4 Simple Ways To Invest Your Savings And Reap Profits
Most people have some funds stashed away somewhere in a bank account or secret hiding place, but unfortunately, that is what they remain. Funds stashed away. More often than not, these essential funds end up being misused, while they could have been the key to unlocking your financial freedom. If you have been saving some money from your income, no matter how little and are looking for ways to utilize or grow that fund, these few ideas may help:
Start a side hustle
Side hustles may sound cliché, especially on most investor forums like Investors Hangout, but this is an excellent choice to grow your savings. Start small; for instance, you can buy some tools and offer gardening and lawn mowing services on weekends. You could also start a blog with a professional-looking domain name and website and make some cash through affiliate marketing. You can also visit garage and estate sales, thrift shops and flea markets and get some good-looking stuff to sell on eBay or Craigslist at a profit. The best thing about owning your own business is that you work on your own terms and retain all the profit.
Invest in your skills
This entails finding out about extra short courses that you can pursue to increase your knowledge and hard skills. Taking a class in a relevant computer application, foreign language or sales course may earn you some more cash in terms of a pay hike or a promotion. You can also transfer to a better paying job. All you need is that little cash and the willpower to study on weekends or evenings.
Build a retirement plan
This will work for you if your employer does not have one in place for you, and all you need to start is earned income. There are two plans to choose from, a regular IRA or Roth IRA. For a regular IRA, its contributions are fully tax-deductible while for a Roth IRA, its contributions aren’t subject to tax deductions so long as you are at least 59 ½ by the time you are making withdrawals as pension, and have participated in the plan for longer than five years. Both retirement plans can be held in a brokerage account that offers you nearly unlimited investment options. You can contribute up to $6,500 per year, with which you can build a significant portfolio.
Pay off all accrued debt
This is fundamentally important because your savings aren’t really savings if you have a debt of any amount. Moreover, you should not invest small amounts of money if you have any unsecured debt or have no stash for rainy days. For example, if you own a credit card with a $1,000 balance with an interest rate of 15.99%, and pay off that card, you get to lock in close to 16% rate of return on your cash, for as long as you use it.
Conclusion: These simple ideas will show you how to invest in yourself because this is an excellent way to empower yourself. With just $100, you can have as much as $5,000 to improve your life in no time.