The phrase “you need to spend money to make money” is often true in business circles. If you want to invest money but have very little to your name, this saying will probably make you feel a little disheartened.
Typically, investments such as stocks, shares and savings accounts are associated with large amounts of money, but you don’t need to be super-rich to do so. All you need to do is think carefully about what you can afford to put your money in and what offers value for money.
One of the simplest ways of doing this is to put money into a high-interest savings account. In the UK, an Individual Savings Account (ISA) offers higher interest rates than the norm, with annual limits on the amount you can save. These are ideal for small-scale savings which, in the long term, can deliver a sizeable return.
Exploring the Markets
For those with limited capital, the stock markets can provide a risky yet potentially rewarding source of income. This could mean buying a few shares in a growing company, looking at forex trading or even trading on the fortunes of commodities like gold and crude oil.
Buying shares are the most straightforward way of investing, although an instant return is unlikely unless you act fast. All you need to do is go via a stock exchange or broker before parting with what little money you have. To maximise your chances of making money, research thoroughly to find a business worth investing in.
Building a Business
Owners of small businesses who want to grow may find their attempts restricted due to a lack of funds. For those who are broke, one way of overcoming this problem is to secure a bad credit loan. They can help fund the next phase of growth, a new office, company vehicle or any new technology needed to attract more customers.
If all goes according to plan, paying the loan back would not be a problem. Also, it puts the business in a great position to make more money, leaving more capital to invest with further into the future.
Finally, for the investor with little money to spend, mutual funds are a simple, cost-effective way of trying to make money. They work by pooling your money with that of other investors in a series of stocks or markets, with money made depending on the performance of said stocks.
Investors can buy shares for a small amount of money, knowing that they have capital in a range of different areas. If one stock isn’t performing, its losses are wiped out by the gains made in another stock.