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10 Small Investments Everyone Should Make That Are Rewarding And Fun

10 Small Investments Everyone Should Make That Are Rewarding And Fun

If you are a beginner investor, the thought of parting with your money for an investment option is rather hard; huge number of funds and investment offers can be confusing. You might be looking and searching for online lottery games to earn some extra money or might be exploiting your smartphone to look for entertaining and rewarding mobile applications. To help you out, we have selected some ideas to use as starting points that can make you money and with the help of these investment ideas, the entire process of investing will get easier for beginners.

Of course, which investment option is best for you depend on your individual situations because each of these investment ideas has its own vital principles and strategies that you must know. So, before making any investment, do your own research, choose your option carefully and hopefully you will make your own good investing luck.

1. Real Estate

If you are looking for long-term protection of your investment against the risks of high inflation in the future, then you will find better value in real estate. Even in developing nations, this is the only sector that thrives and flourishes thus making real estate an excellent investment option.

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2. Gold

Whether in the form of jewelry or in bars, gold has always been a good idea to invest. Unlike most of the other investment opportunities, we have always witnessed that gold’s value is continually on the rise as the dollar keeps depreciating in value.

3. Forex

When comes to compare best returns in forms of investment, Forex trading investment yields the best returns.  In recent years, Forex trading has emerged as one the best small investment options because of its simplicity. Even a student can start Forex trading with a small capital. You just need a sound strategy to make a handsome amount of money in Forex trading.

4. Insurance

Insurance can be used as an investment vehicle. Taking care of yourself in cases of emergency or when you grow old and retire is essential – and a wise investment.

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5. Employee Funds

Nowadays most of the organizations offer “safe harbor” or other equivalent retirement plans. In safe harbor contribution programs, the amount paid by your company is vested to you entirely; that means, even if want to resign from your job; the funds will remain in your name.

6. Treasury Bonds

Treasury Bonds are also considered as a safe small investment option, because these are issued by the government. These treasury bonds can be bought for as low as a thousand dollars each and they profit upwards of 5 percent after maturing.

7. Stock Market

As the stock market heaves to new heights, average investors who missed a lot of the stock market rise have been rushing to jump on board. If you want a bit of excitement while investing at the same time, then you should try experimenting in the stock market. Do your research on the risks involved in trading stocks so that you do not lose all your money.

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8. Mutual Funds

If you want to choose a simple and convenient way for investment, then mutual funds are the best route. Because your fund manager will manage them, you will not get worried about diversifying individual investments yourself or doing your own record keeping.  You just need to choose a specific type of fund and then direct them to your fund manager and he will do the rest.

9. Penny Stocks

If you want an investment option that can make you a lot of money in just hours, just like winning a lottery, try trading penny stocks. These are unpredictable stocks that are very cheap and they can double or triple the value within a couple of hours.

10. Bank Deposits

It’s another small investment option that guarantees you a return on what you put in your account. To get the best deal, compare term deposit rates with other banks because they can vary significantly. Most banks offer substantial returns on fixed deposits, making that a worthwhile investment.

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There are various investment options for beginners which can maximize the returns. It depends on your financial goals, fixed or regular, the investment period and your current financial situation. Keeping these things in mind, a beginner can choose the best investment option.

Featured photo credit: businessinsider.com via static4.businessinsider.com

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Published on September 17, 2018

How Being Smart With Your Money Leads to Financial Success

How Being Smart With Your Money Leads to Financial Success

Achieving financial success is not something that just happens. Maybe if you win the lottery or something, but for the average person like you or me, it comes from a series of small steps you take over a long period of time.

With each step, you form a new smart money habit. And with each smart money habit, you build towards financial independence.

So what sort of habits can you form to get on that path? Let’s take a look at smart money habits you can start today to get you closer to a financially independent future.

1. Avoid being “penny wise but pound foolish”

It’s tempting to try saving a couple cents here and there when buying small items. However, that’s not where the real money is saved. You’re putting in extra effort for something that doesn’t move the needle.

You get the most bang when you’re able to cut down on your bigger bills. For example, finding a lower interest rate for your mortgage could save you $50+ per month. And cutting your transportation bill by purchasing a cheaper car or taking public transportation can provide large gains as well.

So, look at your recurring expenses such as housing, transportation, and insurance, and see where there’s wiggle room. It’s a much better use of your time than trying to pinch pennies here and there on smaller purchases.

2. When you want something big, wait

Impulsivity can get you in trouble in most aspects of life. Finances are no different.

It’s human nature to see something and want it right then and there. It starts as a kid in the checkout line at the grocery store, and it continues on through adulthood.

We get an idea in our head of something we want, and it’s hard not to go out and get it right then.

