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.

Does Home Contents Insurance Cover Mobile Phones?

content insurance

Mobile phone insurance might seem silly to most people. We live in a throwaway culture where any item under $1000 is replaced without giving a single thought. But someone who has lost their phone just within a few days of purchasing will know why it is so important to have your home contents insurance cover mobile phones too.

Losing your new phone hurts a lot. Especially, when you still have to pay EMIs for the next six months or a year. Imagine paying for something that you don’t even own anymore. No one wants to be in such an infuriating situation. This is why most people want their home contents insurance to also cover stuff like mobile phones.

What is home contents insurance and what does it usually cover?

Home contents insurance provides cover for the items that are inside your home. Damage to the household items due to a natural calamity, theft, or vandalism is usually a good reason to claim your insurance from your home content insurance company.

For people staying in a rented home, the renter’s insurance policy includes home content coverage under it. Renter’s insurance can either be purchased by the landlord or the tenant. This depends on the terms and conditions the two parties agree upon before signing the home agreement documents.

Now the most important question. What does a home contents insurance cover? A home content insurance covers the valuable items in your house like furniture, electronic(including your mobile phone), jewelry, pets, livestock, ammunitions, etc. So basically every item in your home that is subjected to damage during an untimely event.

What if a guest/roommate/family member loses or damages their mobile phone in my property? Will the home contents insurance cover them too?

A home contents insurance only covers people who live the house and are listed in the policy. For instance, if you are a married person, it is obvious that you will list your spouse and children’s names in the policy but a guest or a roommate living temporarily in your home won’t be able to reap the benefits of your home contents insurance.

If a friend or a distant relative wants to stay in your home for a long term and also desires to get their mobile phone insured, you will have to contact your home insurance/renter’s insurance company and get them on the policies list. Your monthly premiums will get affected, as there is one more member the insurance company has to take care of, now.

Summary

Home contents insurance cover is usually up to a certain fixed amount. For basic household items like TV, air conditioner, furniture, etc a fixed amount is set by the insurance company and losses beyond that amount won’t be covered.

For a mobile phone, the fixed coverage is more than enough unless you are planning to buy iPhone Princess Plus which costs roughly $176,400. In this case, you will have to purchase insurance for the actual contents of your home by submitting a list of the expensive items you posses.