Ever thought of living the dream of being your own boss while enjoying other activities? Making more money with the savings becomes easier, but also necessary. As you read on, you will surely come up with an idea or two that will make you decide to start and stop wondering… Where to invest with little money?
what is an investment
Let’s start with the simplest: define what is an investment. Basically, investing is about investing your money in projects or businesses that will allow you not only to get back what you invested, but also to earn a return on your investment.
Currently, using your savings to make more money (i.e., invest) has become more common and easier than we can imagine. Because there are several ways to generate returns on your current money. Best of all, many of these options adapt to your capabilities.
importance of the investment
The importance of investing is very simple: increase your material wealth to achieve economic stability that will allow you to live the lifestyle you desire. The goal, if you’re wondering where to invest my money It is very important because you are certainly looking to increase your income and there are many investment opportunities that involve high risk or require knowledge of economics. Don’t worry! You can learn to go slow and invest little money with little risk of loss.
💡Type: When you think of investing, try to follow the saying of Don’t put all your eggs in one basket. Better pay attention to invest in different options. This reduces the chances of losing all your capital.
There are a variety of companies that you can start with little money. It depends only on you to achieve it. Choose the activity that makes you happy with what you do. In such a changing world, it is important that you bet work your moneythat generates returns for you and your future.
Finances are essential for you to live as comfortable a life as possible. The changes that many of the reforms affecting pensions and retirement have undergone have been drastic. It is in your hands to generate what you need to live peacefully without worrying about money.
Where to invest with little money?
If you’ve come this far, it’s because you’ve made a commitment to grow your income. It’s about time you got to know just a few of them Options to invest in with little money.
if you ask yourself Where can I invest my money? One of the first options could be the Federation Treasury Certificates, also known as Cetes.
If you have never heard this term, you should know that these are certificates that the federal government makes available to you in return for a loan so that it can raise any funds and carry out projects of public interest. That is, you lend money to the government for a period of time and receive profits on that loan.
At the end of the agreed period, which is usually between 28 days, 91 days, 162 or up to 365 days, you will get back the amount you lent plus the interest generated during this period. Cetes are a great option as apart from being safe they are very cheap. A Cete costs $10 and you can invest anywhere from $100 to MXN 10,000,000.00.
As we have already mentioned, one of the advantages of Cetes is that your investment is very safe because the risk of fraud or loss of money is very low since you are lending your money directly to the government and not the bank, to an insurer . , to online lending companies or to a pawn shop or value etc.
2. Mutual Funds
Another way you can invest with little money is mutual funds. This consists of investing your savings with a group of people who, like you, wish to expand such investments with shares in the national and/or foreign market, in order to access better opportunities, from low-risk investments to higher-risk ones.
Within mutual funds, as an option to invest in with little money, there are variants of it.
The term is usually 1 to 3 months. This type of mutual fund can be your first test to make money in a short period of time, although they usually have lower returns.
However, it can be ideal to generate income with your money that you had not planned and this gives you the opportunity to start something new even with little money.
With this type of mutual fund, you can have your money on a daily basis.
Medium-term investments are characterized by the fact that they increase the achievable return due to their term. They typically range from one to three years depending on which financial institution you do this with.
These types of investments typically use fixed income assets. It is also the middle point between the security of the investment but the increase in profits.
They have a term of three years and are therefore used to invest in funds that generate higher income, such as dividends or fixed assets that offer a return. These types of offers are designed for aggressive traders who are not afraid to invest.
In addition to the areas of application in the time of Investment funds There are other classifications and it is important that you take them into account as it depends on how risky the investment is.
It is the effort that is made to invest in different portfolios. Particularly in bonds issued by governments (local, state and federal). These savings funds move depending on market conditions. Therefore, the issued bonds can also come from banking institutions or private companies.
With these, risk begins to increase as investments are made into higher risk assets. An example of this is the shares of a publicly traded company. These companies can be national or international.
The also known FINCAs (Capital Investment Funds) are those investments where your money flows into the financing of projects or company operations.
3. Promissory Notes
One of the ways that you can really invest in with little money is promissory notes. And besides, we believe it’s one of the easiest ways.
How does a promissory note work? This is one of the investment tools that will allow you to grow your money with very, very little risk. As a rule, the term, which can be between one and 364 days, is agreed upon when the contract is concluded. The rate of return is also determined at this point.
It’s like extending a loan to a friend or family member and then charging interest. It works the same way, but it’s recommended that you do it with a banking institution instead that commits to returning not only your investment but the return on it as well.
In general, the amount with which you can start these investment mechanisms is very small. There are banks where you can perform these actions from 2,000 MXN.
Don’t forget that with all these types of investments, the more money you invest over a longer period of time, the bigger profits you will make.
As we mentioned at the beginning, to have a peaceful life without money worries, it is very important to foresee the future.
And without a doubt, savings funds are a way to invest with little money.
Retirement Funds or now also known as Afore (Administradora de Fondos para el Retiro), are future investment mechanisms. If you work and contribute to the IMSS, it is very likely that your company is contributing a monthly amount, you are giving as much (even if you don’t know it) and the government a little bit more. This means your pension money is managed.
If you can go wrong with this type of investment, then feel free to stick with what your work yields month after month. The idea is that you can make voluntary contributions to get higher and better returns.
Where are these returns coming from? Well, there are managers who invest their retirement funds in institutions called Retirement Fund Investment Companies (SIFORES).
Besides the above, there is another type of fund where employers offer an option to encourage their employees to save. It works like this: Every two weeks or months, an amount of money is deducted from the employee’s payroll and the employer contributes a percentage. At the end of the year, the worker receives the amount deducted from his payment, plus his company’s contribution, which allows him to double the amount of money.
This option can only be used if the company offers it as a benefit for its employees and it is very similar to the savings account.
companies with low investments
If investing in institutions is not your thing, we have another idea for you. How do you want to implement a business that requires little investment and with which you can earn extra money or become self-employed? That sounds good and there are more and more tools that make work easier for entrepreneurs. We share a list of ventures you can implement with little capital.
- makeup or skin care
- New clothing
- second hand clothes
- training or advice
- Youtube channel
- grocery store
Some of the options that we share with you are a great business option because you can buy wholesale and resell with a good profit margin. If you love selling or have always dreamed of having your own business, they are an excellent place to start. Today you can find all kinds of goods at competitive prices if you buy in bulk.
You can make up, shoes, accessories, skin care or even balls of clothes. But if selling is not your thing, you can benefit from your knowledge and skills by giving workshops, trainings or creating tutorials on digital platforms.
The information is now yours you have to decide what to invest in with little money. It doesn’t matter if you decide to start with a financial institution or with your own venture, the most important thing is to remember the importance of investing and diversifying your income. We also leave you this article so that you can have a broader idea of business models on the Internet and decide whether to invest in them.
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