You will often hear about the importance of investing. Investing your money isn’t all about getting rich. It’s about setting up a secure financial future for yourself. One of the most important reasons to do it is so that you can fund your retirement. However, you might wonder how you’re supposed to make any investments if you don’t have any money. You don’t have much left over at the end of the month, and what you do have you don’t want to gamble with. Understandably, you’re wary of making any investments with the small amount of money you have. But that shouldn’t stop you from making the most of your money. Have a look at some of the best ways to use only a few dollars.
Pay Off Debts
If you have any debts, paying them off is one of the best uses of some extra cash. Even if it’s only a little extra, it’s worth trying to pay off your debts faster. It might not be an investment in the traditional sense. You’re not going to get any money in return. However, it is an investment in your financial future. It will help to improve your credit score and get rid of your debts so that you feel freer. If you’ve got debts hanging over you, it’s better to pay them off faster than to use your money elsewhere.
Consider Cheap Stocks
If you want to start investing in stocks, you might be unsure about how to get started. When you don’t have much money to use, everything might seem out of your price range. It is possible to buy inexpensive stocks that cost less than a dollar, or sometimes a few dollars. These so-called penny stocks can be an option if you want to make some money. However, you do have to be cautious. You could be taking a big risk with some of them, so don’t jump in without doing plenty of research. If you’re smart and good at it, not to mention a little lucky, you could make some money by investing in penny stocks.
Inexpensive Online Brokers
One of the barriers to trading can be the fees that come along with it. If you want to get around them, try looking at online brokers. You won’t be able to trade for free, but you can find some very low fees. For example, Scottrade only costs $7 each time. You can also find brokers that have no or very low minimum amounts for opening an account. This can make trading more accessible to anyone who doesn’t have much money.
Peer-to-peer Lending
Peer-to-peer lending is an interesting way to start investing. You lend your money to other people, and the pay you back with interest. You can do it online via several websites, and you often don’t need to lend very much. Two websites where you can take part in peer-to-peer lending are Prosper and Lending Club.
You don’t need a lot of money to start investing in your future. Make every cent work hard by investing even small amounts.
