4 Ways To Invest Small Amounts Of Money

invest money

Are you falling short of the initial investment amount most investment plans demand?

You don’t worry about it as there are plenty of profitable investment strategies that do not require you to invest a massive sum initially. You can begin your career as a novice investor with as less as $10. You heard it right! There are online investment platforms available which let you invest a tiny amount initially and learn the ropes of investment without losing a lot of money.

Here are 4 ways to invest small amounts of money.

1. Low investment Mutual Funds

A mutual fund is an investment strategy which allows a novice investor to be a part of high-end investment deals. That too, without him/her having to do a lot of research. If you are someone who is not willing to stomach the risk of losing money, investing in low initial investment mutual funds like Schwab Funds can turn out to be a great idea. They have more than 50 low investment mutual funds for you to choose from. Begin investing with as low as $1000.

2. Savings account

Do you want to park your cash without having to take major risks or put in the work?

You can park your money in a savings account and earn 7-8 percent interest each year. All you have to do is open a savings account in a bank or other financial institution and deposit some cash.

Keep adding money to this account without withdrawing unless it is necessary. A low investment will result in low profit but it better than wasting your hard-earned money in schemes that you don’t fully understand. Opening a savings account is the safest way to invest small amounts of money.

3. Invest in yourself

This is the biggest investment you can make. Investing in yourself can feel a bit strange if you are someone who has been living a stressful and busy life. Work pressure, family expectations, your goals, etc can put a burden on you. The best way to unburden yourself is by going out on treks, hikes, parties, social events, etc. These activities won’t cost you a lot of money.

4. Online investment platforms

With cryptocurrencies like Bitcoin and Ethereum reaching a level of saturation, you are left with investment apps like Stash, Fundrise, etc to earn passive income. These apps are generally free to download and you can get started right away.

Lets’s first talk about how Stash can help you invest the small amount you have. Stash has many accounts which can help you invest for immediate profit, invest for retirement and also create custodial portfolios. You can begin investing with as less as $10 today.

Likewise, Fundrise is also an online investment platform that helps you invest safely in real estate projects. By investing a small amount, you can earn 8.7 – 12.4% historical annual returns.

Summary

Investing money in small amounts is a wise choice for a novice investor. Even if you are at an intermediate or expert level, things like market risks, inflation risks, and Concentration risks are always going to bother you.

Little-known Ways to get out of a Car Lease early

Car lease

It can be fun to drive around in an expensive car that you don’t even own. No more worrying about maintenance, low monthly payments, tax benefits, no need to pay a huge sum upfront and no repair costs. Everything seems to have worked out perfectly.

But there is a catch in leasing a car. What if for some reason you lose interest in that car? Maybe you bought a new one or are going to relocate to another location. Anything can happen and in such a situation you need to find the cheapest way to get out of the car lease.

Here are a few ways you can get out of a car lease early.

1. Transfer your lease

Instead of worrying about the lease cancellation process, you can just find another person who wants the same car and willing to pay off the remaining lease. Find a third party buyer from a site like swapalease.com and get rid of the car forever.

SwapLease is also featured in popular publications like The New York Times and The Wall Street Journal. So, you can trust them to get the job done.

The process of transfer is not at all complicated. You just have to submit the required documents(of the third party buyer) along with a small transfer fee($50-$500). Your original leaser will verify the document and approve the deal.

2. Just return the car

This option is easy but is the least preferred way to get rid of a car on lease. When you return a car that you had on a lease, you are required to pay a hefty termination fee to your leasing company.

Along with the termination fee, you will also have to pay the remaining amount that you owe. Then, the leasing company will either sell or lease the car at an auto auction. This might you only respite as the sooner they sell/lease it, the lesser will be your depreciation amount.

3. Trade or sell the car to a third party

Selling or trading the car you have on lease is another popular and profitable option. You can’t directly go out to sell the car as you don’t yet own it. To find eligible buyers for the car, you need to first buy it from the leasing company(also pay the termination fee).

This method is profitable as you get to decide the price for the vehicle and also get to keep the profits. Secondly, trading the car to another dealer is also a good option. But you won’t get the same amount of profits. The only respite here is you get to avoid paying the taxes as you are not directly involved in the transaction.

Summary

By now you must have understood that there are some pros and cons of getting out of a car lease early. Since you made a deal with the leasing company, getting out it will not be possible without paying the penalty. However, the second option is the best one. Particularly, if the car in a good condition and the model sought-after by many people.