A lot of people avoid investing because they believe that the only time someone can invest, is when they have thousands of dollars just to throw away. While it’s true that investing comes with some risk, it’s important to remember that it has value too. In a world where savings and current accounts aren’t going to give you much value for your cash, investing can be one of the best ways to develop your wealth and prepare for your future.
If you haven’t got a lot of cash to spare, that doesn’t necessarily mean that you can’t invest. The key to building your wealth will always be in developing positive financial habits. If you make investing a habit, then you’ll be in a much better financial position later on. There are also multiple ways that you can get started.
Start with the “Cookie Jar” Method
Investing cash isn’t all that different from saving money when you think about it. If you want to invest money into your future, then you need to collect some first. One of the easiest ways to do this is to commit to putting a small amount of money aside each week. Remember, you don’t have to save thousands to have a good investment pot. Just $10 a week can be all it takes to leave you with a hefty fund to place into a good opportunity at the end of the year.
Either put your money in a pot, cookie jar, small safe, or envelope, and leave it untouched. If you’re concerned that you can’t just have cash laying around your home, you can use a savings account instead. Once you have a few hundred dollars, start looking for investment opportunities.
A great option for learning about investing is Motley Fool, it takes from start to finish on everything from selecting stocks, determining risk and getting the balance just right.
Enroll in Your Workplace Retirement Plan
If your budget is tight, the simple process of enrolling in an employer retirement plan can be enough to help you invest in your future. You’d be surprised at how low you can go with your investments too. Some employers will let you commit as little as 1% of your income – which is something you’re not likely to miss straight away.
As you work on your budget and find extra places where you can free up your money, you can think about making better investments into your long-term plan. There’s nothing to stop you from making a big increase if you get a bonus or promotion too.
Try Mutual Funds
Even if you’re new to the investing world, you’ve probably heard of mutual funds. Essentially, they’re investment securities that allow beginners to place their money into a selection of stocks and bonds using a single transaction. The biggest benefit of these funds is that they will enable you to diversify your portfolio with various investments at once.
The only problem is that many of the best mutual fund businesses require investors to give a minimum amount of money – usually starting at $500. If you don’t have that much cash to invest, then you can consider taking out a personal loan and gradually paying that back instead of saving money towards an investment. Alternatively, you can also look for mutual fund companies that will allow you to ignore the minimum entry fee in return for a monthly investment of a certain size.
Earn Interest with Treasury Securities
Otherwise known as savings bonds, treasury securities are easy enough to get your hands on. They might not make your ich overnight, but they give you an excellent place to store your money if you want to earn more interest than you can get from a typical bank account.
Treasury securities give you fixed-income assets with maturity terms of anywhere between thirty days and thirty years. There are options available to suit practically any budget. You can also try treasury inflated protection securities, which make periodic adjustments to your principal based on inflation.
Consider All Your Options
If you have zero cash to invest right now and you’re thinking of saving up to buy some stocks or assets later, it might be a good idea to consider a loan, even if you have bad credit. It’s possible to invest with the money you get from a personal loan, and for some people, this is more lucrative than waiting and saving.
After all, if you’re aware of a great opportunity that you can get into right now, the money you earn from your investment may help you to pay off your loan, build your portfolio and improve your credit history. Just remember to check your loan options carefully to keep interest rates low.
