As a millennial, investing can seem like an impossible reality. Between high student loan debts and low paying entry-level jobs, there’s barely enough cash to go around. However, you need to know that it’s possible to invest, even with small amounts of money. It just takes a little bit of creativity.
1. Penny Stocks
You may not have the funds to invest in $50 and $100 stocks, but who says you have to target the big companies? There’s a lot of opportunity to be had in trading smaller corporations with “penny stocks.”
While penny stocks definitely aren’t a get-rich-quick scheme, they can allow you to grow your money and enjoy nice returns, if you know what you’re doing. Check out this helpful penny stocks guide to get started.
2. Employer Sponsored Retirement Plan
Does your employer offer a sponsored retirement plan for employees? If so, this is a no-brainer investment opportunity. You can actually set up an automatic payroll deduction that will remove a few dollars from your paycheck each week. You can do something as small as one percent or sometimes as much as 25 percent (depending on the employer’s rules).
These contributions are generally tax deductible and your employer may even offer a match plan in which they contribute on your behalf. If this is the case, then you should contribute the maximum you possibly can. You’re literally getting free money. Here’s some good info on various types of employee sponsored plans.
3. Pay Off Debt
An investment doesn’t have to involve stashing cash away in some account or entity. One way to invest in your future is by paying off your debt. In fact, depending on the interest rate of the debt, you may be better off accelerating debt payments than putting money in an interest-bearing account. Study your interest rate and consider contributing extra money on your monthly payments. Even making a single extra payment per year can save you hundreds or thousands of dollars extra in the long run.
4. Round Up Your Purchases
When it comes to investing and saving for the future, every penny counts. This is especially true when money is sitting in an interest-bearing account. The problem is that when money is tight, you don’t want to fork it over where it can’t be used. One easy solution is to make it a repeatable habit.
Every time you make a purchase, round that purchase up to the next dollar. So, for example, let’s say you go to the grocery store and spend $67.18. By rounding that amount up to $68.00, you have 82 cents to put in a jar or savings account. That may seem insignificant, but 82 cents every day leaves you with roughly $300 in a savings account at the end of the year. Not bad for incremental savings! (By the way, Acorns is a great tool to help automate this process.)
5. Purchase Silver Coins
Precious metals are great physical investments because they’re almost guaranteed to appreciate over time. While gold may be too expensive, don’t count out silver coins. Silver has been down the past few years, so now is a great opportunity to invest. For just a few hundred dollars, you can amass a healthy collection.
Anyone Can Start Investing!
As you can see, you don’t need thousands of dollars to start investing. All you need is a positive attitude and a stable income. With just a few dollars each month – and a bit of creativity, you can start preparing yourself for a secure financial future. It’s all about planning and careful spending. By making smart financial decisions, your bright future is just a few bucks away.
What are you waiting for?
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