Top 3 Best Ways to Invest Small Amounts of Money

A lot of people think that the world of investment is just for businessmen with classy suits and big suitcases. Let me tell you, it’s not. You can easily make some extra cash from your own chair, in your pj’s, while having a sip of your evening tea. The trick to good wealth is to develop good financial habits, which can be translated into smartly investing small amounts of money, consequently leading to big rewards. It doesn’t require thousands of dollars – in reality, it just takes you to get started with wiser decisions.

Let me show how easy it is, with these 3 simple ways:

1.  Leveraged Investments on CFDs

What is leverage, you ask. Well, it’s a facility that allows you to get much more exposure to the specific market you’re trading, for example – CFDs trading, than the amount you deposit to open the trade. Leveraging products like CFDs is an investment strategy that allows you to take advantage of financial markets with smaller capital, known as margin. Basically, you’re taking down a fraction of the full value of your trade, and the one that provides it loads you the rest.

Let’s try to simplify it: for example, Stock A currently quotes a price of $3 and you intend to buy 5.000 contracts of that stock using a CFD at the ask of the initial price ($3). Assuming that the person who owns the CFD sets it at a stock margin of 10%, your initial margin will be 10% x $3 x 5000, which is – $1,500. Using normal stocks on the cash market, you would be required to put up $3 x 5000, which would end up being $15,000.

So, in the CFDs situation, you have leveraged 10 times. This effectively frees up your capital for other investments and lowers the risk of a bad loss. If it still seems a bit confusing, don’t worry, as there are numerous trading platforms that can give you excellent tips, great resources, and even “fake money” to practice. Go to BestStockTradingPlatforms.com if you want to find out more about them.

Buying Domain Names

If you’re not really interested in the stock market, or if you’re simply looking for another way to make money with a blog or a website, buying domain names might be a great option. Purchasing a domain name can have a serious impact on making a brand, or you can even do some affiliate marketing. If you buy a popular domain and start selling your products on that website, you can get more sales, a better profit, and probably the major benefit – you can make your brand even more popular.

Furthermore, you can also become a domain broker – people who buy domains and sell them to other people who want to make their websites or brands more known.

For that, you’ll need an ICANN, an accredited registrar like Hostinger, for example. It’s a user domain checker to find unique domains on vacancy, which will give you a list of available options that you can register.

Consider Low-Initial-Investment Mutual Funds

These are pretty much investment securities that allow you to invest in a portfolio of stocks and bonds with a single minimal transaction. They are usually very similar to mutual funds and ETF IRA accounts. You can try out Dreyfus, Transamerica, and T. Rowe Price, as they are the most popular companies that invest on mutual funds.

If you’re able to do it through payroll savings, it ends up being even more convenient. What does that mean? It means you can easily set up an automatic deposit through your payroll, in the same way that you would do with an employer-sponsored retirement plan.

Final Considerations

As you can see, there are several options you can take into consideration in order to make some extra money. With the advances in technology and the boom of the Internet, it’s easier than ever to start your own home-based business with a simple click.

Nowadays, a little investment can turn out to be a great reward! Even though there are many online and app-based platforms making it easier than ever, you should always make sure you learn everything you need to know before making a decision. Take some time to investigate and go deep into the business before you start investing. Remember that every one of these options that we’ve shown you comes with a lot of pros and cons, so analyze each one of them rigorously before taking a stand. Besides that, you just needed a little push to get you started, and hopefully, we have accomplished that. Have fun and go make some money!

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