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.