If you’ve got a small chunk of cash that’s not earmarked for any particular purchases, then you might want to think about investing it. This is often the smartest way to grow your money, and avoid having it sit in a savings account for years while hardly growing.
One of the biggest misconceptions about investing is that you need a lot of capital to get started. Actually, anybody with a few pounds to spare can consider different types of investment as a way to build their income. The key thing when you’re only investing a small amount of cash is to make sure you use it wisely.
Invest through a robo-advisor
So called ‘robo-advisors‘ – bits of software that will provide the function of a financial adviser by telling you where to invest your money – have become popular due to the very low barriers to entry.
Many only require around £500 of cash to get started and, since the robo-advisor will be doing the hard work of telling you where to invest, you don’t need any kind of expert knowledge. They will typically ask you about your long-term goals and how much risk you’re willing to take with your money. Once they’ve figured out your investor profile, they’ll buy stocks and shares on your behalf. It’s a great entry into the stock market for the uninitiated.
Top up your pension
Pensions are a form of investment too, and they typically represent very good value for money. After all, cash that you don’t have a use for currently could come in very handy once you enter retirement.
For those who prefer to be more conservative with their money, popping extra income straight into the pension pot could be a perfect option, as it’s relatively low risk. On the flip side, it’s also a good idea for anybody who has a limited pension, as this money will become essential once you’re ready to give up work.
Consider a lifetime ISA
Those who are hoping to get on the property ladder as first-time buyers could consider stashing their cash in a lifetime ISA instead. Save up to £4,000 each year and the government will top it up by an additional 25%, for a maximum bonus of £1,000 per year. This is a pretty impressive ‘interest’ rate by any standard, and may well outstrip anything that you could earn through investment.
Buy into cryptocurrency
Cryptocurrency can be volatile, but for the small-time investor it offers one big upside: if you time it right, then there’s a potential for enormous gains.
Crypto trading is also an option for those with a smaller amount to invest. It involves buying and selling cryptocurrency to try and take advantage of the regular market fluctuations. There are even apps that will analyse the market and tell you the best places to buy and sell. The Bitcoin Traders app, for example, lets you get started with as little as 250 US dollars.
Open an account today to find out more about cryptocurrency trading opportunities, how it works, and the opportunities that are available for making a profit.