After the huge financial upheavals of 2020, it’s no surprise that many of us are starting to look more closely at our financial health. It’s worth looking at ways to maximize the return on your income, which is why more of us are thinking about the best ways to invest for the future.
Generate additional income
Your first challenge is to build up some capital. If your regular salary doesn’t leave you with enough after you’ve paid your monthly bills, consider what you could do to generate that cash surplus you’re looking for. A part-time job, even for a few hours per week can help you save what you’ll need to get started.
Alternatively, there are numerous ways to make money online, from home. These range from buying and selling stuff, to offering your skills as a freelancer, to blogging and affiliate marketing.
Choose a free trading app
When you’re ready to start investing in the markets, choose one of the many free trading apps. You can even get free stocks when you join, so your slim portfolio is automatically beefed up, giving you more opportunities to profit. The golden rule here is to start small as you learn, set a budget, and never invest more than you can afford to shrug off and put down to experience
Build a real estate portfolio
With as little as $500, you can start to invest in real estate. No need to buy entire properties or flip houses, there are some great specialist platforms, where your investments will be placed in a diversified portfolio of institutional-quality properties. Using powerful technology, they either identify profitable projects for you, or you can select any of their projects that interest you.
Low Minimum Investment Mutual Funds
While some mutual funds and ETFs (exchange trading funds require several thousand dollars to invest with them, others have a far lower point of entry. Do your research into the large mutual fund managers. You’ll find that some, even with an opening deposit of $1000, will allow you to spread your diversify your portfolio by spreading your investment (and risk) across several different funds.
So, where to place your first earnings? Interest-earning bank accounts may not be very exciting, but they are a no-risk way to build a cash reserve to start you on your way, and they’ll pay a little interest. Just use one as you accumulate some capital to use for other, more interesting investments with a higher risk/reward ratio.
Go with your passion
Investing in things you love and know a lot about is a great way to start small. Vintage clothing, guitars, vinyl records, stamps- if you know your subject, invest some time and effort in understanding the market for these things, and start collecting to sell at a profit.
Invest in yourself
Finally, keep in mind that the most important investment you can make is in yourself. Investing time, money, and effort into improving your skills, your knowledge, and even your health – can have the greatest impact when you’re looking to build your financial future.