Top 5 Investments To Start With A Small Capital
In today's world, investing isn't just for
the wealthy. Anyone who has just a little bit of money can invest in
some sort of market. The key to investing is to choose and do so wisely.
Don't put your money in the first investment you come across. Be sure
the investments you make are safe and secure. Here are some of the most
common investments you can make with just a little bit of capital or
with just a little bit of money. Which will you choose? The number one
investment you can start with the smallest amount of capital is a
savings account. Check out the bank you are currently a member of, as
well as some of the other banks and credit unions in your area. Ask
about the various savings accounts they offer. Which one will bring you
the highest return? Some savings accounts require a minimum deposit to
open them and also to keep them open each month. You'll want to find
accounts that don't have monthly finance charges, as those will just
take away from the amount of money you end up gaining. You can also add
to this savings account on your own as well. Find ways to cut back on
bills each month. Don't go out to eat a couple times a week and take the
money you would have spent and deposit it into the savings account.
Lower the number of cable channels you get each month, then take the
difference between the two and put it into your account each month.
Before you know it, you'll have more money than you realize. Come up
with a goal for yourself. Do you want to have a certain amount of money
before Christmas or your birthday? Or perhaps you want to keep the
account until you have $100,000 to use toward the purchase of a house.
Maybe you want to keep adding to the account and use it in the future
for a child's college or your retirement. Just be sure to shop around
for the best benefits on the accounts before your make your decision.
If you have a minimum of $50 to invest, check out Direct Stock Purchase
Plans or DSPs. These plans do not involve brokers or their fees, you
deal directly with and purchase directly from the companies selling the
stock. While not all companies offer DSP plans, more than 1,000 do, and
you can find lists of them online. There are two ways to go about
purchasing stock from these companies. You can purchase stock as you
want, once then never again, or once in a while. The other way to
purchase stocks is to set up periodic purchasing. If you choose to set
up the latter, you must make sure you have the money available when you
plan to have the stocks purchased. This is also a good way to increase
your money without needing to worry about taking time out of a busy
schedule to purchase more stock. Another investment to make with a
small amount of capital is with mutual funds. It is possible to find
mutual funds that have low minimum purchase requirements, usually as
little as $25. A lot of times, these low purchase mutual funds will
require investors to set up the automatic withdraw of money from your
bank account with the intent of buying more stocks. These mutual funds
may also require you to purchase an initial stock investment. This can
usually be as little as $25 as well. If you have more money to
invest, about $500, you can look into mutual index funds. This type of
investment follows a market index like the S&P 500 (Standard &
Poor's 500). These types of funds are shown to have a large market
exposure, low operating costs, and a return of about 10% per year. After
your initial investment, you can add money as you wish without any
further charges. An IRA or an Individual Retirement Arrangement,
available only in the US, is one type of this investment. It's possible
to open an IRA with as little as $250 but other plans are available.
Along the same lines as investing your money in a savings account, you
have the option of a CD, or a certificate of deposit. The process with a
CD is you loan the bank a certain amount of money for a certain amount
of time. At the end of that set amount of time, the bank pays that money
back plus the amount of interest you've incurred. The length of time a
CD lasts is usually from a month to five years. During that time, the CD
earns interest. Usually, the larger the CD you initially purchase, the
more interest you'll get back. These are just five ways you can
invest with just a small amount of money. There are more ways you can
invest with a little bit more money. Your investment will get bigger the
more money you put into it. The important part, no matter how much
money you put into the investment, is make sure you use a reputable
company and if you doubt any transactions, check with an attorney.
