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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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Tayyab Babar

Tayyab is a PR/Marketing consultant. He writes about work, productivity and tech tips at Lifehack.

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Last Updated on March 4, 2019

How to Use Credit Cards While Staying Out of Debt

How to Use Credit Cards While Staying Out of Debt

Many people will suggest that the best thing to do with your credit cards during these tough economic times is to cut them up with a pair of scissors. Indeed, if you are already in huge debt, you probably should stop using them and begin a payback strategy immediately. However, if you are not currently in trouble with your credit cards, there are wise ways to use them.

I happen to really love my credit cards so I will share with you my approach to how I use mine without getting into deep financial trouble.

Ever since about 1983 when I got my first Visa card, I continue to charge as many of my purchases as possible on credit. Everything from gas, groceries and monthly payments for services like my cable and home security monitoring are charged on credit. Despite my heavy usage, I have maintained the joy of never paying any interest fees at all on any of my credit cards.

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Here are some tips on how best to use your credit cards without falling into the trap of paying those nasty double-digit interest fees.

Do Not Treat Credit Cards as Your Funding Sources

Too many people treat their credit cards as funding sources for major purchases. Do not do this if you want to stay out of trouble. I use my credit cards as convenient financial instruments so I do not have to carry around much cash. In fact, I hate carrying cash, especially coins. When you buy things on credit, the purchases are clean and you will not get annoying coins back as change.

I do not rely on my Visa, MasterCard or American Express to fund any of my purchases, large or small. This brings me to my golden rule when it comes to whether I will pull out any of my credit cards either at a retail or online store.

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I never purchase anything with my credit cards if I do not have the actual cash on hand in my bank account.

If I really cannot pay for the item or service with cash that I already have at the bank, then I simply will not make the purchase. Remember, my credit cards are not used as funding sources. They are just convenient alternatives to actual cash in my pocket.

Make Sure to Always Pay Off Balances in Full Each Month

The next very important part of my overall strategy is to make absolutely sure that I pay the balances in full each and every month no matter how large they are. This should never be a problem if the cash has been budgeted for my purchases and secured in the bank. I have always paid my full balances each month ever since my very first credit card and this is why I never pay interest charges.

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Using Credit Cards with Rewards

Most of my credit cards are of the “no annual fees” type, including one MasterCard on a separate account I keep at home as a spare in case I lose my wallet or incur any fraudulent charges. However, I do use a main Visa card which does have an annual fee because all purchases on that card reward me with airline frequent flyer points. For me, the annual fee is worth it since I do travel and I get enough points to redeem many free flights.

You have to decide for yourself if you will charge enough purchases on credit each year without paying interest charges to warrant a credit card that rewards you with airline points (or other rewards). In my case, the answer is “yes” but that might not be the case for you.

I occasionally use a MasterCard or American Express card on small purchases just to keep those accounts active. Also, I have been to the odd retailer that accepted only a certain type of credit card, so I find that having one from each major company is quite handy. Aside from my main Visa card which earns the airline points, the rest of my cards are of the “no annual fees” variety.

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So this is how I use my credit cards without getting into any financial trouble with them. This strategy is recommended only if you are not in debt, of course. In fact, it is worth keeping in mind once you’re out of debt so that you can keep your credit cards active and treat them responsibly.

What are your credit card usage strategies? Let me know in the comments — I’d love to hear what methods you use.

Featured photo credit: Artem Bali via unsplash.com

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