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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 June 26, 2020

25 Easy Tips on How to Save Money Fast

25 Easy Tips on How to Save Money Fast

“How to save money fast?” This is the question asked by all of us not in the top 1% of rich people.

If you are looking for ways to drastically reduce your expenses immediately, first look at what you need to spend money on every week. And I mean really need.

You don’t really need to order in food. You don’t really need to buy expensive perfume.

Building from that, you can work out how your regular expenses can be reduced.

As for irregular expenses, they can also be deceptively costly in the long run. Once-off buys can also be tackled with some prudent planning and a little extra research.

And remember: a budgeted lifestyle does not mean a bad or boring one!

But first, understand what budget you can cut down on daily:

  • Regular expenses for the average adult (can be trimmed but not eliminated):
    • food
    • rent/mortgage
    • cell phone
    • insurance
    • socializing/entertainment
    • transportation
    • hygiene products
    • household bills
  • Irregular expenses for the average adult (can be eliminated or cut down a lot):
    • travel
    • clothing
    • medication (*depends)
    • grooming (hair, nails etc.)
    • gifts

Now, let’s dive right into the 25 ways to save money fast:

Save Money on Food

1. Bring a stock of food to the office/work

Instead of popping out for an overpriced salad and a smoothie, leave a set of basic utensils at the office as well as a stock of non-perishable goods such as tinned fruit, tuna, rice crackers and so on (try to avoid the junk food and this can turn into a pretty great diet!).

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Stocking up means you won’t forget or say “I didn’t have the time” when you rushed out to work in the morning.

2. Buy the store-brand version

Many basic foods, such as bread and milk, will taste exactly the same as their branded alternatives. Go for stuff with minimal additives and preservatives. Meat in a tube is probably insanely unhealthy!

3. Eat cheaper cuts of meat

Learn how to tenderize and flavour cheaper meat and fish, and save on the (typically) most expensive item on your grocery bill.

4. Have group dinners

If 10 friends put $5 each in the kitty, it’s pretty easy to make a giant lasagne and get refreshments, as well as hang out with your favourite people.

Save Money in Transport

5. Get a bicycle

Save on gas money and bus/metro fares with this underrated mode of transport.

6. Use public transport and/or don’t get taxis

Some places can only be reached by car. But as a good practise, check your public transport website and see if any routes pass nearby where you need to get to. Walk as much as you can.

7. Find the cheapest gas

Regularly check out where the cheapest gas can be bought.

Save Money in General Shopping

8. Shop online

Not only will you save on the gas or transport fares from going to the shopping mall but you will also find better deals

9. Sell your old stuff

Get your unwanted belongings up on eBay ASAP and earn a few dollars.

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Here’re more ideas for you: 25 Things to Sell to Make a Lot of Money

10. Bulk buying stores

For regular non-perishable/slow perishable purchases such as toilet paper, cat food, pasta, washing powder and so on, do an epic stocking-up trip to a co-op or equivalent (my mum used to go to a place that restaurants buy from).

Be wary of supermarket “deals”, as some have been found to be fraudulent after working out a simple calculation.

11. Become a flea market/car boot sale/street market guru

You can find original gifts and develop good negotiation skills at these places.

12. Generic brand medication

More often than not, the generic version of paracetamol and other basics work the same as the branded version.

13. Choose deodorant, not perfume

It blows my mind when someone drops $70 on a bottle of spray. Stick with a nice deodorant, and not only will you smell just fine but you’ll be sweat-free as well!

Cut Down on Household Expenses

14. Printing

Ink is one of the most expensive substances in the office and coloured ink is doubly so. B

e more efficient and choose black and white, and if your printer doesn’t have a print-both-sides options, just print odd pages first, re-insert the paper and print even pages.

Expand the margins of what you are printing as often as you can to save on paper.

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15. Minimize SMS and phone calls

A combination of a free chat service such as WhatsApp and a free call service such as Skype can reduce your bill to nothing (so long as you have a decent Wifi connection).

16. Shop around for insurance

Most people don’t spend enough time searching for the best insurance deal.

Keep a watchful eye out for deals and new competitors in the market.

17. Try re-negotiating your rent/mortgage

If you have built up a good credit history or a good rapport with your landlord, then chances are a frank chat about needing to tighten your spending could result in lowering your payments. You’ve nothing to lose from trying.

18. Don’t get a TV

Invest in a computer/laptop and an internet-only package. You can watch more (and often better) entertainment on the web, and skip the advertisements as well.

19. Pool your internet bill with a neighbour

My apartment building is basically a big old house split into three apartments. There are five of us in total. We pool the internet bill, making it crazy cheap.

Save Money in Socializing, Entertainment And Travel

20. Have house parties

Instead of paying for overpriced drinks, set up a series of in-house get-togethers with your friends. Everyone takes a turn, so it’s not always your house that needs cleaning.

For sound insulation, hang heavy drapes on the walls and windows. For music, invest in a good second-hand set of speakers which you can connect to your computer. Let Spotify or Grooveshark playlists do the rest.

21. Open festivals, meetups and events

It never fails to surprise me how much underground stuff goes on around me for free or for very cheap. Find out who runs the blogs and websites that list all the less well-known cultural activities.

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22. Volunteer

If you can’t pay for a ticket, volunteer and get to be there anyway.

23. Housesit

There are multiple housesitting websites offering you the possibility to avoid paying hotels and skip the discomfort of crummy hostels.

Save Money on Hygiene and Beauty

24. DIY beauty

French manicures, pedicures, waxing, eyebrows… pretty much all of these can be achieved at home (and done well) with some practise. There are plenty excellent blogs and YouTube tutorials to help.

25. Fewer haircuts/volunteer at a trainee hairdresser

If you can’t bear the risk of a trainee touching your locks, learn more ways to manipulate your hair as it grows and get haircuts sparingly. Women’s haircuts are outrageously priced in many cities.

Bonus: Effective Money-Saving Tips for Everything

Here’s a summary of what you can generally do to save more money:

  • Share/pool resources. Organize a neighbourhood sharing scheme, common resources for your apartment block or with your friends. Not everybody needs an individual lawnmower.
  • Buy energy-saving everything. The easiest way to lower your bills – replace those lightbulbs!
  • Buy in bulk. Be sensible about it (i.e. make sure you have space!), and drastically reduce weekly expenditure.
  • DIY. Skill up using YouTube tutorials on plumbing and many other essential services so you never have to pay for simple problems again.
  • Research a lot before making a decision. Most money-wasting is the result of poor preparation and planning. Don’t shirk this part just because you don’t like it!
  • Use your network. Your network is full of resources that can ease the pain of budgeting. Ask for help.
  • Stop and think. Do I really need it?

Unfortunately, there are some things that require plain ol’ giving up for the time being. This can include high-cost sports such as skiing, the latest versions of some technologies, the finest brands of food/drinks, premier seats at the opera and most other indulgences.

What is important to remember during lean times is that when you look back on your life, it will be the experiences that stand out, not the extra comforts.

Living on a budget can teach you a lot about how much you can really get out of your paycheck. We only live one life, so make the most of every penny you earn!

More Tips for Personal Finance Management

Featured photo credit: Unsplash via unsplash.com

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