Investment Ideas For Beginners
Everyone should start making investments as early as possible in life. The sooner you invest in something, the more time it has to grow and become more valuable.
Understandably, you aren’t all blessed with oodles of cash. 🙄
Those of you who have been on this blog before will know we’ve covered topics relating to starting a business with limited funds, and so on. This is a similar concept, only that the focus is on investing your money when you have little to spare.
All of these investment ideas below can be done with as little as $500.
1. Fractional shares
You probably know the basics of investing in shares. Basically, you buy a percentage of a company, and your shares grow in value as the company does well in life. It’s a great way to make money, with one flaw – investing in shares can be very expensive.
For example, investing in Amazon shares seems smart as this business continues to grow and get bigger. Unfortunately, the current share price is over $2,000! So, how can you invest if you only have $500? Well, it comes down to fractional shares.
Here, you can invest in a fraction of the overall shares, meaning you cut yourself a slice of the pie without requiring heavy investments. 10% of Amazon shares is $200, which is far easier for you to afford. This is commonly seen as one of the best ways for new investors to get started.
2. Indices CFDs
Another method is to look at indices CFDs as a way of getting on the investment ladder. Now, there’s a lot to learn if you want to trade indices CFDs, but it’s worth educating yourself.
In essence, you will trade the difference in the price of an index from one time period to another. This is beneficial as you don’t technically own the asset.
Therefore, the costs are much lower than you expect. If you’re confused, don’t worry. It’s normal to be befuddled, but all the trading platforms that allow this trading will explain the process in more detail for you.
3. Mutual funds
Lastly, you have mutual funds. These funds are basically investment securities that let you invest in a series of different stocks and bonds all in one go. They can easily be started with as little as $500, and you don’t have to do much at all. As a Nigerian, you can check out mutual funds at Stanbic IBTC bank.
Set up a mutual fund, and the owner of that fund will decide what to invest in for you. Then, sit back and watch your money grow over time. Many people liken this to a savings account on steroids. The idea is you’re making long-term gains. So, a mutual fund is a secure place to store your savings and watch them appreciate in value.
A common misconception about investing is that you need thousands of dollars to start. Sure, that’s the case if you want to invest in certain shares or the real estate market. However, the three ideas in this post show that you can definitely start investing with $500 – in some cases, you can have less than this!
Start growing your wealth today by investing your money.