Newbie investors who earn regular income often face the challenge of finding assets to invest in. You could put your money in savings accounts or your 401(k). However, there may not be returns for years to come. While these types of investments are safe, the returns are low. If you are willing to take on a bit more risk in return for higher yields, here is a list of innovative ways you can invest:
Join an Online Peer-to-Peer Lending Club
Peer-to-peer lending has become popular in recent years, thanks to various online lending websites. P2P lending sites allow anyone to lend small amounts of money to fellow travelers. For example, if you want to invest $50 with an interest rate, a P2P website would be one of the very few options for lucrative yields. Of course, the interest rates you can charge would have to be reasonable. If you charge an interest rate above the inflation rate, you will be earning great returns with limited amounts of capital.
Trade Cheap Stock
Keep in mind early on that this is a risky form of investing. If you want to convert measly amounts of change into hundreds or even thousands of dollars, then consider penny stocks. These low-cost stocks are priced under $5 in the stock market. They are cheap, can generate high returns, but can also be quite risky. If you are willing to do a lot of background research on low-cost stocks, you can effectively earn a lot in returns.
If you can manage not to drain bottles of wine in your home, you can safely invest in wine labels. The allure of wine lies mostly in its age. The older the wine is, the more expensive and desirable it becomes. So, a bottle of wine you might purchase with several hundred dollars today could end up thousands of dollars’ worth in the future. If you know your wine labels, consider buying new bottles for fancy returns in a decade or so.
a bottle of wine you might purchase with several hundred dollars today could end up thousands of dollars’ worth in the future.
Shop for Books
In 1997, readers purchased the very first edition of a brand new title called “Harry Potter.” Those first editions, purchased for a handful of pounds or dollars, are now worth tens of thousands of dollars. Early editions of well-respected and hugely popular book titles are worthy investments that you can liquidate for cash in the future. Like wine, collectible book titles become more valuable with time.
When you are thinking about new ways to invest small amounts of money, it’s important to understand what to avoid as well. For starters, buying a lottery ticket or gambling in a slot game are not forms of investment. Investment requires skill. When you gamble your money, you are betting on luck and chance.
The aim of investing is to grow the cash you already have, not lose it all on a bad bet. Therefore, carefully consider the above options when you start investing. Then understand the types of risks that you can take on and what you should avoid. Never invest in something you don’t understand. Instead of taking on too much risk, it’s best to put your money in a savings account for low-yield returns.