When you think of investing, you probably think of having thousands of dollars put in the stock market or in gold. In most cases, this isn’t the average investing.
In fact, you can do investing with some of the money you have in your bank account. You don’t have to have thousands and thousands of dollars set aside to invest.
We are going to look at some of the simple investments you can make.
Peer-to-peer Lending
People need loans, and if you have extra money, why not lend them the money? Peer-to-peer lending is not a new idea, but the Internet has completely changed how we do it.
There are plenty of sites, like Prosper, which let you get started investing your spare cash in a matter of hours. The best part of Prosper is you can invest with as little as $25. You probably have that in your wallet right now.
Life Insurance
You might not think of life insurance as an investment, but it’s one of the best. Additionally, you might think life insurance is expensive, but it can be much cheaper. Not only is life insurance affordable, but it can be quick and easy to get.
If you’re looking for the easiest way to get life insurance, without having to go through the hassle, a no exam plan is the best choice. Not all of the no exam companies are the same, some of them are much better than others.
Looking for a cheap no exam plan? Look no further than Haven Life. They are quickly becoming the premier place for no exam coverage. The reason they are so popular is because of their speed. They have expedited the process and can give you coverage faster than just about any company out there.
College-Savings Plan
Hopefully, your children are going to go to college and get an excellent education. Unfortunately, college is expensive. Every year tuition costs are going to get even more expensive.
If you have some extra money sitting around, you should start saving money as soon as possible. The best way to save for college is through a 529 savings plan. Sure, you can use a traditional savings plan, but you get some special tax advantages with a 529 account.
The money in the 529 account grows tax-free, and it’s not taxed until you take it out. Additionally, there is no limit on how much you can put in these accounts, as long as it doesn’t surpass the cost of education expenses.
Robo-Advising
It’s never too early to start saving for your retirement. The sooner you get started, the more potential your investments have.
Thankfully, you don’t have to get into the weeds of your investment. In fact, with sites like Betterment, you don’t have to do anything. You can get investing in a matter of hours and with less than a 1000 dollar investment.
Create your account, set your investment goals, and then start putting money in your account. Simple as that. Betterment then puts your money in various investments based on your financial goals.
Your Debt
Paying off debt is not the most fun way to spend your money, but it could be one of the most profitable investments you make. If you have some extra cash sitting around, paying off some of your bills is one of the best things to do with it.
The sooner you pay off your debts, the less you’ll pay in interest. If you have bills hanging over your head, like a credit card bill, then take your spare cash and pay it off. It can save you hundreds of dollars every year.
Figure out what your biggest debt is, and put all of your extra cash towards paying it off. Not only will it save you money in the long-run, but it will also make you feel better about not having those bills every month.
Investing with Extra Cash
You don’t have to have a small fortune set aside to invest your money. You would be surprised at how much you can do with the money in your wallet.
Regardless of how you choose to invest, you need to get started today. The longer you wait, the less your investments can earn. The most influential component of investing is time. The more time those investments have, the more they can earn.
