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10 Ways To Invest Money While You Have A Full-Time Job

10 Ways To Invest Money While You Have A Full-Time Job

Most of us don’t necessarily love the jobs we have. We all had wonderful plans for ourselves growing up. But our jobs pay, so here we are. But wouldn’t you just want to break away from all this charade? Do the things you’ve always wanted to do? Sure, who wouldn’t? But that requires money, the only source of which right now is your job.

But we do truly live in a golden era where anyone anywhere could make small investments and possibly make money off of it. Even though investing on oneself, one’s education, skills, health etc., would still be the best investment for the long run, most of us are looking to make investments that could actually make us money right now.

So, here are ten ways you could invest money while also maintaining a full-time job.

1. Peer-to-peer lending

This is possibly the easiest investment you could make. Peer-to-peer lending involves you lending some money to a peer in hopes of making a profit out of the interest in the returns. Now of course this peer has to be someone you know or trust, so that alone reduces the pool of potentials. In a way, this method could be deemed as risky as it is simple. However, if you abide to the golden rule of lending anything including money, “Don’t lend something you can’t afford to lose”, the risk is definitely worth the simplicity and potential profit.

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2. Investment in precious metals

Precious metals are a very controversial investment. Some deem them the best investment one could make, others deem them the worst. Truth is, they could be a little bit of both.

The fluctuation in their prices aren’t as predictable as other things since they’re mostly dependent on the rise and fall of the dollar. However on the plus side, if a small investment is what you wish to make, the potential profit usually balances out the potential risk. Besides, precious metals like gold and silver are among the last remaining material investments one can physically hold on to.

3. Trading forex

Forex or the foreign exchange market is the world’s largest financial market. Everyday trillions of dollars are exchanged through forex and that is vital to the economy. Businesses, governments and investors use forex. Businesses use them to facilitate foreign trade, governments to implement policies and investors study the market and predict the rise and fall of the exchange rates and capitalize on this.

For as little as 25$ you could get started on foreign currency trading. The basic idea is that you buy a certain amount of a foreign currency and sell it at a higher price when its valuation is higher than what you originally paid.

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4. Trading options

Options trading is a process that lets you control a stock or an asset without actually owning it, letting you capitalize on its price chances. An options contract allows you the right to buy the shares owned by another person for a certain price known as the strike price before a certain date in exchange for a certain premium.

If the value of the share rises, then you can buy the shares for a price cheaper than the market price and then sell it at the market price to make an overall profit. If instead the value of the share falls, then you may decline from buying the stocks but you lose the premium you initially paid.

Options trading can make a great investment if you understand the market.

5. Trading futures

Futures trading involves investing in a volatile market and capitalizing on the fluctuations while providing stability to the businesses you have contracted with. With the pay of a full a time job, you can possibly afford to contract with small local businesses.

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If the market prices drop and the businesses can manufacture cheaper, then you get the profits. However, if the market prices rise and the manufacturing becomes more expensive, then you lose money. Once again, like options trading, if you are well educated about the market then futures trading make great investments.

6. Investment on real estate

Real estate prices continually rise and fall. And like precious metals, they are assets you can physically hold on to. If your pay can’t afford to invest in real estate around you, there are options around the world.

Many countries allow foreigners to invest in their real estate and if you’ve assessed the risks well enough, they may potentially prove to be a great investment. This is specially true for developing countries where a cheap real estate can be worth a lot more within just a few years. Once again, this requires great research.

7. Crowdfund investments

This could possibly be the best option for someone with a full time job. In crowdfund investment you are only require to invest a small portion of the required amount, and your future returns depend on the amount you have initially invested. This gives you the option to invest on big businesses that could potentially make a lot of profit. Furthermore, since you’re only investing a relatively small amount you could invest in a number of businesses and expect at least some of those to make you a profit.

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8. Buying stocks from established corporations

Stocks of established corporations are usually a safe bet. Let’s say you are willing to invest a thousand dollars a month from your salary. You could buy 20 stocks worth 50 dollars each. Since big corporations are constantly at work to try and increase their profits, stock prices are sooner than later bound to increase too. You could then sale some or all of the stocks you own to make a profit.

