Some people think investing is only for those with wads of cash and disposable income. That cannot be further from the truth, as even the most budget-conscious individual can dabble in investing. All it takes is to find a broker to help them navigate the market and make the right decisions for their budget. Then, people can grow their investments with the correct strategy and guidance.
Budget investors must secure the services of a financial planning expert who can help them plan their investments and take the necessary actions to increase their profits. These professionals will help them choose suitable vehicles to place their money and diversify their growing portfolio. They can also guide investors to avoid possible pitfalls depending on their risk profiles.
Investing isn’t a gamble; it helps protect personal finances from the effects of inflation. Here are some ways to invest on a budget.
Try the cookie jar approach
Before you can invest, you must have some money to work with. Investing is akin to saving money, so to make money and make that money work for you, you must have saved something. It doesn’t take much to invest, so try religiously saving a small amount per week and put it aside for a year. You can use it at the end of the year to open an investment account with a reputable brokerage. Make saving a habit and put the money into investments.
Dabble in real estate
Investing in real estate is one of the best ways to create an income stream. Yes, it may put an individual in debt, especially if they take out a loan, but they can recoup the cost within a reasonable timeframe. In addition, proper funds management will help grow the investment, and it can turn into more commercial and residential properties that can provide a steady stream of rental profit.
Invest in low-initial-investment mutual funds
Some mutual fund brokers and managers will waive the initial mutual investment cost in exchange for an automatic monthly investment scheme. This is convenient because a small monthly investment adds up in due time, and the investment can net a considerable profit. If an individual can find a way to handle the auto-crediting scheme with their bank or payroll department, it will become a common deduction and the funds will gradually grow.
Try the stock market
Previously, people needed to work face-to-face with their brokers to make stock market trades. Nowadays, with the internet and various brokerage firms adapting the strategy of online trading, investing in the stock market is easier. In addition, zero commission schemes made it better for investors to make and grow money in the market. Also, buying fractional shares has become widely available, and more investors realise profits.
Enrol in a retirement plan
Even if an investor has a tight budget, they can save for retirement by enrolling in their employer’s retirement plan. They can contribute a fraction of their monthly salary to the fund and increase it incrementally.
Budget-conscious investors can make calculated investments to grow their portfolios. However, they need guidance from experts to grow their money and realise profits.
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