I am sure that the current financial situation of the world has led you on this search for investment strategies and ideas. By now you must have realized that a monthly salary might never be enough for you to carter for your needs as well as those wants you might have. Well, congrats!! Investment is your first step towards financial freedom.
It is a common belief that you need so much money before you can start investing. What if I told you that there were other important factors involved in investment other than the amount needed to invest? Read till the end and you will not only know how but where to invest your money in 2021!
One thing you do not want to do in investing is following the crowd. If you get caught in the euphoria of putting in your money in a particular thing, then be sure that you are most likely going to lose it.
Here are things you should consider and know before considering an Investment:
1. Knowing where to invest your money:
After having made up your mind to invest, the first thing you want to do is to know where to invest your money. Ask yourself the question; "Where do I want to put my money?". Because investing anywhere will need to nowhere.
2. Understanding what you are investing in:
One common practice is quick investment for quick gains especially. That it gives Mr A. returns does not guarantee you your own returns. This is mostly common with Ponzi schemes. Be sure to ask questions and do your own research before throwing in your money. Of course, it’s your money. The aim is to make profits and not avoidable loss.
3. Having time-based investment goals:
For how long do you intend to leave your money in an investment. You do not want to expect profits in 2 months for an investment that needs at least 6 months to yield good profit. This will definitely lead to losses. A common advice is that you do not invest your survival money i.e. money needed for your daily needs and survival. Before you invest ask yourself how long you are willing to leave your investment. This also helps you get past volatility (price fluctuations). This is common in stocks and cryptocurrencies.
4. Knowing and Understanding your Risk Tolerance:
How much are you willing to lose?? Believe it or not, in investment, as long as you are likely to make profits, you are also likely to make losses. The question is, how much of a loss are you willing to make? Mr A. who invests $500 definitely will not be willing to lose as much money as Mr B. who invests $10,000.
The Best places to invest with little amount of money:
As promised, I will be giving you a few suggestions (Not financial advice) on where to invest your money in 2021 especially those with just little amount mapped out for investment. It is true that the larger the amount of money you invest, the larger your profit is most likely to be. This does not mean that those of us with little money will have to wait to get rich or have enough money before we can Invest and make profit as well.
Here are a few places where you can invest little amount of money:
1. Cryptocurrency:
Yes, you guessed right.
Cryptocurrency has brought with it numerous opportunities and you can invest as
little as $10. After doing the necessary considerations and you are sure of
what to buy and how long you intend to leave your investment, you can purchase
your cryptocurrency via the available apps and exchanges such as Binance,
Kucoin etc. either via the bank card option or the P2P(Peer-to-Peer) option
where you can buy from an individual through the platform. To learn more about Cryptocurrency and how to earn from it, click here
2. The Stock Market:
A lot of people have the misconception that you need as much as $10,000 before you can invest in the stock market. That's not at all true. Although we already talked about your profits being based on how much investment you make, it doesn't completely rule out the fact that you can start with as little as $50. Also, you can along the way add more money into your investment and compound till you have enough money to give you the desired profits.
3. Investment apps and platforms:
Another place where you can invest with as little as $10 - $50 is via investments platforms like Cowrywise and Piggyvest. You can not only save on these platforms but you can also invest via the Nigerian Mutual Funds option on the Cowrywise platform and the Investify option on the Piggyvest platform with very little amount of money.
Now you have gone through this article, you are ready to begin your investment journey with that amount you have always thought to be too small to do you any good. Good luck!
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