You don’t have to be very wealthy at all to start investing. You can invest with little money – there are always opportunities out there. The most important thing is to be as responsible as you can with your money and where you choose to put it. Take the time to learn about good small investment ideas and select two or three that would be a good match for you.
Before making any investments, no matter how small, you must first set up an emergency fund if you haven’t yet done so. You will only be setting yourself up for failure if you try investing without having an emergency fund. This fund will ideally be through a savings builder account with a high APY &. Check with online banks to see which ones have the best savings offerings.
As you get these emergency savings accounts built up, you can begin researching small but smart investment strategies.
Here are a few good small investment ideas to think about:
Real estate crowdfunding
You can invest in real estate for as little as $500 – $1,000. There is no need to buy any property or house to fix up and flip. The crowdfunding platform allows you to team up with other investors, pool your money, purchase some real estate in a profitable area, and become a partial owner. Depending on the property type, you could be a partial owner of anything from an urban development project to farmland.
US Treasury Security
While not the biggest moneymaker, this is a stable way to put away some money for a while and earn some decent interest. Purchase these through the US Treasury’s savings bond portal online, referred to as Treasury Direct. There are fixed-rate bonds with maturity periods that last from 30 days to 30 years, and they can cost as low as $100.
Of the good small investment ideas, you have to be careful with this one. It can be very beneficial and profitable if you choose the right company or entrepreneur to lend money. If you aren’t wise with your decision, though, you could easily wind up losing money. One way to help mitigate the risks is to lend them money in small installments instead of all $1,000 at once.
These types of investments you need to make through either a broker or a bank. They are investment tools that allow you to put money in a portfolio of bonds and stocks, which is a great way to diversify your investments. Opt for mutual funds if you don’t have much market experience and lack time to independently monitor stock market conditions.
Some of these good small investment ideas might be for you, and some might not be. If you’re looking for more, sign up for a newsletter like Motley Fool, where you’ll receive all of the latest news, industry conditions, profitable ideas, recommendations, etc.