How to invest with little money?

Although most people would like their funds to generate income, only a small percentage decide to start investing without fear of difficulties and restrictions. In fact, earning additional income from savings is quite easy if you know about some of the nuances of finding optimal investment amounts, the best alternatives, some precautions and professional tips.

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Optimal investment amounts

If you are thinking about how much to invest, you should evaluate your typical income and start from 10% to 30%. If you live alone and provide only for yourself, then even 30% is unlikely to affect your usual lifestyle. If you have a family, children and outstanding loans, you should not invest over 10% so as not to restrict your basic needs.

Best investment alternatives

Now let’s figure out what is the best way to invest money. In fact, there are a lot of options, but not all are suitable for beginners who are ready to put in only small amounts.

Investing in startups

With the help of startup exchanges, startup creators can find the capital for the implementation of their projects, and investors are able to profitably invest their money, helping other people’s ideas develop. Each user can evaluate the available range of investment opportunities, estimated terms and then choose the most suitable one for themselves. Here are the most popular platforms:

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  • Napartner
  • Startupnetwork
  • Crowdfunder
  • Kickstarter
  • Indiegogo
Assets on the Binomo platform to invest in 

Considering this way to invest, note that the amounts and terms can be very different, depending on the type of business. However, the future share of the investor, as a rule, varies from 10% to 80% of the anticipated income.

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Investing in bank deposits

How to begin investing? Well, a bank is the most proven, reliable and least risky way to start. It essentially entails entering into an agreement with the bank. It not only stores your funds, but also charges interest depending on the total amount and saving time. Income can be obtained after the expiration of the contract. You can start with almost any amount — it’s the best investment for beginners!

Investing in P2P lending

A risky, but still an attractive alternative  for where to start investing with little amounts is P2P lending (issuing loans to individuals). So, you can turn borrowing funds into a regular investment activity. 

In order to use this way to invest money online, you need to confirm your identity with a personal service certificate. Don’t forget the risks of non-returns.

Where NOT to invest?

There are many ways how to get into investing that attract people with high returns and quick profits. However, the only free cheese is in a mousetrap. Try to avoid hyped-up projects, financial pyramids and sites that share significant returns per month, without having a clear concept of what makes these profits possible.

A few important final tips

Investing even small amounts requires compliance with measures that increase the likelihood of making a profit. Of course, it is impossible to completely eliminate the risk, but following the tips from the professionals can significantly bring the investor closer to the goal:

How to invest in corporate bonds
  1. Invest only with free funds that cannot worsen the quality of life.
  2. Clearly define the purpose of your investments.
  3. Choose one strategy and follow it — you must know exactly how much and how fast you want to earn. Also, if the strategy says that it is time to sell an asset, don’t try to hang on to it further under the influence of your emotions and try to avoid losses — this strategy often ends in losses.
  4. Do not forget to learn and develop: for example, learn all the new tactics of how to start investing in the stock market, precious metals or other industries that seem promising.
  5. And, of course, don’t forget about reinvestment. The secret of long-term profits is compound interest. That is why it is better not to spend your additional income, but to invest again, expanding your investment portfolio.
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