You need money to make money and there’s no greater truth than this in the monetary world. While some might not agree with what I’ve started here, most experienced traders will. But does that mean, if you don’t have the money you stay poor? Of course not – it means you start small and then go big!
However, successful investors are both small and big – and it is the best investment idea that differentiates between trading success and failure. Here are some great investment ideas if you’re starting small, with dreams of making it big, one day:
1. Invest tax refund
If it gets really difficult for you to save money throughout the rest of the year, we suggest that you invest the tax refund you receive at the end of the year in other meaningful investments. That is a good way to have extra capital for savings, as well as have the amount in bulk. And whatever investment you are doing, you must try your best to lessen the fees associated with that investment.
2. Invest in DRPs
A dividend reinvestment plan, or DRP, is a way that allows you to invest in stocks of companies, without the presence or intervention of a broker. You will be able to participate in these programs, as long as you have bought one share and isn’t that great? Well, there’s more. You can practice dollar-cost averaging, where you invest a little sum like $25 every month – the benefit is it is not a big amount, and you keep getting steady returns. This is a means of long-term investing that ensures you enjoy profits, and there are other benefits to this scheme too, like, the company dividends are reinvested for your sake, and that means company earns are divided among stockholders who get to buy more stocks with it – or use the capital in ways they deem fit. Besides, DRIPs usually have no fees associated with it so you’re saving further and spending even less.
3. Invest in individual stocks
This can never backfire. Individual stocks can be bought at very low prices – and a number of shares can make you a small owner of the company. You could also buy fractional shares of companies, and choose from a selection of 70 companies. Now, trading is difficult – and there is no denying that. If you’re a newbie, you would lose way more money than you would make. While some losses are inevitable, they are not desired. With technology today, you can say goodbye to the woes of trading and let the right folks help you. With proper help, you know that you can make a difference and be on an upward curve of trading. Why not switch to something that gives you an immediate edge over other traders in the market? Numerous websites have the perfect algorithms to help you win – besides, if you want to learn, they have the resources to help you with that too!
4. Invest in mutual funds
Mutual funds need a very small investment at the initial stage. Do a quick search at the best websites and know which mutual funds you can begin with. Mutual funds are a very good way to invest for someone who has started investing and is new to the world of investing – it is a good way to learn about the market, and the knickknacks as well. But while you’re investing in mutual funds, remember to diversify your portfolio because investing in one stock is a bad idea, for if it falls, your entire investing empire falls and your capital is doomed. Different stocks perform differently, in close relation to the market changes – and hence, you should invest in a number of varied stocks from different sectors so that you’re in the game for the long-term, and not the short-term basis.
5. Start a small business
This doesn’t sound like the best investment plan you had in mind when you opened the article, did it? But well, it is a great way to have a side income initially and then make profits. Offer everyday services and you would be amazed at how many takers you’ll have – and you can soon multiply the number of employees and go full-fledged into the start-up race. Invest small, and start small, and keep putting in the consistent effort – and you will see the results. Once you publish a few fliers and have some business cards ready, you would make way more than your initial investment – and even if your business is having a downward curve at times, the trick is to hold on, because small businesses start taking up after 3 months of their inception – studies have shown. So, don’t be a quitter, because your mama sure didn’t raise you to be one!