One of the big misconceptions that people have about investing money is that you have to be a powerful figure like Warren Stephens of Stephens Inc to be able to invest. The key to investing is understanding the reason you are doing it, and then finding simple ways to reach your goals.
Investing money does not always involve helping a multi-million dollar company release its newest product. Sometimes investing is just a way to reach a simple financial goal, or to affect the lives of others in a positive way. Once you understand what your own goals are and how you want them to be achieved, then you will realize that investing is not that difficult.
Want To Make $1,378 In A Year Or More?
If you want to invest in yourself, then you should consider doing something called the 52-week challenge. It is a savings program that has you put away one dollar your first week, two dollars the second week and so on until week 52 when you put away $52. If you simply put that money into a cookie jar, you would have $1,378 at the end of the year. But why stop there? Why not turn this little savings game into an investing game and make some more money?
A savings account is the easiest and safest form of investment there is, so we will use that as our investment vehicle for the 52-week challenge. Since your biggest deposits occur towards the end of the year, you may not see the type of interest accumulation you were hoping for. But when the year is over, all you did was put an extra dollar per week into your savings account and you wound up making a positive investment for your financial future.
Certificates Of Deposit
If you are like many people, you probably think that there is no way to just deposit money into an investment account and then watch it grow. Well, you would be wrong. You can get a certificate of deposit from a bank, and you never have to do anything at all to have your money grow.
Just like any other investment, a certificate of deposit pays out more during strong economic times and less when the economy is weaker. But unlike many other investments, you know that you will get paid when your certificate of deposit matures. All you have to do is make a minimum down payment in a certificate of deposit and then wait. It is a process any investor can follow, and see through to the end.
Peer To Peer Lending
If you have some money that you would like to invest but you are unsure what to do with it, then why not invest in a small business? Most people avoid lending to small businesses because the process sounds complicated, but peer to peer lending actually makes the process of investing in a business very easy.
All you have to do to get started is join an online peer to peer lending group as a lender, and then you can choose who gets your money. You set up a payment plan with the borrower, and then you get your payments every month. When the loan is paid off, you get your principal back plus interest. It is a really easy way to become a business investor, and you don’t have to know anything about investment banking at all.
Give To Charity
Giving your money to charity is not going to help you to see a financial profit, but it can help you to do some good in your community that will be appreciated by a lot of people. The financial benefit to giving to charity is that you can write the donation off on your taxes. Your only piece of homework is making sure that you are donating to an organization that allows your gift to be tax deductible. To find that out, all you have to do is ask.
After you give your gift, you need to be sure to get a receipt from the charitable organization for tax purposes. When you give a donation to a cause you believe in, then you may find that to be one of the best investments you have ever made.
Put A Little Extra Into Your Retirement Account
You spent a long time and did a lot of research to determine how your retirement account would be set up. If you are happy with the performance you are getting from your retirement account, then why not enhance that performance by putting more money in from every paycheck?
Even something as simple as raising your personal contribution by one percent can add a lot of money to your retirement, and it is an investment you didn’t even have to think about. Sometimes the best investments are the easiest ones to make, and that is especially true for your retirement fund.
If you have been putting off investing because it sounds like too much work or seems too complicated, then now is the time for you to get your finances going. There are simple ways that you can put your money to work for you, and help you get the most from your financial potential.