5 Ways To Invest with Little Money in 2021

Start investing in 2021 | Introduction and Tips for beginners 

make money online

Clearly, 2021 is another unpredictable year for investors and traders. Bitcoin and Cryptocurrency markets volatility is nothing to compare with 2020. However, investing even very small amounts can reap big rewards when you have the proper mindset and strategy. That's why, I'll be giving you in this article: 5 ultimate ways to make safe Investments with High Returns.

Broker agents monitoring stocks screens

For many people, “investing” involves images of agents in suits, monitoring the exchange of millions of dollars on a stock ticker. Therefore, I am here to tell you: You don’t need to be the Wolf of Wall Street to move your money before 2022. It’s okay if you’re a beginner. Even if you only have a few dollars to spare, your money will grow with compound interest.

The key to successful investments is developing good habits—like regularly saving money away every month. Swap out the barista-made cappuccinos for coffee at home and you could already be saving more than $50 a month. Once you have a little money to play with, you can start to invest. In 2021, you can get a date, a ride or a pizza with the swipe of a smartphone screen. Investing is no different. If you can automate your bills, why not your investments? It’s just as easy!

With a robot-advisor or an online savings account, you can make your money work while you play. With a stock trading app, you can play with a little money and learn valuable investing lessons at the same time.  Just like Halloween costumes, investing comes in many different forms. It shouldn’t be a scary word. With so many different options, investing for beginners is simpler and more straightforward than ever before. Soon you’ll see how addictive growing your money can be. Here are five simple ways to get there:



1| Start Saving Some Money To Invest

cookie jar


Saving and investing money are closely connected. In order to invest money, you first need to save some up. In fact, that will take too much less time than you think. If you’ve never been a saver, you can start doing it in very small steps. For example, you can start by putting away just $10 per week. That may not seem like a lot, but over the course of a year, it comes to over $500. Try putting $10 into a small safe, or even that legendary bank of first resort, "The Cookie Jar". Though this may sound silly, it’s often a necessary first step. Get yourself into the habit of living on a little bit less than you earn, and stash the savings away in a safe place.
The electronic equivalent of the cookie jar is the Online Savings Account, which’s separate from your checking account. The advantage of the saving account is that you'll not only save money, but also get some interests from your savings. 



One of the best Saving Account providers (which I personally recommend) is Capitalflash. (read detailed review) You can open an account in 5 min, deposit some money and enjoy a 7% weekly growth of your saved assets. Then when the stash is large enough, you can take it out and move it into some actual investment vehicles.
online saving account

 The service is not linked to your debit card, but you can withdraw your funds in few hours if you need it. 



Let a Robo-Advisor Invest at Your Behalf!

bitcoin trading bot

Robo-advisors entered the investing scene about a decade ago. Since, they have made investing dramatically easier and accessible for everyone! You won’t need any prior investing skills or trading experience if you're willing to use a robo-advisor. This smart technology take all of the guesswork out of investing.
Robo-advisors work by asking a few simple questions to determine your goal and risk tolerance. Then, the program invests your money in a highly-diversified low-cost portfolio of stocks and bonds. Finally, Robo advisors will use their algorithms to continually re-balance your portfolio and optimize it for taxes.

Trading Algorithm

There’s no easier way to get started in long-term investing. However, while opening an Online Saving Account is totally free, Robo-advisor's main downside is it’s cost. Don't be afraid, as it won't cost you more than $500 to start investing. However, the program charges an annual fee equal to a small percentage of your balance. The industry average is about 0.25%. So, if you invest $10,000, you’ll pay $25 a year. That’s not a lot of money, but it begins to add up if you amass hundreds of thousands of dollars.

3| Start Investing in Stock Market ASAP!



In the past, cost was the barrier preventing people with little money to start investing in Stocks: It takes money to make money, right?

Not anymore!! The internet has made trading easy and accessible for everyone and every budget. That means you can invest as few as $10 bucks to familiarize yourself with investing before making a bigger commitment. It’s a great way to learn about investing while putting very little money at risk.

Today, there are increasing numbers of options that have swung open doors to a new generation of investors – letting you get started with as little as $1 and charges no trade commissions.

Compared to the past, stockbrokers charged commissions of several dollars each time you bought or sold stocks. That made it cost-prohibitive to invest in even a single stock with less than hundreds or thousands of dollars. In fact, $0 commissions across comp have been so successful they’ve disrupted the entire investing industry and forced all the major brokers – from ETrade to Fidelity – to follow suit and drop trading commissions.




Plus the ability to invest in companies with fractional/partial shares is a complete game-changer with investing. With fractional shares, it means you can diversify your portfolio even more while saving money. Instead of investing in a full share, you can buy a fraction of a share. If you want to invest in a high-priced stock like Apple, for instance, you can do so for a few dollars instead of shelling out the price for one full share, which, as I write this, is around $370.


4| Dip Your Toe in The Real Estate Market

invest in real estate


Believe it or not, you NO LONGER need a lot of money (or even good credit) to invest in Real Estate! A new category of investment known familiarly as “Real Estate Crowdfunding” makes it possible to own fractional shares of large commercial properties without the headache of being a landlord.

Crowdfunded Real Estate Investments require larger minimum investments than robo-advisors (for instance, you'll need $5,000 instead of $500). They’re also riskier investments because you’ll be putting that entire $5,000 into one property rather than a diversified portfolio of hundreds of individual investments.

The Upside, however, is owning a piece of a real physical asset that’s not necessarily correlated with the stock market.

As with robo-advisors, investing in Real Estate via a Crowd-Funding Platform carries costs that you wouldn’t pay if you bought a building yourself. But here, the advantages are obvious: You share the cost and risk with other investors and you have no responsibility for maintaining the property (or even doing the paperwork to buy it!)

I think Real Estate Crowdfunding can be an intriguing way to learn about commercial real estate investing and also diversify your assets. I wouldn’t lay all of my money on these platforms, but they do make an intriguing alternative investment especially in these times of unprecedented market volatility and pitiful bond yields.


5| Play it Safe with Treasury Securities


cash bonds cookie jar

Not many small investors begin their investment journey with US Treasury securities, but you can. You’ll never get rich with these securities, but it is an extremely safe place to park your money and earn some interest until you are ready to go into higher risk/higher return investments.

Treasury securities, also known as savings bonds, are easy to buy through the US Treasury’s bond portal Treasury Direct. There you can buy fixed-income US government securities with maturities of anywhere from 30 days to 30 years in denominations as low as $100.

You can also use Treasury Direct to buy Treasury Inflation Protected Securities, or TIPS. These not only pay interest, but they also make periodic principal adjustments to account for inflation based on changes in the consumer price index.

And as is the case with mutual funds, you can also arrange to have your Treasury Direct account funded through payroll savings.

Unfortunately, the yields on treasuries have been getting closer and closer to 0% for a while now, and there’s no end in sight to their lackluster performance. This makes treasuries mostly a place to stash cash for safekeeping rather than a way to grow your money.

SUMMARY

There are plenty of ways to start investing with little money in 2021. Indeed, many online and app-based platforms are making it easier than ever. All you have to do is to start somewhere. Once you do, it will get easier as time goes on, and your future self will LOVE YOU for it.


Become A Successful Investor Today!

You can subscribe to my newsletter for no cost! I'll be sharing with you my Successful Online Investment Guides and Strategies totally free! You'll also receive Stocks, Crypto, HYIP and Forex Markets Research & Insights on a weekly basis. You may unsubscribe at anytime following the link in my Newsletter.


Post a Comment

0 Comments

Breaking