3 Affordable Investment Ideas That Can Make Real Money
Want to invest, but don’t have much cash on hand? There are plenty of options available for those who don’t have thousands of dollars lying around. Consider these affordable investment ideas that can help improve your financial status.
One of the hottest trends in financial apps is micro investments. These apps generally use a kind of “spare change” approach to help users invest without feeling like they’re sacrificing a significant amount of their current available funds. In fact, most apps work automatically in the background so that users often don’t notice how much they’ve invested until they check their balance.
One popular example of this type of micro-investing app is Acorn. The app rounds up your purchases to the nearest dollar and deposits the extra money into an investment account. Though it’s just a small amount each time, the money can add up if you make frequent purchases. The setup is easy and you only need an initial investment of $5 to get started. There is a low monthly fee, but for beginning investors who want to build up a portfolio with very little work (or cash) involved, micro-investing apps are a solid option.
If you’re looking for a big payoff when it comes to small investments, consider trading penny stocks. These stocks have a value of $5 or less per share and are traded on over-the-counter (OTC) markets rather than in traditional stock exchanges. In addition, most people don’t hold on to these stocks as long as they might with a regular stock traded on the NYSE. Instead, penny stock investors are looking for a quicker turnaround on their investments.
These investments have a high-risk profile, so it’s important to understand how to trade penny stocks before you get started. That said, they have the potential to provide impressive returns in a short amount of time. Penny stocks offer an approachable intro to trading for those with only a little money to invest.
Another easy way to start your investing journey with a limited amount of money is to buy savings bonds. These bonds can be purchased through the U.S. Treasury’s bond portal, Treasury Direct. There are savings bonds available for as little as $25, making it a great option for those who want a reliable and safe investment without having to come up with a lot of cash upfront.
The interest rates for savings bonds can vary depending on economic conditions. Savings bonds are a very low-risk investment, but that also means that the return on your investment isn’t going to be particularly high. While you won’t get huge returns, it’s a good way to invest if you aren’t in a rush to make money. If you hold on to your bond to its full maturity, the compounded rate of return will increase significantly, providing a better payoff.
Don’t let a limited amount of money keep you from investing wisely. Use these suggestions to improve your financial standing through smart investments.
Penny stocks don’t look like a good “investment” idea. May be for a quick buck that too if you can as any stock investing needs a lots of knowledge.
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