Pinching pennies is never a bad idea because everyone needs to be smart about the way they spend their hard-earned money. There is no shame in using coupon and online promo codes to save as much as possible for each transaction you make. If money grew on trees, then you can afford to be flippant. But doing these things and living within your means are both great lifestyle decisions because they allow you to have more funds which you can use to generate substantial wealth. Here’s how you can invest that money you so painstakingly saved:
Invest In Stocks
A lot of you put off investing in stocks because you have this misconception that a lot of money is needed. In fact, nothing can be further from the truth, as there is a long list of best stocks under $5 available out there for you. Investing small has the capability of reaping you big rewards if you know where to put the money. The primary way to build wealth is actually developing good habits such as regularly putting away money, no matter how small the amount, for savings and investment. If you make it a habit to begin investing whatever you have, you will come out in a much more stable and strong financial standing in the future.
Save Through Your 401(k) Plan
Choosing to invest in your company’s 401(k) plan is another smart move. Take advantage of any price matching benefits that your employer offers. This means that they will match the number of contributions that you decide to make. Even if you choose to invest only 2% of your salary, this is still a great choice because the money being invested is based on your pre-tax dollars, not to mention the tax break you will receive. That amount in itself is considerable savings. When you get an increase in your salary, you can choose to up the percentage of the contribution, so you won’t feel a big change. The tax break and investment component, coupled with the price-matching, means that saving through your 401(k) retirement plan is a great idea.
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Consider Treasury Securities
Small investors should never discount the value of investing in US treasury securities. Doing so may not turn you into a millionaire instantly, but it is an excellent avenue to park your money in. You can earn some interest up until the time comes when you are ready to play it hard and risk higher. These are also known as treasury bonds or savings bonds and they are easy to buy through the US Treasury’s portal called the Treasury Direct.
In this site, you can choose to purchase fixed-income US government securities with terms that mature from 1 month to 30 years. Fret not, for you don’t have to invest big. In fact, you can invest in denominations as low as $100. For an even smarter move, you can use the site to purchase Treasury Inflation Protected Securities or TIPS. Aside from paying you interest, this protects you from inflation. TIPS will make periodic principal modifications to factor in inflation changes based on the consumer price index.
Don’t Discount the Value of Mutual Funds
Mutual funds are another way to invest your money because it allows you to diversify your investment in a portfolio of stocks and bonds within a single transaction. The only downside of the different mutual fund companies out there is that they require an initial minimum investment of five hundred dollars. This may be a deterrent for you if you are new to investing, with only a minimal amount of money to spend. However, it is critical to note that some companies do offer to waive the minimum amount if you agree to automatically invest around fifty dollars every month for at least one year.
Worthy Bonds Are a Worthy Investment
All you need is ten bucks to start investing in Worthy Bonds. These are fixed interest bonds that fund the loans for US businesses that are worthy of giving credit to. These bonds have a three-year term, with interest paid weekly. The best part is your money can be withdrawn at any given time without any stiff penalties. You can even choose to purchase ten-dollar bonds if you feel like it. Worthy takes the money that you use to buy the bonds, and they invest in companies with more than 5% returns. This is a winning situation because it is fixed-rate. It makes sure there are no unexpected and unpalatable surprises.
Now, there are many ways for you to invest with very little money. You can even choose to do things online. Whatever you do, just make it a habit to save and invest. Start somewhere and it will get easier as the days go by.
