If you want to make sure that your cash should remain safe and secured, you better need to invest it somewhere properly and smartly. You have to analyse first before making any choice because there has to be some right investment opportunity for you to make. This can be an investment in any domain including stock market, online trades, commercial constructions, and much more.
- Investment Ideas : There is no minimum as well as maximum. You have to make sure that what are your expectations and you invest right away if they are met. There can be any low budget investment ideas including paying debits, real estates, emergency cash, and much more.
- Low Budget Investment Ideas : There are lots of low budget investment ideas, which may need less than $500 investment. Whether you are preparing for your retirement or any additional incomes, you can invest in any of the areas listed below with ease and comfort.
- Dividend Reinvestment Plan : The dividend plan of reinvestment is also known as DRIP and it is a tiny investment opportunity available for investors who do not have much to invest. The option lets you to purchase stocks and items right away from the organizations directly with no interference of broker.
The activity goes on until you afford paying and stops when you are out of budgets. As long as you can purchase one share, you are still able to participate. This involves dollar averaging, reinvesting, and involves no fees.
- Dollar Averaging : Dollar averaging lets you invest a specific dollar amount less than $15 even or $30 on monthly basis. In this mode, you invest daily and make purchases during all market points even when it is up or down. This dollar average concept is a long term process because it provides you with a good return on investment and your average price per share refers to more prices in bull markets and minimized prices in bear ones.
- Reinvesting : As cleared from the name, reinvesting in dividend refers to the shares, which company pay are reinvested in your account holdings. This lets you purchase more items in stock. These dividends are actually the earnings or revenues paid by the companies to their shareholders.
- Fees Involvements : There are no fees incurred by most of the DRIP accounts but some of them do charge a very tiny amount for ongoing reinvestments.
- Pay Debits : Paying debts become hectic and trouble at the same times especially when you have too many of them. The type of debts you have to pay always depend on the decisions you make for payment like taking loans from some other source or pay directly from accounts. It all depends on the tax costs of borrowing or loans compared to after tax returns on investments.Like for example, you are a sole earner on wage basis having tax bracket of 35% let’s say and also having mortgage of 30 years with 6% interest rates. Now you can deduct mortgage interest rate in some limits set for you from federal taxes, after tax costs of debts will be approx. closer to 4%.
In addition to this, student loans are also tax deductible debts and they can also save your money sometimes. If you have huge portfolio of investments including equities as well as fixed incomes, you may observe that your after tax returns on your money investments will be quite higher than after tax debts. For example, if your mortgage is of lesser interest rate and you have made investments in risky modes like small cap stocks, it would be proved better for you in the end.
Moreover, if you are a sole entrepreneur, you can also make certain investments in business methods instead of debts reductions. Last but not the least; if you are retiring soon having conservative investment portfolios and profiles, above statement can be vice versa.
- Real Estate : This is one and only option nobody can deny in any respect. This is because investment in this area always worth. Real estate investments can be made in any modes including renting apartments, purchasing plots and selling them, acting as a third party between seller and buyers, construction and building homes, apartments and villas and selling them at more prices, investing in areas where future developments are expected, and much more.
Real estate rarely disappoints investors until or unless there is some major happening occurs like any accident or unexpected incident or anything on the place or environment you are investing.
- Emergency Funds : It is always a bets option to keep some money aside for better future and savings. These are said to be emergency funds. Usually, these are the funds in liquid forms like cash and are available whenever needed. These act as double edge swords because money is more liquid and earning is very less. So, if you are held in emergency and you do not have much in stock or you are never held in emergency, in both cases, earning stands nowhere.
Basic purpose of emergency funds is not to give you any return but it is an emergency job you perform when needed. It loses its worth if there is no or minimal emergencies and becomes important at the same time when you badly needs it in extreme emergency.
- Takeaway from All : Few are the above-mentioned investment ideas but are not limited for sure. There exist more than this and you have to look better options around you. It always up to you that how much you have in your pocket to take a small start and even if you start, you have to analyse yourself stage wise that are you in the right direction or not.