Just because you don’t have a lot of extra money to spare doesn’t mean you can’t find a better place to put it than your savings account. Even if you only have $100 lying around, there are some smart and effective ways to invest it. It is said that the best way to eat an elephant is one bite at a time; well, the best way to save for your retirement is one dollar at a time, especially if all you have is a dollar.
Here are several ideas for investing your spare dollars.
Start an automatic investment account.
Many brokers provide the option of depositing as little as $50 a month in a brokerage account. The best part is that this is done automatically. You still have most of the investing options available to you that are available to a larger investor. Even a little bit each month can add up to a lot over time. It also permits you to learn the ins and outs of investing before you have a lot of money at risk.
Be sure to do your due diligence and look at the fees and the minimum deposit required before you sign up. Not all accounts are the same.
Invest in yourself.
We’re not talking about a nice dinner or a night on the town, but this investment idea is probably the most enjoyable for most folks. One of best way to invest in yourself is through education. Chosen wisely, this investment pays you back forever.
You could learn more about money and investments. Maybe you have an interest in real estate investing. Maybe you would be best served by spending the money on a gym membership or a trip to the dentist. A seminar or class might be just the ticket.
Think of 5 ways you could invest in yourself and list them in the comment section. Now, pick one and actually do it!
Pay down your debt.
Since the best investors in the world are thrilled to make a 15% annual return, any debt you’re carrying with a higher interest rate would be a good target for your extra cash. Take a look at your credit card debt and other outstanding loans. Paying on a debt with at 21% interest rate is like earning 21% on your money. You’re unlikely to get that kind of return in your automatic investment account.
If you have high interest debt, this may very well be the best place to start.
Start a business.
Maybe you could mow lawns on the weekend. All you would need is some advertising and a mower. Perhaps you’ve always wanted to start a blog and be a writer. Online businesses can be very inexpensive to start. Some online businesses can even be free to get off the ground.
There you have several ways to invest a small amount of money effectively. Consider which one makes the most sense for your situation. It is probably wisest to look at your high-interest debt first.
Do you have any other ideas for investing a small amount of money? Let’s hear them!
This guest blog is courtesy of Bay Bon Finance, if you’re interested in some start up capital, or funding new equipment, they can assist.