Tens of thousands of people forbid from investing money simply because they think they don’t have enough money to do so. If you have that kind of mind set, then please change it.
The big controversy of whether it takes money to make money isn’t out of context, but personally I think it takes consistent hard work to make money, and it takes money to make a lot more of it.
So stop thinking you don’t have enough money and start evaluating the options that are present in the market. There are plenty of investment options out there in the market for which require just a few hundred dollars every month or two. For example: Buy partial stocks in small amounts of a firm with growing stock value.
It’s significant for growth and for long-term monetary benefits. As long as you think negative, you don’t see good things happening. The moment positive vibes start flowing, everything falls in place automatically.
Be positive in your approach, research well, invest , and derive long-term benefits. Some of the best low investment opportunities you can harness are talked about in great detail. Read them, and choose the one that best suits you and your goals.
Mutual Funds are a known investment method utilized by many. They are a collection of stocks and bonds. People start with thousands of dollars just because they wish to invest in large firms. But they tend to neglect the returns small and medium firms give. These small firms don’t charge an upfront fee, nor are their investment rules too strict.
An individual can start with as low as $50-$100 and continue the same for few months or years as whatever decided. However, mutual fund companies expect regular payments without fail – whether it’s monthly, quarterly, or annually.
Mutual fund companies have open and closed funds. The former one is for both new and old investors, and the latter is only for new investors. A new investor cannot invest in closed funds.
Considering the fact that not everyone can invest thousands of dollars at a time, companies like Ford, General Motors, and others allow direct investment. In this, an individual can directly invest in the company and buy even one or two shares. While a few companies set a limit for direct investing, others are open for any amount.
Exchange Trading Funds (ETFs)
Exchange Trading Funds (ETFs) are yet another popular and low investment option availed by many. It is similar to mutual funds but trade like regular stocks. Moreover, there are no investment limitations. You can invest $100 or $10,000 if you already have that kind of money.
Besides the above three, there are many more methods which you can utilize to potentially earn high-returns.
It’s a known fact that investment is not as hard as paying heavy down payment for a car or a house. However, it’s not too easy either. It requires an individual to continuously contribute at least a smaller portion of his savings to get good returns, whether short term or long term.
Now that you’re determined to save, you should be cautious while investing. Investing in any offer that looks attractive is not at all what investment is all about. It is about analyzing and understanding financials.
Always take investment advice from the professionals and clear all the doubts and questions you’ve. Only when you know what’s good and what’s bad, you can take a wise decision about your hard-earned money. If you intend to invest in shares, bonds, mutual funds, research well. There is an index of 500 largest companies in America. Of which, you can only know after research and professional guidance.
Therefore, be aware of where and what you’re investing into. Reassess your investment annually or every month based on the amount investment and the area invested in.
Use Investment Calculator
Investment calculators are a great way to find how much you’ll earn in a specific period of time. Say from the time you start pouring in your money, to the time you stop and expect returns from it. Based on the type of investment, one can utilize any of the given calculators that are present online.
Compound Interest Calculator – The deposits in the saving account pile up and add interest to it on a timely basis. To calculate the total returns one would get after a period of time, compound interest calculator is used. In this, the annual savings, annual interest rates and number of years you plan to invest are all taken into consideration to calculate the returns.
Lump Sum Calculator – People who make onetime investment and expect a return on it on lump sum basis use this calculator. Even in this, the total amount, number of years, and interest percentage is taken into consideration.
If not these two, you can also you CD calculator to determine the ROI.
Save to Invest
If you’re still not sure you have enough money to invest, start saving as much as you can every day; even if it is few dollars. Bank of America launched a new program in America. In which, every purchase an individual makes is rounded up to the nearest dollar and the change is deposited to his/her savings account.
The program is named “Keep the Change Program”. People, who utilized this program, received a statement at the end of the year. They were surprised to see how much they saved in 12 months just by saving the cents and dollars from their shopping.
The point here is – save as much as possible and invest it rightly. Once everything falls in place, a saving and investment cycle builds up. You would no longer complain of not having money to invest again. It’s simple. Trust yourself.
Spread the Risk
To be able to make money, you’ll have to take risks. Be confident and increase your financial intelligence. There are no two thoughts that you would make money after that. But what’s important is to identify the risk and spread it out.
Most often, people neglect and fail to assess the risk factor. And as a result, end up losing their money and time with no benefits at all. Therefore, we suggest you too be cautious. Spread your risk. For example: Rather than investing in one big thing, invest in a number of small things. Because of one thing gets affected, you wouldn’t lose everything. You’ll always have support and backup to boost your confidence.
So, don’t put all your eggs in one basket. Instead, keep them in different baskets and relax by having a diversified portfolio. This way, you not just save your money and time but also reduce the risk of losing everything at once.
To end this post, investment is not just about money. It’s about doing research to know the best bet. And to invest money, time, and efforts, even in the smallest quantity. So from now on, before you complain about not having money to invest, think again. Believe in yourself and know that it doesn’t take millions of dollars to make another million.