Wassana
Investing is not a preserve for the rich only, contrary to popular belief. Anyone in whatever socio-economic strata with a sound investment plan can get a good ROI in the long run. Even with less than $500, you can go for an investment plan that requires a few hundred dollars, bearing in mind that there isn’t a single best way to invest.
If you have been planning to invest on a budget, here are some five ways that you can start your investment journey.
1. Have a simple savings plan
Saving and investing go hand in hand. Even before you consider investing, you must have some savings stashed somewhere, and it doesn’t have to be a grant savings plan.
For starters, you can start by saving as little as $10 weekly, which could easily translate into just over $500 in a year. While it might sound simplistic, it is a sure-fire way of instilling in you some sense of responsibility, and a good way of cultivating financial healthiness.
Saving in an envelope, a shoebox, a safe or even in a cookie jar is a great way of doing this if you are not ready to start saving in an online savings account. Remember, the key thing here is to save as little as you can consistently. You can then increase the amounts as you get more comfortable with the habit over time. Once you have saved enough, you can then move it into an actual investment plan.
2. Consider investing in DRIPs
You can consider a dividend reinvestment plan (DRIP). This is simply a way through which investors can buy stocks from companies directly without going through brokers. It is a great way of investing as it allows you to trade as long as you can be able to afford at least one share. Most of these plans do not charge any fees, and those that do will require very small fees, making it an affordable plan. Furthermore, the dividends that the company pays you are reinvested in your holding, allowing you to purchase more stock.
3. Go for individual stocks
Investing in individual stocks is another great way of having an affordable investment plan. Individual stocks can be purchased for as little as $5 to $10 per trade from brokerage firms. If for instance, you have $500 to invest, you can get a good number of stocks from notable companies. If a stock is trading at $25 per share, you could get as much as 20 shares, making you a small owner in that given company.
4. Buy a house ticket
With some little savings, you can enter into any of the numerous lotteries that would enable you to either win a house or any other grand prizes. This is an easy way of investing, as it allows you to invest just a little of what you already have and stand a chance of ripping big on your investment. There are many such organisations, like yourtown, that enters you into draws such as this yourtown prize home that would enable you to win a house. You can as well win a car on the same platform.
5. Start a small business
This is yet another great way of investing as it revolves around investing in your ideas to generate profits. There are so many ways in which you can turn your ideas into reality by starting a small business to make money. Further, you can start by having a blog that requires little to no money.
Some ideas for a small business that isn’t capital intensive could be starting a lawn maintenance or even dog walking services, that would only require you to have some business cards or simple fliers.
In conclusion, regardless of how much you have, you can invest it into some small ideas that can eventually make you good profits in the long run. The critical thing is to start now for you to increase your portfolio and savings after a while.
