With the economy taking a turn for the worse now and then, it’s wise not to store one’s eggs in one basket. This may be through relying solely on one’s paycheck. One has to find alternate ways to raise extra money on the side. A great way to do so is by investing in the hope that you will get huge returns in the future. However, this is not always the go-to option for most people. This is because most people have the illusion that investing is only exclusive to those with deep pockets. However, they couldn’t be further from the truth. It is actually possible to invest while on a small budget and here is how:
Start by saving
There is a thin line between saving and investing. In order to raise some money to invest, you’ll first need to save up a bit. If you are new to saving, here are some few pointers to saving. First, start off with stowing away a little at a time, say, $10 dollars per week. This may seem like a small amount, but over time it will grow up into a sizeable amount. Ways to starting saving include putting an amount of money in an envelope, a small safe, a shoe box or even in a cookie jar. There are also online savings options and apps that can assist one in saving. With saving also comes the need to spend less than one earns.
Direct Stock Purchase Plans
Once you have saved up a small amount, one of the best places to invest in is in direct stock purchase plans. This is where one buys stocks directly from companies with the absence of a brokerage account and middlemen. However, a drawback to this is that very few companies offer these plans so one is limited in options. However, you can’t dismiss the benefits of this plan where you don’t have to pay large sums of money as commission to a broker and you can even buy half shares.
Find fund companies that offer low minimums
In one’s search for fund companies, it is very easy to get turned off by well-known no-load fund companies that command large amounts of money as investment to the tune of several quid. However, be on the look for no-load fund companies that cater for new investors and don’t require one to raise high limits.
Other ways of getting investment advice are through books by well-renowned entrepreneurs such as Jack Welch or Robert Kiyosaki. Taking the time to read and learn them by heart is a good start to saving which you can find in various stores near you, say Barnes & Noble. Look for coupons and promo codes available to save bucks. All in all, these tips will help start you off investing even on a small budget.