Saving and Investing with Little.

Saving and Investing with Little.

1.) Back to the Piggy Bank

That small pig-shaped piece of art always sitting in a corner at the house with just a small opening to drop money into can make a difference in many people’s lives. That piggy bank or cookie jar and all that’s been deposited can be of significant value after a while.  It may seem old fashioned, but this is a great way to save money. For example, by dropping $10 into your piggy bank weekly will give you $480 in a year. You are probably already spending more than this amount on lunch every week. Eventually, accumulated savings can be properly invested There are a few apps that make saving more convenient and provides opportunity to invest. A few to consider are Acorns and Digit Co.

2.)    Direct Reinvestment Plans (DRIPs)

DRIPs allow shareholders to purchase stock from the company without going through a broker. Most DRIPs permit investors to send about $25 to $50 Optional Cash Payments (OCP) to the company to purchase additional shares. OCP enables investors to buy attractive blue-chip stocks when they are unable to afford them. Examples of such companies are; Coca Cola, Johnson &Johnson, and more. First step is to identify a company with a Dividend Reinvestment Plan (DRIP) and note the requirements as some companies may require an investors to become a shareholder of record to enroll.

3.)    Low Initial Investment Mutual Fund

Mutual funds are investment securities that provide opportunity to invest in a collection of stocks and bonds with a single transaction which is great when new to investing. A minimum amount of money between of at least $500 is usually required to get started with mutual funds, however, some allow automatic monthly investment options instead.  A few of the companies that offer these accounts are Transamerica, and T. Rowe Price.

4.)    Automatic Investment Plan (AIP)

AIPs enable investors to make regular payments for a fixed amount of an investment, a technique known as Dollar Cost Averaging. Many employers make this easy by offering 401K with automatic payroll deduction. This can also be done through Roth IRA, a type of Individual Retirement savings account which is tax-free. AIPs allow you to pay yourself first. There are several ways to save and invest out there, but it’s best for each individual to determine a preferable option. It’s important to make smart money decisions.

 

Sources:

http://www.dripinvestor.com/investing-basics.asp

https://www.gobankingrates.com/investing/how-start-investing-with-less-500/ http://www.moneyunder30.com/start-investing-with-little-money

About the Author
Funke Oladele is the founder of Beyond Africa Magazine. An Entrepreneur, Writer, Public Speaker, Health Professional, and Mentor who is passionate about success inspiration and helping people achieve the best version of themselves.

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