For an established corporation, worst case scenario may be the drop in stock prices by 5 or 10 dollars, because they don’t usually go below that. You’ll only be losing a $100 or $200 of your initial investment.

9. Being a silent partner in small businesses

Small businesses don’t usually require a lot of money to operate. The $1000 you agreed to invest in stocks in the previous point could very well help run a small business somewhere else.

Furthermore like real estate, you are not restricted to invest in businesses near you. In a developing nation, the $1000 could mean a lot and could help establish a number of businesses that could in time grow to be profitable. Becoming a silent partner means you don’t have to worry about the operations of the business. But once again, you need to be sharp on your assessment of the business and the person running it before you invest.

10. Buying penny stocks

Penny stocks are common stocks that are valued at less than a dollar. Investing in penny stocks is therefore considered highly speculative. They seldom make a good investment so unless you’ve run out of options, you should stay away from them. However since they are already so cheap, there is no other place for their prices to go but up. If you buy a lot of them (since they are all so cheap), at least some of them are bound to make you some profit. At least, these are the general assumptions surrounding investment in penny stocks.

Featured photo credit: Investing Money via upload.wikimedia.org

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Nabin Paudyal

Co-Founder, Siplikan Media Group

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Last Updated on January 2, 2019

How Personal Finance Software Helps You Get More Out of Your Money

How Personal Finance Software Helps You Get More Out of Your Money

Do you know what mental health experts point to as the biggest cause of stress in the United States today? If you said “money,” then ding, ding, we have a winner!

Three out of four adults today report feeling stressed out about money at least part of the time. People are either worried about not having enough money or whether they’re putting the money they do have to use in the best possible way.

Your money is either in charge of you or you’re in charge of it, there’s no middle ground. Using some type of personal finance software can help alleviate some of that money stress and better allow you to manage your money effectively. Without it, you may just be setting yourself up for constant financial worry. Life is already tough enough and there’s no need to make it more difficult by simply hoping your money issues will all work out in your favor. Hint: they won’t.

This guide will help you to understand how personal finance software can better assist with both accomplishing long term financial goals and managing day-to-day aspects of life.

Whether it’s tracking the savings plan for your child’s college fund or making sure you won’t be in the red with the month’s grocery budget, personal finance software keeps all this information in one convenient place.

What Exactly is Personal Finance Software?

Think of it like the dashboard in your car. You have a speedometer to tell you how fast you’re going, an odometer to tell you how far you’ve traveled, and then other gauges to tell you things like how much gas is in the tank and your engine temperature. Personal finance software is essentially the same thing for your money.

When you install this software on your computer, tablet, or smartphone, it helps to track your money — how much is going in, how much is going out, and its growth. Most personal finance software programs will display your budget, spending, investments, bills, savings accounts, and even retirement plans, levels of debt, and credit score.

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How It Leads to Financial Improvement

It shouldn’t come as a surprise, but people who regularly monitor their finances end up wealthier than those who don’t. When you were a kid, keeping track of all of your money in a porcelain piggy bank was pretty easy. As we get older, though, our money becomes spread out across things like car payments, mortgages, retirement funds, taxes, and other investments and debts. All of these things make keeping track of our money a lot more complicated.

Some types of personal finance software can help make things a little less complicated, setting you up to meet financial goals and taking away some of the stress associated with money.

Even if you already have a Certified Financial Planner (CFP) some type of personal finance software can be of great benefit. Whereas CFPs focus on the big picture of your money, they don’t handle the day-to-day aspects that determine your overall financial health.

It’s also not nearly as complicated as you might think and can take out a lot of the tedium that comes with doing everything on an Excel spreadsheet or with a pad and pencil.

Types of Personal Finance Software

When it comes to personal finance software, it generally fits into two categories: tax preparation and money management.

Tax preparation software such as Turbo Tax and H&R Block’s software can help with everything from filing income taxes to IRS rules and regulations and even estate plans. Plus, there’s the benefit of filing online and getting your refund check a lot faster than if you were to mail off your forms after waiting in line at the post office.

For the purpose of this article, however, will be focusing more on the personal finance software that aids with money management.

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Money management personal finance software will help you to see the health of your cash flow, pay down debt, forecast for expenses and savings, track investments, pay bills, and do a host of other things that 30 years ago would have practically required a team of accountants.