A good example is wanting a new car. Perhaps you’ve had your car for several years. It’s crossed the 100k mile mark. Maybe maintenance is due, and you’re annoyed that you need to replace the timing belt or purchase new tires.

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So, you get the itch.

You start digging around online, and you realize you could trade in your current car for something newer and more exciting… all for a few hundred bucks a month. Then you get obsessed.

Here’s where you have to take a step back.

Your newfound obsession is clouding your judgement. Rather than giving into the impulse, wait it out.

Set a timeframe for yourself. Maybe you come back to the decision three months down the road. See if the obsession lasts.

It might, but often, a funny thing happens. Often, you forget about it. And often, you find that the new car wasn’t a need at all.

The impulse faded. And you just saved yourself a ton of money.

3. Live smaller than you can afford

You finally get that big raise. And you want to celebrate – and why not?

You’ve been looking forward to this forever. And after all, it was all due to your hard work.

That’s fine, splurge a little. However, make it a one-time deal and be done.

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Don’t get caught in the trap that just because you’re now making more money, you should spend more.

Too often, people get more money and feel like they that gives them the means to buy a bigger house, a bigger car… you know the drill. Resist.

The fact is that living smaller than what you can afford is one of the fastest ways to build savings.

But if you constantly upgrade as you begin to make more, then you’ll never get ahead. You’ll just build up more debt along the way and have just as little wiggle room as before.

4. Practice smart grocery shopping

Food… it’s one of the biggest portions of any budget. And if you’re not careful, it can be one of the biggest drains on your wallet.

But luckily, there are a few things you can do to ensure that you stay smart with your money when buying groceries.

Create a grocery budget

Set a strict weekly grocery budget. When you know how much you can spend on groceries, you can then plan your weekly menu around it.

Once you know what all you need, you can go shopping and keep a running tally as you shop to ensure you’re on track.

I tend to do this in my head, rounding for each item. However, writing it down as you go would probably work best for most people.

Make a list… and never deviate

Never go to the grocery store without a list. If you go to the store with a ballpark idea in mind, you don’t have a true ide of what you need.

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You’re not well-researched. You don’t know what the sales are. As a result, you’re going to make decisions on the fly.

These impulse decisions will lead to overspending, which will derail your grocery budget.

Eat before going grocery shopping

It’s also important to eat prior to going to the grocery store. Hunger is a powerful force.

If you’re shopping on an empty stomach, everything is going to look good. In particular, you may find a lot of ready-made, processed snacks will look enticing.

After all, you’re hungry now and that food is easily available. So subconsciously, you may lean towards those items.

Unfortunately, not only are those items typically less healthy, but they’re likely more expensive. You pay for convenience.

However, when you eat prior to shopping, then you’ll shop with a clear mind. Your hunger won’t cloud your judgement, influencing you to make poor decisions like a cartoon devil resting on your shoulder whispering in your ear.

This makes it much easier to stick to your grocery plan.

5. Cancel your gym membership

Now that you’re all set on your food, it’s time to get smart about managing your budget in terms of physical fitness. And let’s begin by avoiding the gym. The gym bill, that is.

The average gym membership costs around $60 per month. That’s $720 a year.

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Yet, two out of three gym memberships go unused. That means two-thirds of people who have a gym membership are literally giving away almost a thousand bucks a year. It’s crazy!

I recommend seeking an alternative. One good alternative is to look into fitness streaming services.

Streaming services allow you to stream hundreds of workouts like Insanity and p90x, right in your own home for around $10-20 a month. That’s $40-50 less a month than the average gym membership.

Of course, then there’s the free option. The internet is full of free workouts that you can do on your own with minimal or no equipment.

For example, there’s the Couch to 5K program, that I personally used a decade ago to ease myself from couch potato to running my first 5K race. If I could do it, anyone could.

Then there are free resources like reddit that have limitless information on workouts. The Fitness subreddit has done all the research for you, populating workout tips and detailed workout routines for anyone to use in their wiki.

There are several routines that require no equipment. And you can join in on the subreddit to become part of the community, making it easier for those seeking comraderie and encouragement in their fitness goals. All for free.

It’s baby steps… And baby steps can start now!

I’ve never met anyone that can’t stand to be a bit smarter with their money. And on the flip side, anyone can get smarter with their money. But remember, it doesn’t happen all at once.

Begin by fighting your impulses. Prepare for the week and be smart at the store. And cut monthly expenses like gym memberships that are overpriced and you probably aren’t getting your money’s worth out of anyway.

The devil is in the details. And the details can change your lifestyle and prep you for a financially independent future.

Featured photo credit: Unsplash via unsplash.com

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