Everybody wants to save – we realize that a penny saved now will make a huge difference to our loves in the future. But the problem is that we are continually exposed to a media and marketers that spread the message that without a healthy nest egg there seems to little no reason to save – it is basically a waste of time and effort – rather spend that money today and enjoy the thrill of instant gratification. It is after all part and parcel of the modern consumer mindset.
However, is this mindset one that is the inevitable outcome of not having large amounts of money to invest? the answer is most assuredly no. You can make savvy investments of $500 as a lump sum or split that into smaller installments and still make sure that you are growing that nest egg.
Here are some great ideas to make even modest sums of money work for you.
The Savings Account.
OK – putting $50 into a savings account each month is not going to contribute to the downpayment of that tropical island that you have an eye on – but you will be surprised how quickly that investment can grow. The key to successful saving is discipline. Leave the money alone and you will have an investment that beats inflation (usually) and is just about as safe as can be. It also helps you accumulate larger lump sums to take that next investment decision.
Mutual Funds and ETFs.
Some mutual Funds require minimum investments that run into the thousands of dollars – but there are some respected financial vehicles that allow minimum investments as low as $500. If you could upsize that investment to $1,000 you would be able to invest in several funds and reduce your risk profile.
It may come as something of a surprise – but there are online investment firms that will allow you to invest for as little as $100 a month if you are prepared to do a direct or automatic deposit. This gives you the freedom to explore a wide variety of investment options – but try and get professional advice before you commit to a substantial position.
Flip for Funds.
It’s not necessary to invest in property to enjoy the advantages of flipping an asset. Craigslist is a wonderful place to find furniture for instance. Learn some basic refurbishing skills or keep a look out for those quality bargains where people want to get rid of furniture that is taking up space. learn a bit about classic or antique furniture in order to spot a bargain. remember – you’ll need storage space.
Invest in Yourself.
there is an old saying that one of the best investments you can ever make is in yourself. So do the research and leverage your unique talents. Use that $500 to get the right materials and equipment. Arts and crafts, writing, real estate sales – the list is almost never ending. Do the research and become the master of your own destiny.
There are numerous companies on the Internet that arrange funding for borrowers – with funds sourced from investors. The returns can be very attractive. But be warned – do your due diligence and make sure that you are going to be doing business with a company that has a solid reputation.
Get OUt of the Debt Trap.
One of the best investments that you can make is to deal with the debt that you are carrying. Make a plan with lenders and free up some of your finances to engage in investment activity. Pay off those credit cards first – you can be paying interest of around 20% – and that is an enormous financial burden – and a roadblock to your investment activity.
Invest in Coins.
It is not as expensive as you might think to invest in Sterling Silver coins. They are issued by governments all over the world and retain their value based on both silver content and collectability. Not only is collecting these coins a great hobby, but also a nice hedge against inflation.
So, a $500 budget should set you on a path to great investment habits – make the right decision today.