In 2019, only 55% of Americans invested their money into the stock market.
Investing money can help you retire at a much earlier age. It is important to invest some money in the future so that you don’t have to work for the rest of your life.
If you are new to investing, there are many ways that you can grow your money and learn how to along the way.
Continue reading to discover some of the best small investment ideas when you are starting!
1. Retirement Plan
Setting up a 401(k) or retirement plan is one of the best small investment ideas to do.
If you aren’t planning to work for the rest of your life, you will need to set up some sort of retirement savings account. Many people set up a 401(k) with jobs so that they can put money away for the future and the company matches the amount you put in.
Even if you can’t afford to invest half of your paycheck into your retirement plan, you can customize the percent of your pay that you want to invest. Talk to HR at your job to get yours set up if you haven’t already done so!
2. Investment Phone Apps
If you are new to investing and want to start with something easy, an investment app is a good route.
The application Stash is perfect for new investors and can help guide you along the way. You can learn how to build portfolios from EFTs and stocks. Stash is also great for beginners that don’t have a lot of money to invest.
The Stash app has a $5 minimum balance for their accounts. Apps like this are user-friendly and typically don’t require large investments. You can start small and work your way up with these apps.
3. Penny Stocks
Penny stocks are the ideal way to invest if you only want to spend $5 or less on each share.
Depending on the brokers, you can invest in stocks for cheap prices and gradually see your account increase. You can easily learn penny stocks to make the most out of your investment.
If you are a beginner, penny stocks are perfect because they aren’t a large risk. Unfortunately, since they aren’t, it may take longer to make money and accumulate successful investments. That being said, it is still an excellent way to learn what you are doing and how to make good investments.
4. Robot Advisor
Sometimes you want to invest but you don’t have enough time or money to find the perfect fit.
Getting a Robo-advisor for investing is perfect for those new to investing and short on time. Computer algorithms are used to invest small percentages of your money and you can watch it grow.
Although there isn’t much work that is required from you, it is still important to monitor your account and watch where your money is going. Robo-advisors can also help you learn about investing along the way to prepare for bigger opportunities!
5. Exchange-Traded Funds
Exchange-traded funds (ETFs) track a market index and invest your money.
ETFs don’t require you to put down large sums of money either, making them perfect for beginners. Exchange-traded funds are bought throughout each day and traded. Investors buy them and share a price that you can invest in.
These are traded much like stocks and you may need a broker. If you enjoy investing your money this way, you can set up automatic investments for future dates.
6. Old School Approach
If you are looking for a much simpler way of investing your money, you can do so with a jar.
Putting away even small amounts of money each week can quickly add up and give you a cushion of money for the future. Even if you were to just put $10 away each week, you will have more than $500 by the end of the year.
Piggybanks, envelopes, and safes are excellent places to put your money and keep it safe. An advantage of putting money away like this is that you will learn to learn below your means, making saving easier.
7. Real Estate
Even if you don’t have a lot of money to invest, there are still ways that you can in the real estate industry.
Real estate crowdfunding is a great way to gather funds and help from your community. You can use this money to open an Airbnb or rent out your space. More and more people are investing their money into a second home so that they can bring in money all year long.
Renting apps make it easy for people to advertise their homes and to search for places to stay. You can also invest in the real estate market with commercial locations!
Small Investment Ideas That Add up
If you are looking to make a little extra money on the side of your career, you may want to consider trying one of these small investment ideas.
Even if you don’t have a ton of extra cash saved up you can still invest your money. Penny stocks and Robo-advisors don’t cost much money and can have major rewards.
Investing in real estate is a fun way to make money and build a small business. If you don’t want to commit that much time you can simply put money away in an envelope or a retirement plan.
Don’t be afraid to invest your money, especially when it is small amounts. You can learn from each investment you make and increase your profit.
Be sure to check out our blog for more articles on personal finance and how to make money!