5 Ways to Start Investing with Little Money

Investing small amounts can lead to big rewards. You may be a student and have little money to invest right now and you think that you can’t invest. Maybe you believe you would need a lot of money, maybe thousands of dollars to start investing.

As you will read further on this article, you can start investing for as little as 50€ per month. Build wealthy good habits, put money away every month and follow these 5 easy tips to start earning some revenue in no time:

1 – Saving Account

As easy as it may sound, saving money is the first step you need to acquire before any investment. In order to invest, you can start by putting away just 10€ per week. Over the course of a year that’s over 500€. Depending on where you live, banks may offer you around 1,5/2,5% APY on their online saving accounts.

Or maybe try putting 10€ into an envelope, small safe or the old cookie jar. Getting into this habit is required, spend less than what you earn and always ponder each purchase thoughtfully. The trick here is to clearly separate your saving money from your checking account, and you’ll have a large enough stash in no time. Avoid a McDonald’s meal and eat some food at home or maybe go for a walk instead of constantly using your car. Healthy habits can lead to wealthy savings account.

2 – Easy and Automated Stock Market Trading

A bit like Roboadvisors, created to make investing as simple and accessible as possible and no prior investment experience is required with an easy set-up, you let their automated intelligence track your investments in the background, and pay lower fees in the process. A newer and better option opinion is eToro copy interface.

eToro is a social trading and multi asset brokerage company. Although fees are relatively high, it’s the only easy to use and appealing interface stock exchange application you should use if you want to copy other experienced traders.

Check some of them and don’t try to copy high risk traders with a 5 or upper rating, rather choose those with a 2 or 3 risk rating and show consistent earnings monthly or yearly. Remember this is totally passive income, do not try and risk more than you can, be patient and money should come at 5/6% each year.

3 – Treasury Securities

When it comes to conservative investments, nothing says safety more like Treasury securities. These instruments have stood for decades and still remain safe to invest in the turbulence of the investment markets. The last line of defense against any possible loss of principal.

You’ll never get rich with these securities, but it is an excellent place to park your money, earn some interest, until you are ready to go into higher risk or higher return investments. If you’re a US citizen, you can buy fixed-income US government securities with maturities of anywhere from 30 days to 30 years in denominations as low as $100.

4 – Mutual Fund

A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities such as stocks, bonds, and other assets. Mutual funds are operated by professional money managers, who allocate the fund’s assets and attempt to produce capital gains.

In other words, mutual funds are a rather versatile investment option. They charge annual fees and in some cases commissions which affect your overall return rate. The user creates his own portfolio and it’s advised to expand and fraction the investment as much as possible.

5 – Real Estate

            More often than not, Real Estate Investment Trust will lease space and collect rent on the own properties and later distributes the income to shareholders. Owning your own property collection is a safe way for an easy and periodic monthly income. You surely won’t be able to start Real Estate passive income with low money, but it should be a personal objective as it is an easy to generate steady income while managing your properties.

According to U. S. Census Bureau data, sales prices of new homes were consistently increasing in value, before dipping during the financial crisis. Thankfully, sales prices have since resumed their ascent, even surpassing pre-crisis levels. As so, rental income won’t be landlord’s sole focus and with a variety of possible investments in the Real Estate area, you should find what suits you best to your profile and capital.

There are much more ways to start investing with little money. Being aware of the horse racing schedule and placing your bets can be another way, although gambling is always an unpredictable path.

Nonetheless, you should always start with the right mentality and saving funds regularly. You won’t be making loads of money and it’s not your primary focus, however, as you know, money makes money, and with higher amounts, 5% may be more than what you perceive.