. However, you can begin investing little by little and build wealth by developing good habits like putting away $100 every month.
If your goal is to save to be able to purchase your first property or achieve a particular purpose, taking small steps at a time will help you through the journey. We will look at the various options available on how to invest with 1001 financial obligations.
Here are 3 Things to Consider before Diving into a Small Investment Idea
Before you start your investment journey, you need to check your financial health so that you can prepare your fund adequately.
Set Up an Emergency Fund
First, you need to have an emergency fund that will cater for small emergencies like a car repair, unexpected medical bill or other small emergencies – otherwise, you’ll set up yourself for an enormous failure. Therefore, make sure you don’t use up your investment fund for unexpected emergencies.
Pay-off High-Interest Credit Cards
The sooner you pay-off high-interest credit cards, the less you’ll spend on interest rates. If you have limited resources, take advantage of clearing high-interest credit cards before you start investing. Paying this type of debt, you’ll be able to put more towards your fund.
Now, you can look at the various investment opportunities around you both short term and long term. If you have a short term goal, then we’d recommend you invest in a safe short-term investment like the money market.
The following three investment ideas will help you to grow your money.
1. Mutual Funds
These are securities that give you an opportunity to invest in stocks and bonds. The initial minimum investment is $500 which can be limiting if you’re a first-time investor with limited resources.
However, mutual funds are an excellent option if you are just getting started. They also allow you to expand your investment portfolio. You can set up an automatic deposit from your payroll or savings account for convenience.
2. Play Safe With individual Stocks
It’s possible to buy stocks with as little as $5 per trade. By purchasing shares, you can become a small owner of a company and benefit from your investment.
3. Start a Business
As a small investor, you need to look for small business opportunities for less than $500. Many ideas can earn you some money that requires little or no capital like dog walking services, starting a blog, child care services, and other creative ideas.
Many online apps platforms can make it easier for you to start off investing right away. However, ensure that these online platforms are safe, reliable and credible. If you want to start saving and investing you can consider our top three small investment ideas and grow your portfolio today.