Little-Known Small Investments To Put Your Money To Work

Not everyone has the financial freedom to invest thousands of dollars at the drop of a hat. In today’s economy, many people are struggling to make it paycheck to paycheck. Unfortunately, this leaves many of those same people to believe that investing is not for them. However, these are the people that could most benefit from investing. Find out the best small investments to make when you are short on cash, but still want to make your money work for you.

Look For DRIPs

DRIPs, also known as DRPs, are dividend reinvestment plans. A dividend reinvestment plan does exactly what it sounds like it would. These are small investment opportunities that allow all types of investors to buy shares directly from a company. This helps avoid the need for costly brokers or online broker services. Typically, you need only be able to afford the cost of one share to participate. A dividend reinvestment plan is the excellent small investing opportunity for those trying to keep costs down.

Index Funds

Index funds are a great investment if you have a couple hundred dollars to spare. There are several index funds that have an initial investment of just $250 and do not require you to use the services of a company like the Investment Counselors of Maryland. After the initial investment, you can continue to invest more money at your leisure. It will not cost you any additional fees or commissions. This is a great low-cost investment opportunity to get a feel for the market and continue to invest more money when your financial situation allows.

Retirement Plan

If you have not already invested in your employer-sponsored retirement plan, now is the time to do so. This is the first low-cost investment that you should consider. These contributions are taken from your paycheck before taxes. You will not even have a chance to miss the money. Then, you can decide whether or not you are comfortable increasing your contribution each year. As your pay increases, so too will your contributions. Employer sponsored retirement plans are one of the best low-cost investments that everyone, regardless of financial status, should participate in.

Individual Stocks

Individual stocks can also be great small investments for those without a ton of flexible income. Discount brokerage firms like E*Trade or TD Ameritrade allow you to buy individual shares. You will incur a fee for these investments. However, it should only be $5 or $10. This is worth it if you really want to start investing. Buying individual stocks is one of the simplest small investment opportunities for beginner investors to take advantage of before they have to start learning more complicated investment strategies, like how to daytrade.

Fractional Shares

Potential investors can also consider buying fractional shares. These partial shares are cheap investments that allow you to acquire partial pieces of a more expensive share, like those for well-known companies like GoPro or Virgin America. You can buy partial shares from a website like Loyal3 or similar, that sell these fractional stocks from over 70+ different companies. This is an excellent low-cost investment opportunity to earn a little money at a time while you get a feel for the market.

If you are a beginner investor with not much money to spare, finding the best investment opportunities that you can actually afford is really difficult. Thankfully, there are small investments that make it possible for investors with limited financial flexibility to start putting their money to work for them. There are also many more options that just EMR stock and similar. Consider the small investment opportunities listed above to start making your money work for you by investing in the stock market.

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