Money should never be left inactive. All the efforts you have made to earn it become imprisoned on a bank account; or in an envelope, if you are a traditional money saver. Instead of keeping the money, you should try and use at least a bit of it for further investments. Of course, they need to be smart and you should under no circumstances invest more than you can handle. So, here are a few wisely chosen and interesting ideas for affordable investments.
Frugal Investing in Real Estate
The housing market is one of the generators of economic growth. It usually encourages and supports many other fields and businesses, since it demands a wide range of additional services. Knowing that, it seems logical to invest your money into real estates.
For instance, you could establish a partnership with a friend of yours. The major benefit is that you both take part in it financially and have a common goal of achieving business success. This kind of business relationship is great for flipping a real estate. You simply buy a place with the aim of selling it at a higher price.
There is a lot of legal paperwork in every real estate transaction, so you could try to find best deal for conveyancing company that won’t rip you off and keep your investment within the budget boundaries you have set.
Frugal Investing in Stocks
Investing one kind of paper (money) into another kind (stocks) can be a pretty challenging move, but it can really make you double or triple your invested assets over a relatively period of time. Today you can deal with stocks online and you don’t even need a broker. However, you need someone to advise you, at least at the beginning.
Buying stocks worth less than $5 a piece, also known as penny stocks, can bring you a nice profit quite fast. Stock trading in general is a mixture of games of chance and wide financial knowledge. The more you trade, the more penny stock tips and tricks you learn.
Also, you will develop a hunch for this job over a course of investments and years. But comply with your own rules and never get carried away with the potential profits. Chase the ones that are less glittering, but easier to reach; and never invest more than 10% of your overall money, because that amount can be more easily regained. High-percentage investments are a real game of chance.
Frugal Investing in Art
Works of art always keep their value. It goes without saying that paintings painted by great authors are worth millions of dollars. So, if you want your money to be kept in a tangible and safe way, buying pieces of art is a great option. You can collect those works, which is again a nice way of giving your money a shape and form, instead of having a heap of paper that might become worthless overnight. On the other side, you can buy all kinds or artistic pieces (furniture, books, china figures) and sell them at a higher price; very similar to real estate flipping. Of course, the main source nowadays is the Internet, so use the sites that deal with buying/selling art.
The point of earning money is not only spending it and saving it, but also trying to make it work for you. That is the point of investing. But it also hides many traps, because many people want to give their money a higher value through investments. You have to always talk to others, stay informed, list pros and cons and invest only the amount that is easily refundable through new investments.
Nate M. Vickery is a business consultant from Sydney, Australia. He’s into finding various ways of making and saving money. Aside from work he enjoys spending time with family and his fiancée.