When most people think of the word ‘investing’, they think of business people wearing suits. They think of wall street and conjure up images of the madness that happens when there’s a big swing in the market.
Sound familiar? If so, it’s time to change that way of thinking as you don’t need to be the wolf of wall street to start investing. You don’t need to have a lot of money either as the key to building wealth is developing good habits and knowing how to manage your finances.
Let’s take a look at some smart investments that are great for individuals with a small budget.
A penny stock refers to a small company's stock that normally trades for less than $5 per share. Learning how to trade penny stocks is a wise move for those that want to get into trading but don’t have a large budget. You’ll also need to learn about positive and negative indicators and what factors can affect the price to fluctuate.
Sign Up for Your Employer’s Retirement Plan
If you are struggling financially, the simple step of signing up for your employer’s retirement plan may seem impossible. It doesn’t have to be that way. Employees can start to invest in an employer-sponsored retirement plan with amounts that are so small that they won’t be missed. Even contributing 1% of your salary, over time, can make a big difference to your financial future.
Consider Real Estate Crowd Funding
Gone are the days when you needed to have hundreds of thousands of dollars to start investing in real estate. Real estate crowd funding is the best way to get a foot on the property ladder if you’re tight on money. Now, you can give your money to a crowd funding company who will invest your cash into a series of real estate projects for you. And, better still, you can reap the rewards of owning real estate without having to worry about the usual stress and fees that come with owning a property.
Get an Automatic Savings Plan
An automatic savings plan is a type of personal savings system where a fixed sum of money will be automatically deposited to your account at specified intervals. Most banks will set this up for you so make some enquires and get on your way to creating a nest egg that you can fall back on in emergency situations.
Invest in Precious Metals
Precious metals like silver and gold hold their value as they’re physical, tangible assets. The downside to buying precious metals is you won’t see any dividends – you’ll own a piece of metal that you can hide away and hopefully sell it one day for more than you bought it for. But the good news is that you don’t need to have a lot of money to start investing in gold and other precious metals. Forget about the gold bars that we see in movies and think more about coins and how much value they offer.
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