The average money earner does not have a savings account, let alone look into investing. When asked if they invest or have an investment portfolio, most people will tell you that they don’t. When further asked why a high percentage will answer that they don’t believe they can afford it. Investing can be a great way to finance your future and your retirement. But due to lack of funds and fear of investing, many Americans never engage in investments. Here are six investments you can invest in for very little capital.
Savings Accounts
Most don’t think of having a savings account as an investment. However, most savings accounts these days have some interest attached. Whether you want to stay within the safety of actual savings, account through your bank with a smaller interest gain, if you want to do a savings account with more risk than higher returns, it’s important to have a savings account. The most important things you need to remember when considering a savings account is access and the amount of interest you can gain. You also want to consider the risks as you would with any investment.
Lending Clubs
Lending clubs are one of the best ways for people to get started in investing. Lending clubs are where your money is pulled together with other lenders. Those who need a loan will come to the lending platform and borrow from these lenders. In exchange for extending these loans, investors, a.k.a. lenders, will often get returns in the double digits. The buy-in to a loan can be as little as $25. Most lending clubs have an overall minimum buy-in. Generally, between $100 to $1,000, give or take. You then take that initial investment and make decisions on where you want to lend money.
Crowdfunding Real Estate
For those who do not have a lot of capital and want to invest in real estate, crowdfunding real estate investments are the way to go. You need very little capital, and there is a lot more protection and crowdfunding. Though there can still be losses, they are generally a lot less than if you were taking ownership of a property.
Some crowdfunding real estate by ends is as little as $500. The more you invest, the more opportunities you will have to make money. Most sites that offer crowdfunding real estate investing will have sought out investment projects and opportunities.
Employer-Sponsored Retirement Plan
it is no secret that most larger companies have retirement plans that are also investments. In most cases, you have to do nothing more than sign up through your company in the HR department, and they will deduct the amount you want to invest. Many of these same employers will match your investment up to a certain percent. Even if you can’t afford to invest a large portion of your paycheck, you should at least invest the amount your company will match because that is free money. Most retirement plans or 401(k)s still carry some risk as they are generally grown through mutual funds and investing.
Dividend Reinvestment Plans
Dividend reinvestment plans allow for smaller investments in stocks only in companies that pay dividends. Your initial buy-in is generally a small amount many can afford. Once the stock pays a dividend, it is reinvested into buying more of that same company’s stock.
This dividend reinvestment will continue to build until you reach a limit on the stocks you can own in the company. Because of the way dividend reinvestment plans build, this is an excellent opportunity for you to get in with a smaller amount and build to larger investments in major companies. This type of investing is not only very profitable but lower risk.
Online Brokerage Firms
Investing in online brokerage firms can be great because most of them have a buy-in of $1,000 or less. Once you have chosen your investment plan and have paid the minimum buy-in, these firms will act as any other brokerage firm and invest your money for you. You need to be aware of what percentage the company will take of your returns and choose a company that takes the lowest percentage. While this will cost you in shares of your return, this is an inexpensive way to invest through a brokerage firm.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
