Investment is a tricky aspect, and many of you live under the impression that you need to be made of money to make investments. You cannot be well off by stashing money under your mattress. The fact is you can start investing with as little cash as £50. However, it does not mean that you will stop saving money.
Saving opens the door to investment. First off, you need to set aside some money that you will later invest in a business. How can you invest unless you have additional funds? Since you do not earn a significant amount of money, you can start by putting aside £10 every week.
It may seem a lot f you are living from paycheque to paycheque, but this will add up to £520 over a year. Make your habit of saving money and make sure you do not dip into those funds. Once you have saved money, you can invest it.
You need to enhance your knowledge before taking the plunge
There are various investment opportunities, and each comes with different benefits and risks. Before you throw your money in stock or bonds, you need to take knowledge of how they work.
If you know the market, you will be able to make firm investment decisions, which will have higher chances of success. You can take the help of investment consultants who guide investment ways based on your financial condition and goals.
Apps can pave the way for micro-investment
The investment seems to be tricky, but you can manage it with online apps. The most popular investing app is Acorns. It allows you to invest spare change. For instance, if you have spent £4.75 on a coffee, the Acorn will round it up to £5 by adding 25 cents. You can opt for weekly or monthly investments.
Robinhood, Stash, Betterment, Stockpile, and Wealthfront are some other popular apps that people use for investment purposes. Now creating an investment portfolio is no longer difficult.
You can invest in stocks even if you are not wealthy
It is easy to stay away from the talk of investment, but never forget that you cannot become well off without investing.
If you stick to your savings account, you are not favoring yourself. Do not ignore the concept of the present value of money. Investment helps you get the right amount of return. It helps you build wealth for your future.
Many people think that they need to be costly to invest in stocks, but this is a myth. Many firms allow people to spend even less than £1,000. If you start setting aside even a nominal amount of money, you can have this amount saved by the end of two years. However, some firms accept deposits of £100 per month.
Stocks consist of high risk, and hence they yield higher returns. Some people do not mind taking out a loan to invest in stocks. There are various companies out there to help you, even if you do have bad credit. You can take out very bad credit loans with no guarantor and no broker from direct lender in the UK.
You can lend money to earn interest
Peer-to-peer lending is one of the most popular methods of lending money. You may know about it from the aspect of borrowing. However, if you think from a lender’s point of view, you will understand that nothing can be a better investment than this.
Bad credit borrowers cannot borrow money from banks and traditional financial institutions. That is why they seek financial assistance from direct lenders and peer-to-peer lending firms.
Some sites are offering peer-to-peer lending services. You need to open an account as an investor and deposit an amount that needs to be disbursed. Loans applicants create financial profiles, review the offers, and accept the one. With the help of peer-to-peer lending, you can earn the right amount as interest.
Bad credit borrowers sometimes need a minimal amount of money, for instance, £50, £70, £100, etc. You can lend this amount and charge the market interest rate.
You can also lend money to your friends and colleagues and charge a nominal interest rate. This will be a win-win approach. You will earn money as interest, and your friends will get financial assistance cheaper than direct lenders.
The final word
You can invest even if you have a little money. Set a target of how much money you would like to invest down the road and start setting aside money. Investment can undoubtedly help you get a good return, but it does not mean that you will stop saving money. You should have an emergency cushion. Otherwise, your financial track will swerve in the direction of borrowing.
Even though you can make investments with little capital, make sure that you have paid off all of your debts. Investing, along with mounting debt, will make it more challenging to get rid of debt.