It takes money to make money. This is absolutely true. Haven’t you ever wondered why the rich always seem to get richer? It’s not because they’re not paying enough in taxes or doing things of that nature, it’s because they’re using their money to make money. The easiest and most effective way to make money is to make your money make money. You barely have to do anything but keep an eye on it or hire someone to keep an eye on it for you. Money makes money when you know how and where to invest it. We cannot tell you that you can invest your money and make money in sums you could never even imagine. We just don’t know what might happen to you. We don’t know if you’re going to get rich, lose money or break even. We are not experts and the market changes all the time. What we do know, however, is that your money won’t make money if you don’t try to invest it. And even if you don’t have a lot of extra money, you still have a little. And we can help you to invest that little bit so that you have a little bit more, and a little bit more. Here are 10 very simple ways to invest a little bit of money that will pay off in a big way.
You have to find money to invest. Many people say they don’t have money to invest, but they still find money to spend on McDonalds for lunch or Starbucks for coffee. What if you took that money and invested it? That could be $50 a month. That’s not a lot, but it is $600 per year that you can use to invest. Star small by investing in old coins such as the byzantine coins, it would be a lot more money over the course of several years.
Invest in Emergencies
The most important thing you can do to invest a small amount of money is invest in an emergency fund. It’s not your typical investment, and it’s not going to help your money make money. But it is going to prevent you from going into debt if you have an emergency. The biggest financial issue the paycheck to paycheck crowd has is the unexpected expense. The new tires, the car repair; the plumbing issues. If you have just $1000 in your savings account for just this purpose, you can save a lot of money and have a lot more money.
Invest in Your Debts
Another big investment is your debts. The faster you pay them off, the more money you will have to invest. It makes little sense to invest when you owe money to someone else. You’re paying interest that is going to eat you alive. Go ahead and invest in your financial future by paying off your debts. It’s the best first move to make.
Invest in Your Home
You can make more money and save more money making smart investments in your home. For example, you can go ahead and add up some of your monthly expenses to see where you could save. For instance, upgrading to a more energy efficient heating and ac unit installation can help reduce your energy usage. If you decide to invest in a new air conditioning installation, be sure to have it regularly serviced by an air conditioning technician to maintain its efficiency. Make small investments around the house that will add up significantly in the long run.
Invest in Your Education
Your future depends on your education and experience. If you can take a class that will provide you with a certification that will garner a bigger income, do it. If you can take three or four classes to finish up a degree you long ago abandoned, do it. You can invest in your education to make more money, and that’s going to help you make a big change in your life.
Max Out Your Retirement Savings
If you have a retirement savings account, especially through your job and your employer matches, go ahead and max that out. It’s not always a big investment, but it’s a big change in your financial future. You should absolutely be taking advantage of the fact that you can get free money from someone else. If you have an employer contribution match program, take advantage of it. Even just adding a bit more to your own investment makes a big difference since your employer will then add more to theirs.
Direct Stock Purchase Plans
These are plans that allow you to purchase your own stocks at your own pace. There is no middleman or investment manager that’s going to help you with what you are trying to do. Your job is going to be to make sure that you can manage your investments since no one else is going to do it for you, but that is not all that difficult if you have the knowledge and the motivation to keep this up.
Certificates of Deposit
These are accounts that allow you to make a deposit for a set amount of time. These deposits then earn you money so that you can make your future investments even bigger. These can be short term investments or long term investments. They will earn interest and continue to grow as long as you leave the accounts alone and manage them without taking money out at any time. Especially since there are fees associated with these accounts.
Interest Bearing Accounts
Savings is too good to pass up. Many people forget that this is a big investment all on its own. This kind of savings might not seem like the big investment that things like stocks and bonds can add up to, but saving at even a small interest rate is really going to add up a lot over the years. You can save more than you actually saved this way, even if your interest rate is very low. It’s always a good idea to save, even if it does not seem like very much savings.
Invest in Real Estate
Real estate is almost always a good way to invest. We’re talking about small investments here, so you would have to find something that’s not expensive. For example, a piece of land would be a great investment if you can find it for next to nothing. My husband and I purchased a quarter acre of property last year for $3500 and it’s currently worth more than $6000 and the value is rising every day. We were initially going to build on it, but decided to keep it when we bought our dream house, but we’ve already made money on it and we haven’t done anything but put $3500 into it.
Photo by Christopher Furlong/Getty Images