With tax season approaching, you’re likely hoping to add some cash to your available funds. But why wait for a tax refund each year? Instead, try investing money for year-round profits.
Investing is hard though, isn’t it? Just thinking about it feels complicated.
If this sounds familiar, have no fear. Investing can actually be simple. You just need to know some of the ropes.
Ready to start earning some extra income? Here are seven super easy ways to start investing money.
1. Invest in Stocks
You’ve likely heard of the stock market before. It might go way over your head, but that’s alright. You only need to understand the basics to start investing with stocks.
Why do people invest in stocks? Because they have a pretty good return. That means you’ll likely get more money than you put into it, so you’ll make a profit.
While the percentages you hear for stock returns may not sound high, they’re higher than many other investment options, so this is a great place to start.
As with everything else, there are risks. But, if you choose your stocks wisely and go for a diversified portfolio, you can minimize those risks.
2. Check out Real Estate Crowdfunding
In many cases, you’ll need a large amount of money to start investing in real estate. But, you can get started with as little as $1,000. That may still sound like a lot, but in real estate, that’s a really small amount of cash.
How is it done? Through crowdfunding. Essentially, several people go in together and invest in the same property.
It’s a “many hands make light work” sort of idea. With several people investing in the same property, no one has to put a ton of money into it.
You can get started by signing up for an online platform. Be prepared to pay some fees (not all sites require them, but you might run into them) and to possibly be rejected.
While it’s not always a for sure thing, if you can get into this type of real estate investing you stand to make some cash on your investment.
3. Open a Savings Account
If you’re looking for a really simple way to invest, open a savings account. All it takes is a quick visit to your bank.
The return you’ll get likely won’t be very big, maybe around 2.5%. But, if you’re willing to let your money sit in there, you will see your investment grow.
Your bank may require a minimum amount of money to open a savings account. To see what your options are, contact your bank, or look at the other local banks in your area.
While the return in this situation is small, your risk is extremely low. Your money’s growth won’t depend on how well someone else is doing.
4. Use a Roboadvisor
Roboadvisors let you invest your money with little or no effort. All you do is let the roboadvisor invest your money for you.
You’ll likely be given some pre-made options. Or, you can tell your roboadvisor what you’re looking for.
Would you like to purchase stocks? How about buying an EFT? No problem, the roboadvisor can help you do it.
This type of investment is easy and takes very little money to get started.
5. Sign Up for a Retirement Plan
Did you know that you can invest in your own retirement plan? This is a great way to invest your money and have it continually work for you.
Your employer may offer you a 401(k) as part of your benefits employee if you’re employed full time. If that’s the case, go ahead and enroll.
Enrolling in your company’s retirement plan doesn’t mean you have to contribute a ton. You can invest as little as a single percent of your salary.
This is definitely starting small. But, over time that amount will grow. And you can always choose to invest a higher percentage of your salary in the future if you want to.
6. Get Interested in Gold
This is definitely a risky type of investment, but it is an option if you’re up for the challenge. You can invest in gold, and you might end up seeing a return from it.
The idea is, you can invest in gold and when prices go up you make a profit. The thing is, though, other prices go up too. So this might not end up being the best investment to make.
There is a chance you could see a decent return from investing in gold, though. You just need to have paid less for the gold than someone else is willing to pay for it.
As we said, this option is definitely risky. But, it’s an easy investment to get into, so it might be worth a shot.
7. Become a Lender
This is another risky option, but not without its benefits. You can invest in other people by lending them money.
You simply become a lender by allowing someone else to borrow funds from you. In return for this financial help, the borrower will have to pay you interest as well.
You’ll get the amount you lent back, plus the interest, which means you’ll gain a profit. If the person pays it back.
There’s always a risk when it comes to lending, but this might be a good way for you to invest a small number of funds.
You Can Start Investing Money Today!
Investing money isn’t as hard as it may sound. You simply need to know where to put your funds.
Each one of these seven options could be the right path for you. Just make sure you weigh the risks involved before you jump in with both feet.
Need some funds to settle things out before you can get into investing? Click here to learn about four types of loans.