What Are The Smartest Ways To Invest Your Money?
Peer to Peer Lending: Peer to Peer Lending works much like crowdfunding. You are acting similar to a bank with a lot of other investors. When lending like this you get to take advantage of earning money from the interest rates paid on the money you lent. You will always earn a return on the money you give to a P2P company to lend out to another person.
Robots: You can always go the safe way around and let robots handle your investment. Use a Robo-Advisor and let them make the decisions for you. This gives you the benefits of a major financial advisor without paying the high costs and fees.
Betterment: This is an excellent company to use if you can accept the fee of 0.25%. However, this company is more for large investors and not the small investors like you.
Stocks: You can always choose this way and it allows you to pick your own stocks and use an online discount brokerage firm to invest in the stocks for you.
ETFs: This is one way you can diversify your money by investing in ETFs. This type of investment works similar to mutual funds. Furthermore, it allows you to invest in a whole bunch of stocks and not just one.
Online Saving Account: This is very boring, but also safe. If you are afraid to lose your money in the stock market or even mutual funds, you can always deposit your money in an online saving account.
Pay Down Your Debt: OK, I know this one sounds like a great idea to get out of debt, but it won’t make you money. You are wrong there. When paying down on your debt you will save hundreds of dollars in interest charges. This way, when the debt is paid off, you have more money to invest in the long run.
Invest In Your Kids: This is a great way to start saving money and invest in your children’s future. You can put the money in a 529 plan and let the money grow. When it is time for your kids to go to college the money is there for them.
Roth IRA: Start to invest in a ROTH IRA and have tax free money. Each month, add a part of your income to the ROTH IRA and don’t pay taxes on the money you earn. You will actually gain money in the long run and the money you invest will be there for your retirement when you need it.
Invest In A Small Business Idea: If you have a great business idea and you know this can work, then take your money and invest in yourself. What better way to guarantee that you won’t lose your investment in the stock market. You will be the one controlling your money and making your business grow.
Even if you only have a few thousand dollars it is a good idea to invest this money and let it grow. You will need to decide what is best for you and how you want to handle your finances. With small amounts of money, you can start to make it grow and earn dividends and interest on your investment.
How Will You Invest Your Money?