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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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Published on January 8, 2021

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

Ever wondered whether your credit card debt is the reason you’re in a bad financial situation? You can’t enjoy any fun activities because a good chunk of your money goes toward debt payment. Heck, you’re even behind on some of your monthly bills.

The effects of clumsy debt management are too many to list here. This guide is going to help you discover how to pay off credit card debt fast and start chasing your financial goals.

Debt problems are the last thing anyone wants to encounter. But things can get out of hand when all the “little debts” you take accumulate in interests.

What if you knew some simple and proven ways to be debt-free quickly? Implementing them would mean better financial health for you. It becomes possible to free up cash for your “wants.” These include taking a trip or buying something you’ve always desired. All that while paying your bills on time!

Let’s not wait any longer. Here are 7 powerful tips for paying off credit card debt fast:

1. Pay More Than the Minimum Credit Card Payments

Many people only pay the monthly minimum on their credit cards. Truly, that’s the right amount for staying on good terms with your credit card company. But you need a different approach if you’re looking to achieve financial independence within a short time.[1]

Most of your payments go toward interest costs when you only pay the minimum amount. A substantial sum of your balance remains standing. As a result, it becomes more expensive to eliminate your debts.

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You don’t want to wait more than 10 years to get rid of debt while it’s possible to do it sooner. All you have to do is double that $100 minimum payment to $200 or go higher.

The good thing is that minimum credit card payments are affordable in most cases. By paying a higher amount, you reduce your interest costs, lessen your borrowing period, and boost your credit score.

2. Start With High-Interest Credit Card Debt

If you have more than one credit card debt, prioritize putting the extra money toward the ones with the highest interests. This debt pay-off strategy, known as the debt avalanche method, is essential for being debt-free quickly.[2]

First, you need to list down all the credit card debts you have in the order of their interest rates. Next, you choose the one with the highest interest and pay a significant amount toward it each month. It can be an amount twice or even thrice larger than the minimum payment.

At the same time, you make monthly minimum payments on the other debts. Their interest charges won’t be as costly as that of the first debt on your list. You only move on to the next high-interest debt after the first one is gone. Remember that your focus is on the interest rates and not the balances.

3. Revisit Your Budget

Budgeting is useful for tracking your financial moves. Once you create a budget, some tweaks along the way can make it work for you better. One situation that requires you to revisit your budget is when you’re struggling with debts. It might hurt a bit to slash some expenses. But you also don’t want to miss out on achieving financial freedom in the long run.

You can reduce some variable expenses to free up more cash for credit card debt payments. They’re the ones that change from time to time. Some examples are groceries, fuel, and clothing.

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Other opportunities for cutting down your spending lie in non-essential expenses. Instead of dining out all the time, you can cook at home more to save money. You can also share some subscriptions with friends and pay a fraction of the cost.

If you’re determined enough, you can eliminate all your unnecessary expenses and focus on paying off your credit card debt first.

4. Avoid Using Your Credit Cards

Do you want to know how to pay off credit card debt with a low income? One simple way is to stop using them. Having your credit cards everywhere you go means that you’ll be more tempted to buy unnecessary stuff. In this case, you spend money that you don’t really own and get deeper into debt.

The quickest fix to stop the debt build-up is spending with cash. You’ll be more aware of everything you can afford at any particular time. If you decide to keep one or two cards to ease the transition, always make wise choices. For instance, only use them when experiencing financial difficulties.

It’s best to categorize your fun activities under “discretionary spending” in your budget. This way, you won’t need more debt to kill your boredom. By halting your credit debt from accumulating, it’s easy to pay down what you already owe and be happy with the progress.

5. Start a Side Hustle to Boost Your Income

You’re probably turning away a lot of money by not monetizing your skills. Everyone has something that they’re good at doing. And you can use that to generate extra income for attacking your credit card debt.

If you look around your neighborhood, you can find several side hustle opportunities. It can be pet sitting, tutoring, or lawn mowing. You can start an online business by offering services such as digital marketing, content creation, and web development. Such skills go in high demand on freelance sites and job boards.

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Finding clients on social media is also a good strategy to utilize your skills and make more money. Facebook groups, Quora Spaces, and subreddits are some places to look for side jobs. You only have to join a niche-specific platform, share your services, and respond to any opportunities.

It’s possible to learn a skill, practice it, and earn from it. Use the free resources online or purchase some e-courses to get started.

6. Sell Your Used Items for Extra Cash

Starting a side hustle isn’t the only way to generate extra money. You can turn unwanted items into cash for paying off credit card debt. Whether it’s an old TV, book, or furniture, there is always someone itching to buy your used stuff.

A garage sale, as much as it’s old-fashioned, is perfect for getting your neighbors and passers-by to buy from you. You keep all the money because there are no business permits or taxes involved. While you may not make much cash, it’s better than leaving your stuff to go defunct in your storage.

Other than that, you can sell your used stuff on online marketplaces. Facebook groups are great places to start if you want quick approvals and hence sales. You only have to ensure that your listing follows Facebook’s commerce policies.

When selling any pre-owned items online, ensure they’re in good shape to avoid problems with your buyers.

7. Know When to Seek Help With Your Debt

Asking for help with your credit card debt can be challenging to do. But letting it drown you is a road you don’t want to take. While you may feel embarrassed at first, it’s the best way to get back on track when you run out of options.

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There are tons of non-profit credit counseling organizations that can offer you free guidance on how to escape the debt trap. An example is The National Foundation for Credit Counseling. They simply review your finances and help you determine the source of your financial problems. After that, they match you with an actionable debt management solution.[3]

In extreme cases, the debt solution can be:

  • Debt relief – where your debt is partially or wholly forgiven
  • Debt consolidation – taking out one loan to repay others
  • Debt settlement – the creditor forgives a significant portion of your debt
  • Bankruptcy – legal process for seeking relief from some or all your debts

It’s necessary to carefully weigh your options before deciding on the way to go. Find out how it might affect your credit score and any other risks.

Wrapping It Up

Debt is a major setback when you’re trying to prosper in life. Paying off credit card debt is essential if you want to reach your financial goals. That means having more free income, a good credit card score, and even a chance to retire early. You become more productive each day because of the peace in your mind.

So, you now have some tips on how to pay off credit fast. Go ahead and get rid of that good life progress killer!

More Tips on How to Pay Off Debt

Featured photo credit: rupixen.com via unsplash.com

Reference

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