Do you want to become financially independent? Investing is the best way out there to generate earnings. The most important step in investing is getting started. But before investing in something, make sure you have an adequate understanding about it. Don’t go for amazing offers you have no idea about. You need to understand the ins and outs of your investment before signing in.
I have spent a plenty of my time in seeking out where to invest money for good return. From mutual funds, stocks offering dividends, ETFs to bonds and real estate, there are big alternatives and opportunities for investors to grow their money.
For this accomplishment, you have to create a strategic plan and stick to it with patience, determination and persistency. Here are some interesting options for where to invest money for good return. Some of them can give greater return as compared to others but all of them are worth bearing in mind.
Online Saving Account – It is probably one of the best ways to invest your money. Although it’s a least rewarding source but is the safest one indeed. Most of the online saving accounts do not call for a minimum deposit. Therefore taking start with $10 is a great way for getting familiar with bank. As the saving rate for these online saving accounts is low i.e. mostly 1%, so if you keep on investing $10 for ten times, at the end of the year you will get a return of $1. It’s comparable to the returns of CDs excluding the penalties for early withdrawal.
Peer-to-Peer Lending Account – peer-to-peer (P2P) lending accounts are the best provided financial benefits of this modern era. In P2P lending you just loan your money to a peer and get paid the according to the interest rate in return. Through P2P lending, you can get more than 10% interest on your money depending on the undertaken amount of risk. Investing through Lending Club and Prosper is a great idea as they are top P2P players. Especially the Lending Club helps to branch out your investment and the minimum investment is $25. I suggest you to open an account and build it by depositing $10 for a getting started.
Building a CD – Certificate of Deposit has always been a significantly safest way to squirrel away your money. You have to decide a time frame for which you want to invest your money and put your money in a CD with a specific maturity date. Thus you can enjoy a low risk tolerance for about $250,000 per depositor, with a time limit that suits best with your goals as CDs are insured by FDIC (Federal Deposit Insurance Corp). But there’s a snag, you have to pay penalty for accessing your money before maturity date.
CD Ladder – CD ladder is a startling variation of a CD that overcomes the early withdrawal penalties issues and helps to invest with increasing interest. In a CD ladder you divide your money into smaller CDs with gradually increasing the maturity date. For Example, you want to invest $20,000 for 5 years, you just make a CD ladder as following:
- $4000 for 1- year CD
- $4000 for 2- year CD
- $4000 for 3- year CD
- $4000 for 4- year CD
- $4000 for 5- year CD
After one year you will get a return of $4000 plus interest from 1- year CD. Now you can invest this amount according to new (increased) interest rates in a 4 or 5- year CD. Thus it’s a good alternate for investment.
Money Market Accounts – The money market accounts are also insured by FDIC and work almost similar to CDs but offer somewhat less interest. The great advantage of these money making accounts is that you can withdraw your money anytime without paying penalties. Thus you have an all time access to your money and it’s a better way for short term investment.
Starting a Website – Buying websites as an investment is a greater way to get good return. Everything in the world of web is changing so fast. With too many people in online world, too many websites, the mass and potential of this market is remarkable.
You can start your own website or buy an existing website and sell it for profit later. Buying a domain is very easy and cheap, as for $10 you can own a domain through an online platform like GoDaddy.com. You just have to select an easy and catchy domain name and start your own online business.
You can also invest by purchasing an operating website if you are not ready to work for hours for making your website a profitable one. You can go to marketplaces such as Flippa, Empire Flippers and also Payme0 and look there for a good deal. Such established websites make money via Google AdSense, Affiliate Sales, Ad banners, Link Placements etc. and good revenue is assured. Thus you can buy a website for 12 to 36 months worth of income, which means getting your money back in maximum 3 years, getting 33% yearly return. Now you can double your investment by selling this website. You can’t lose money by investing in websites. Although some of them cannot become a big money spinner but there is a great scope ahead.
“The individual investor should act consistently as an investor and not as a speculator.” – Ben Graham
Get started with an investment no matter how small it is but it must be smart!