When to Use Personal Finance Software

So far we’ve gone over what exactly personal finance software is and how it can be a benefit to your money. The next logical step in this whole equation is determining when it should be used and how is the best way to go about getting started using it.

Below are four of the most common and practical ways to use personal finance software. If all or any of these apply to you and your money, then downloading some type of personal finance software is going to be a smart move.

1. You Have Multiple Accounts

There’s a good chance that when it comes to your money, it’s in more than one place. Sure, you probably have a checking account, but you may also have a savings account, money market account, and retirement accounts such as an IRA or 401k.

If you’re like the average American, you probably have two to three credit cards as well. Fifty percent of Americans also don’t have loyalty to just one bank and spread their money across multiple banks.

Rather than spending hours typing in every detail of every account you have into a spreadsheet, many programs allow you to easily import your account information. This will help to eliminate any mistakes and give you a bird’s eye view of everything at once.

2. You Want to Automate Some or All of Your Payments

Please don’t say that you’re still writing out paper checks and dropping each bill in the mailbox. While it’s noble that you’re doing your part to keep postal workers employed, we’re 18 years into the 21st century and you can literally pay every bill online now.

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There’s no need to log into every account you have and type in your routing number either.

With personal finance software you can schedule automatic payments and transfers between all of your imported accounts. Automatic transfers will help to make sure you have the necessary funds in the right account to ensure all bills are paid on the appropriate date. Late fees are annoying and do nothing but cost you money. It’s time that you said goodbye to them once and for all.

3. You Need to Streamline Your Budget

Perhaps the best feature of personal finance software is that it allows you track everything going in and out of your virtual wallet.

Nearly every brand of personal finance software out there has easy-to-read graphs and charts that allow you track every cent you spend or earn, should you choose. You might be pretty amazed when you see just how much you spent on eating out last month or if you splurged a little more than you should have on Christmas gifts last year.

Every successful business on the planet has a budget and using personal finance software can help you trim the fat on your spending in ways that affect your everyday life.

4. You Have Specific Goals to Meet

Maybe it’s paying off debt or saving for up something like a European vacation. Whatever your financial goal is, whether it’s long-term or short-term, personal finance software programs are one of the savviest ways to go about reaching those goals.

You can do everything from set spending alerts to notify you when you’re over budget to automating what percentage of your paycheck goes to things like retirement investments. The personal finance software that you choose should show you exactly how close you are to hitting those goals at any given time.

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How to Get Started

From AceMoney to Mint and Quicken, there ’s no shortage of personal finance software apps out there. Many of these programs are free to download and will allow you to pay bills, invest, monitor your net worth and credit profile, and even get a loan with the swipe of a finger.

Other programs may only offer you limited services and will require a one-time fee or subscription to unlock all that they offer. These fees can often vary from as little as two dollars to 50 bucks a month.

It’s best to start off with the free version and then gauge whether you’re able to accomplish everything you’d like or if it’s worth exploring one of the paid options. Often times the subscription programs come with assistance from financial planning and investment experts — so that can be a real benefit.

When deciding which personal finance software program to use, it’s also important to look at how many accounts you wish to monitor. Certain programs limit the number of accounts you can add. Be sure that if you have checking, credit card, and investment accounts to monitor, that you choose a service that can monitor them all.

Finally, when looking around for the right personal finance software that meets your needs, make sure that you’re comfortable with the program’s interface. It shouldn’t be expected that you recognize every single feature instantly, but if the features don’t seem readable and manageable to you, then you’re not as likely to use it and get the full benefits.

Final Thoughts

Personal finance software can go a long way in helping you to take control of your money and meeting your financial goals. It’s important to note, however, that some focus more on budgeting and expense tracking while others prioritize investing portfolios and income taxes. Explore several different programs and read reviews to find the one that’s right for you.

In this day and age, managing one’s personal finances in a secure manner that allows the user to have a real-time visual representation of their money is easier than ever before. With the numerous applications that are out there — both free and subscription-based — there’s no reason that every person can’t take control of their money and ensure they’re making smart money moves.

Featured photo credit: rawpixel via unsplash.com

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