Four Ways To Invest Without Investing A Lot

Posted on: 26 January 2017


You don't need thousands of dollars at hand to begin investing your money. In fact, investing has become even more affordable today, with many options for investing in peer-to-peer lending exchanges and directly in fractional stock options. Here are some of the best ways to invest as little as a few dollars at a time.

1. Peer-to-Peer Lending and Micro Loans

Peer-to-peer lending and micro loan services let you lend as little as $20 a time to other people who need the money. You then gain interest from these individuals as profit. There are some loans that are defaulted on, but overall most people can make a substantial amount of profit. Peer-to-peer lending in areas such as third world countries also afford an individual the ability to be able to effect change.

2. Mutual Funds

Mutual funds are ideal for beginners. Though they do require (normally) at least a few hundred dollars to get started, a mutual fund will let you invest in a large spectrum of stocks at once. These funds are managed by professionals for diversity and balance, so you can simply benefit from the rewards.

3. Individual Stocks

Not every stock is expensive. In fact, there are many stocks that can be only a few dollars -- especially companies that have just started. Investing in individual stocks is risky; you never want to invest too much in a single stock or a few stocks. But do your market research and properly diversify, and you may be able to build up quite the portfolio.

4. Community Stocks

A new type of investment comes in the form of community stocks, which are purchased by large groups of individuals. A stock worth $100 might be purchased by 10 individuals, meaning that everyone has to pay $10 to get 10% ownership of the stock. Though you won't own much of the stock itself, you'll still be gaining the same percentage of return on your investment that you would be if you purchased the stock directly.

Even if you only have a small amount of money to invest, it can still be worth it to see a wealth management adviser at a bank like State Bank of Cross Plains. Advisers are intended not only to build existing wealth, but also to give you advice on how you can establish the stability needed to begin investing. Investing early on is always better -- the best time to start investing is today.