Top 5 ways to start Investing With Little Money!!
Investments are in top priority charts for the majority of individuals for generating continuous cash flow and better financial security in the future. While for individuals with higher income, investment opportunities are huge, the ones with low or moderate income often set back due to insufficient funds.
But, the investment concept is not just limited to huge funds, there are multiple platforms and opportunities that help you opt for investment ideas even with little money. You just need to be strict with your financial budget and look for opportunities. The following are the 5 best investment opportunities for the individuals that allow them to step towards investment with a limited budget.
1. By P2P lending
Though P2P lendings are not low investment choices; with Fast invest, it is possible. You can start investing here with just 1 pound to accelerate cash flow. The website allows investors to deposit amounts and based on that suggests loans. After you choose the loan pack as an investor, the site assigns borrowers. Once the borrower takes the loan from you, the site starts increasing your invested amount with the applied interest rate of up to 14% till the payback period. It also comes with buyback guarantee if the borrower fails to return your loan in the payback period.
2. By Savings
The easiest way to start investing with little money is through savings. If you are interested in increasing your fund through investment, you need to compromise on the too much materialistic expenses of life and maintain a strict budget. You can start by depositing $10 to $15 weekly and store them in the online savings account that yields interest. There are many banks that increase the savings account deposits with 1.5 to 2.5% applied interest. This way yearly you can easily save more than $500 cutting off the useless expenses of life and then proceed towards investment ideas.
3. By Roboadvisors
Roboadvisors are automated digital platforms that assist you with low-budget investments. The platform runs on a complex algorithm to conduct a survey for you about your financial details, investment goals, risk tolerance and based on that will put your amount in different investments to yield maximum profit with low tax rates. You can start with Betternet roboadvisor platform as it lets you start with less than $100 for investment and charges 0.25% annually for normal plans and 0.40 for premium plans above $100,000. You can also go for Swell and MI Finance with minimum investment balance of $50 and $500 respectively.
4. By contributing in 401(k)
Investing in your employer-sponsored retirement plan will help you from the tax deductions for your contributions till retirement. If you have a tight budget, you can start by investing 1% of your salary and then increase it each year as you have increments or switch to new jobs with better pay range. There is a matching program where the amount employer chooses to deposit if matches with your deposit, it increases your percentage yield. You can start with a minimum contribution of $5 for the first year and keep increasing it in smaller proportions annually until you can afford the match score.
5. By Real estate crowdfunding
Real estate crowdfunding sites provide you the opportunity to invest in third-party properties. Fundrise is the best crowdfunding platform to go for that lets you start investing with only $500. With a year’s saving, you can start investing in this crowdfunding site and gain 8.7 to 12.4% annual returns based on your deposited amount. As soon as you deposit the fund, the site starts giving you plenty of real estate choices to invest as per your deposited amount and yields profit based on applied interests in rents or sold value of the property.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes.