Small investment ideas can be a great way to get started in the world of investing, without having to commit a large amount of money. However, there are also some potential downsides to investing in small companies or startups. So, keep in mind that small investments…
- Can be more volatile.
- May not have the same growth potential as larger investments.
- May be more difficult to sell if you need to cash out quickly.
- Might require more research and due diligence on your part.
Overall, putting to action some small investment ideas can be a great way to get started in the world of investing with limited capital. Just be sure to do your homework and understand the risks involved before diving in headfirst.
Small investments can often lead to big returns. And with a little bit of research and planning, you can make small investments that will pay off in a big way. Technology has given us many opportunities to make small investments with a little amount of capital.
Keep reading to learn about 14 great small investment ideas.
Small Investment Ideas to Make Money
No. 14 Invest in a Mutual Fund
A mutual fund is a type of investment that allows you to pool your money with other investors. And it is managed by a professional. Mutual funds typically have low fees. And they can offer diversification, which can help reduce risk.
No. 13 Buy Stocks Online
Buying stocks is one of the obvious small investment ideas. Doing so online is a great way to get started in investing. You can often buy stocks for less than $5 per share, and you can start with just a few dollars. There are many online brokerages that offer free or discounted stock trades.
No. 12 Open a High-Yield Savings Account
A high-yield savings account is a type of account that offers a higher interest rate than a traditional savings account. And this can help you grow your money faster. For example, many online banks offer high-yield savings accounts with no minimum balance requirements.
Keep reading to learn more on small investment ideas.
No. 11 Invest in a CD
A CD is a type of deposit account that offers a fixed interest rate for a set period of time. CDs are a small investment ideas that typically have terms of six months to five years. They are low-risk and can offer higher interest rates than savings accounts.
No. 10 Invest in Bonds
Bonds are a type of debt investment. When you invest in bonds, you are lending money to a government or company. So, they typically have low risk and can offer stability and income during periods of market volatility.
No. 9 Buy a REIT
A REIT is a type of real estate investment trust. REITs are companies that own and operate income-producing real estate. Such as as office buildings, shopping centers, apartments and warehouses. In addition, REITs typically have high dividend yields and can offer investors exposure to the real estate market. Without having to own property directly. And often, these pay monthly dividends. Furthermore, this is one of the small investment ideas that often offers great returns.
No. 8 Make a CD Ladder
A CD ladder is a strategy that involves buying multiple CDs with different maturity dates. This allows you to earn the highest interest rate possible while still having access to your money.
No. 7 Invest in Peer-to-Peer Lending
This is one of the small investment ideas that can be done in your own circle of friends. Peer-to-peer lending is a type of lending that allows you to lend money directly to individuals or businesses. This can be a great way to earn higher interest rates than you would with a traditional savings account.
No. 6 Buy an Annuity
Now, this option is pretty expensive compared to the others on this list. But, you can match the high-yield savings account with this one and save up to buy an annuity.
An annuity is a type of investment that provides income for a set period of time, typically during retirement. Annuities can offer stability and income during retirement. But like I said, they typically have high fees and expenses.
No. 5 Invest in Crowdfunded Real Estate
Crowdfunded real estate is one of the types of potentially small investment ideas that allows you to pool your money with other investors to buy property. Similarly, this can be a great way to get started in real estate investing without having to put down a large amount of money.
No. 4 Invest in a Business
Buying into an existing business can be a great way to invest small amounts of money. And you can often find businesses that are looking for investors on sites like AngelList and Kickstarter. But this option is easier said than done. Although, if you have some extra cash and are looking for a high-risk, high-reward investment, this could be a good option for you.
No. 3 Invest in Yourself
One of the best investments you can make is in yourself. And you can easily do this by taking courses, learning new skills, or starting your own business. This small investment idea knows no boundaries. Additionally, investing in yourself can pay off in many ways. Including increased earnings potential and job satisfaction. Further, it doesn’t have to cost a lot of money. There are many free or low-cost resources available online and in your local library.
No. 2 Start your Own Business
If you have an idea for a business, starting your own can be a great way to invest small amounts of money. You will need to put in some time and effort. But if you’re successful, you could see a big return on your investment.
No. 1 Start your Own Crowdfunded Real Estate Company
This could be a great way to turn a small investment idea into large amounts of money and get started in the real estate industry. For instance, there are many online platforms that allow you to create and manage a real estate crowdfunding campaign.
Final Thoughts on Small Investment Ideas
Technology has given us many opportunities to make investments with a little amount of capital. And with online brokerages, we can buy stocks for less than $5 per share. We can also open high-yield savings accounts and invest in CDs to grow our money faster. And we can even invest in bonds and real estate without having to own property directly.
So, if you’re looking for some small investment ideas, these 14 options could be a great place to start. Just remember to do your research. And understand the risks involved before making any decisions.
Small investments can add up over time. Especially if you invest in assets that offer compound interest or dividends.
By starting early and investing regularly, you can grow your portfolio and reach your financial goals. There are many different small investment ideas out there. So it’s important to do your research and find the option that best suits your needs. With a little bit of planning and effort, you can make your small investments work for you. This should give you some ideas on how to get started with small investments.
Vanessa Adelman graduated with an Interdisciplinary degree. She majored in Entrepreneurship, Painting, Music and Film. Shortly after, she received a copywriting mentorship with Mark Morgan Ford. Then, she earned her AWAI Verification. Now, Vanessa freelances in the financial direct response industry. She’s been investing since 2016. In her free time, she enjoys books about money and wealth. She loves being with her boyfriend, hunting, fishing and going on outdoor adventures.