Smart Investment Can Be Helpful at Hard Times


If an individual starts thinking of investing his or her money in a smart way which he or she does not need to use it right away, then investing a few thousand dollars or a couple hundred dollars smartly can help him or her to make the most of it. The following are some suggestions for smart investment:

  • Charity begins at home. Every paycheck you get try to save a few dollars toward your investment. Over a period of time the few dollars adds up which you can save and use it towards your investment. Necessity is a must but luxury is not, try to cut out on your luxuries and manage your cost of living. You can observe a tremendous amount of savings at the end of the targeted time. Manage your bank account in a way that a portion of your salary directly gets deposited into your savings account or investment account from your paycheck.
  • Discipline yourself to manage the debt payments prior to any sort of investment, For Example, If you have a loan to clear which has a higher interest rate, You should always have a high priority towards the commitment of clearing the loan.
  • Educate yourself completely about the subject and area of investment to avoid scams. Make sure that you analyze the options you have towards your investment and get an idea about the quality, financial strength and the potential growth.
  • A lower cost ratio is a smart investment. If you multiply the amount you are investing by 0.2 and observe the trading cost to be more than your investment. It’s always better to wait for the right opportunity and save the money instead.

Areas of Investment:

$50 Investment:

  • Research the Stock Market which offers dividend reinvestment plan or a Direct Share Purchase Plan and look for the companies which has no transaction fee plans which would help you to buy stock straight from the company therefore avoiding the brokers and pay for their commissions. While buying the stocks You can either make a one-time purchase or set up an automatic periodic purchase plan which would help you build a stock portfolio. The only commission you may experience would be the nominal commission or a minimum purchase requirement from the company. The only difference you can find between Dividend reinvestment plan and  Direct Share purchase plan is that you collect the dividends as an additional shares instead of cash.
  • Mutual funds with Low minimum-purchase requirement with an agreement of a direct debit from your bank with a small investment as low as $25 every month from your bank account or a one- time $25 investment which also helps you build a stock portfolio.

$500 Investment:

  • Index funds which tracks the broad market and gives you a decent amount as a pay back to your little investment keeps you at low risk and helps you get the required knowledge of the stock market for the future investment companies.
  • A fixed deposit investment with a considerate interest rate helps you give the value for the money you don’t mind lending it to few small and big institutions for over a period of time.

A smarter way of investment with a little knowledge and patience can get you a much worth to your money and can help you in your hard times.