This article aims to provide useful advice on how to invest relatively small amounts of money and multiply that amount until you get to a substantial profit.
It is especially aimed at those people that think investing is only for those individuals that can invest thousands or hundreds of thousands to get an impressive return.
But, shocking as it may seem, you can start with a few hundred dollars or even under a hundred and learn how to do it in such a manner that it will amount to a great profit.
See | 7 Profitable Investment Ideas Other Than Stocks to Grow Your Wealth
Of course, this is one of the extremities of investing and for all future uses, a small investment should be defined as an amount larger than $100 but that doesn’t go over $1000.
So, without further ado, here are the 10 most efficient ways of investing such amounts for a nice profit.
10 Ways to Invest Small and Turn it Into Large Amounts of Money
#1. Bank Investments
Even though a bank investment is not the most exciting form of investing, since the profit you make is relatively small, this form of investing is preferred by many individuals simply because it poses a very low overall risk.
This makes bank investments the proper method for those that are aiming to steadily increase their balance in order to open up new ways of investing money for a more substantial and faster profit.
Also, without discriminating any age category, the bank investments are preferred by elderly persons that see the banks as trustworthy places to keep their funds in.
#2. Betterment
Betterment is a form of investing that specifically appeals to small investors. Everything starts with completing a questionnaire regarding your overall investment views and what’s your tolerance towards risk.
According to the choices you make in this questionnaire, you will be assigned a portfolio of several exchanged funds that best fit your needs.
One of the best things about Betterment is that it doesn’t have a minimum amount to start with and the fee on the account is around 0.35%.
#3. Lending Club
This online P2P lending platform allows borrowers to get loans whilst the investors provide the cash for an attractive interest rate. It’s not a rare sight to see double digits return rates and that’s what makes this platform so appealing to investors.
Also See | Emergency Funding Options for People with Poor Credit
You can give it a go with a minimum of $1000 and you can divide your investments in increments of $25 so that means you can have a portfolio of 40 different notes.
If you’re concerned about safety and a guarantee to recover your funds, you need to learn that the application works with escrow accounts, the payment being made with their own funds while the recovery of funds from the lenders is entirely their concern.
#4. Motif
If, for any reason you are looking for a different investment platform, Motif is most probably the way to go for you. The system behind Motif is not complicated at all as users can build their own or invest in mini-mutual funds that follow some fixed investment criteria.
The name for these mutual funds is ‘motifs’ and that gives the name for the entire platform as well.
If the definition is still a bit blurry for you and you’re looking for some clear examples, you can choose to invest in solar energy in Hawaii and there are hundreds of different motifs out there for you to invest on. The minimum amount to start with is $250 and it’s a very interactive experience to go through.
#5. Getting Rid of Debt
Indeed, this is not really a method of investment, however, you shouldn’t even think about investing your money if you have active debt. However, it can be viewed as an investment method if the debt you’re going to repay accumulates interest as time goes by.
More | Tips for Getting Out of Debt on a Limited Budget
Even though you’re not actually making more money, you’ll have less payments to make out of the money you gain, leaving you with the same type of increase that an actual investment will get. Especially considering that credit cards, as an example, can have a return rate as high as 25%.
#6. A Retirement Plan
No matter if we’re talking about an employer-sponsored retirement plan or another plan that you find interesting, investing your money in such a thing is a great idea and a good back-up plan at the same time.
Not only that with every paycheck you can decide what amount of cash goes towards the retirement plan, but it’s the type of investment that you can collect when most needed.
Related | Top 10 Pleasures of Early Retirement
Besides what you rightfully obtain from the state, you will have your own back-up money that come in great especially when it comes to traveling or taking care of your health when you reach an older age.
Another awesome aspect related to the investment in a retirement plan is that there’s no minimum or fixed monthly amount, you can contribute with a different amount each month and kick it off.
#7. Prosper
This investment method is quite similar to Lending Club which was covered above, however, there are some differences as well. They state that they can offer a 16% return rate on an annual basis, a percent that is more than appealing.
Even though it’s less safe than a bank investment, the 16% guaranteed by Prosper is a figure that the banks can’t even dream of.
Investors often face the dilemma of choosing between high returns and high risks. This is a common issue for any investor.
If you prefer conservative investing methods but are not willing to invest in banks, you can consider investing in Treasury securities. These are debt obligations issued by the Treasury Department of your state or a foreign state. You have the flexibility to choose a maturity date between 30 days to 30 years, and the minimum investment amount is $100.
Another investment option is to invest in your skills. Investing in yourself by supporting your passions or skills can provide a solid return in a short amount of time. It not only enhances your skill set but also prepares you for future challenges.
Starting your own business is also a great investment option. By investing in your own business, you can utilize your skills and passion to create a successful venture. This approach allows you to be your own boss, work towards your goals, and sustain a decent living.
In conclusion, there are various investment opportunities available to grow your income and secure a better future. By sharing your investment ideas and experiences, you can help others achieve their financial goals. The key is to grow together and build a brighter future. We hope you find the articles on eMoneyIndeed.com enjoyable and informative. Thank you for visiting our site!