How to invest wisely as a beginner – If you are just starting out and want to make the extra cash you earn start working for you. Investing it wisely can reap big benefits down the road. The question for many beginners is where to invest the extra money so that it will pay off. The good news is that you do not need to start off with a lot of money as many investors began with as little as $100.
The question for many beginners is where to invest the extra money so that it will pay off. The good news is that you do not need to start off with a lot of money as many investors began with as little as $100.
15 Best Ways to Invest Money for Beginners and Make Profits
Here are the smart 15 ways to invest money if you have never invested before and want to get the ball rolling.
1. 401(k)
Investing in your retirement savings may be the best investment of them all. You can start with as little as $100 and help secure your financial future when approaching retirement.
2. Betterment
This is an online investing platform that charges low fees and offers good returns. It’s an auto-pilot program that lets you put in the funds and then let them grow. This is for those who have considerably more to invest, such as $10,000, but it’s well worth it.
3. College Education for Kids
Just as you put back money for your retirement, so too should you put back funds to send your kids to college. Given the rapidly rising rates of college tuition, a 529 college savings plan is recommended. It offers tax advantages and the earlier you start. The more money that will be available when your kids are ready to head off to college.
4.Create a Business
While this is a high-risk approach, you can start up your own online business with only a little money. Thanks to affiliate marketing programs and the low cost of internet marketing. You can create a profitable online business in your spare time with a small initial investment.
5. Fulfillment by Amazon (FBA)
If you are a good bargain shopper, you can put your skills to use with the Fulfillment by Amazon program. Basically, you find the bargains, place them on Amazon for resell, do a little advertising, and Amazon does the rest. It’s a cheap, easy way to start making profits by working a few hours each week.
6. Invest in High Yield CDs
HYCDs one of the traditional ways to invest money that may not be as profitable as some others but does provide a great deal of security. In fact, high-yielding CDs are one of the safest investments that you can make.
There are several online banks that offer good deals on this type of investment along with checking and savings accounts and services.
7. Invest in Index Funds
There are many people who make considerable money from investing in index funds, including multi-millionaires like Warren Buffet. Index funds are great for those who do not have much money as you can start with $100.
Many investors recommend that you keep putting money into index funds so that you can begin to build up a substantial return.
While not as safe as high-yield CDs, a mixture of the two makes for the perfect investment combination for beginners.
8. Invest in You
Consider just how valuable an asset you are if you learn more about investing through education. You can learn new skills or become an investing expert by purchasing coaching programs that teach and motivate you to become better. Creating a better you may be the best investment you can make. You can start from here, read this post The 10 Best Personal Finance Books Ever Written That You’ve Got to Read
9. Motif
Motif is one of the best ways to invest for beginners.This is an interesting way to invest as you create a customized mutual fund or motif. This lets you invest in specific items such as soaring interest rates or perhaps anticipating a glut of natural gas on the market. You can start with as little as $250 and even create investments using up to 30 separate stocks.
10. Peer to Peer Lending
This is a good way to earn substantial interest by offering a short-term loan to someone who needs the cash right now. This type of lending is growing in popularity as it provides greater access to capital for borrowers while investors get to earn a healthy profit.
You can join places like the Lending Club to get started, but keep in mind this is one of the riskier ways to invest money.
11. Start Podcast
There is a reason why podcasting is everywhere. It’s simple to create, can be placed on other websites, and you can generate a considerable income if you talk about things that people are really interested in learning about. Sell your own products and you can make a considerable income all from podcasting on a regular basis.
12. Real Estate Investment Trusts
While purchasing real estate outright costs a considerable amount, buying real estate investment trusts (REIT) offers excellent advantages as you can earn high dividends, diversify your investments, take advantage of lower capital gains, and perhaps most importantly, never have to own the property. REIT is a great form of investing with lower amounts of money.
13. Reduce Debt
By reducing the debt on your credit cards and other loans, you can put more money into your pocket every month. Strive to get rid of all your debt first so you can keep more of your earnings and invest it without worrying about keeping up with debt payments.
Related Posts to Read:
- How to Pay off Credit Card Debt Fast Even When You Have No Money
- Top 10 Secret Laws of Financial Freedom that Rich People Don’t Want You to Know
14. Open Savings Account
The simplest way to start investing your money is by starting up a savings account. The good news is that many accounts can be opened for as little as $100, but the interest rates are usually low. Still, it’s a great way to get started and you can build up the money to invest in something more productive.
15. Stock Trading
Trading stocks are one of the most traditional means of investing and there are several online trading platforms such as Scottrade and E*TRADE that let you invest for a minimal amount. You can start learning the ins and outs of trading quickly and build up a substantial portfolio on your time. However, there is a considerable risk, so be careful.
You can choose one or more of these ways to invest money to create new income streams which will augment your bottom line. Plus, you will be on the road to saving and investing your money wisely which will pay off in the long run.
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