If you want to make money, you need to have money, right? It can seem limiting to know you do not have a lot of money in the bank to invest. Do not get discouraged yet. There are a few ways for anyone to earn money, even if they do not have a massive checking account.
I set out to find some great options, those that are the perfect place to start. You also do not have to worry about experience. With this type of low income earner investing, you do not have to have a lot of experience (though education is key to long-term success!)
The best investments for low-income earners have to make money – that is a given. However, they also have to be profitable and worth your time.
Do low income investments exist? You may have some basic options to choose from, like a savings account, but what else can you do to increase how much you earn in interest? There are a number of options for those who want to find ways to invest without having a high income.
Even small amounts of investing can help many. You do not have to invest in big investments, like real estate investing, requiring thousands of dollars out of your pocket.
You also can find solutions that work for your level of risk tolerance or how comfortable you feel taking on risky investments. It can be overwhelming to determine which option is right for you, from exchange traded funds to other types of stock market investing.
To help you, we have broken down some of the best ways to start investing money without having to spend a lot to do so. From simple methods to more complex options, find the right way for you to invest based on what is best for your unique needs – and by all means, choose a type of investment strategy that you are interested in.
When you start investing in things that interest you, it becomes a passion instead of a chore. That can help you make the most out of any of the low risk investments we recommend here.
Table of Contents
- Best Investments for Low-Income Earners
- 1. High Yield Savings Accounts
- 2. Chime
- 3. Series I Savings Bonds
- 4. Aspiration
- 5. Short-Term CDs
- 6. Money Market Fund
- 7. M1 Finance
- 8. Low Initial Investment Mutual Funds
- 9. Fixed Annuities
- 10. Betterment
- 11. Preferred Stocks
- 12. Acorns
- 13. Real Estate
- 14. Employer Sponsored Retirement Plan
- 15. Corporate bonds
- How to Invest on a Low Income
- Eliminate high interest debt
- Use your tax refund
- Avoid personal loans
- Turn to advisory or brokerage services
- Use robo advisors wisely
- Additional ways to build your investments
To determine the best low risk investments, we looked at a lot of information. That also includes the ways you can start investing without having a lot of money to put into the investment strategy.
We also looked at ways that would help you to build a stronger personal finance foundation so that you could build up your wealth over time and open the door for more opportunities later. To determine the best low risk investments, we compared cost, interest payments, after tax income, and a range of investment ideas, including using brokerage services, robo advisors, treasury inflation protected securities, and even free money.
Here is our list of the best ways to invest when you want the very best low risk investments out there. The best investments for low-income earners are sure to not all fit your needs. Everyone is different! Yet, there are plenty of opportunities out there for you to find something that works for you.
Best Investments for Low-Income Earners
1. High Yield Savings Accounts
A savings account? Really? Yes, and in particular, a high yield savings account is going to be one of the best options for many people starting with low income investing. Here is what you can expect from this type of investment.
What is a high yield savings account?
It is not technically an investment. Rather, it is a savings account. What makes it different is that you can get a higher rate of return on your money using this tool than with other types of accounts.
There are a wide range of companies that offer them. They tend to be some of the highest interest rate baring accounts available.
Use the rate table provided by the bank to see which type is best for the amount you wish to invest. Be sure to shop around to get the best overall option for your needs.
Why invest in high yield savings accounts?
This type of investment is ideal because you really do not have any risk. Small investors often need a way to earn without losing money in the process. That is what this type of investment can do for you.
Your account is just like any other checking account or savings account. As long as it is in an FDIC-insured financial institution, you will have financial protection of up to $250,000 per account.
If you want a virtually no risk way to invest and you want to earn without a lot of trouble, start with this type of investment. The only risk here is that inflation will lessen the amount you earn, meaning it may not be worthwhile for those who want big returns.
See Related: Best Banks for Low-Income Earners
When it comes to small investments, Chime could be one of the best options for those that are just starting out. It is not a bank.
It is a financial technology company. Use it to help you create strong personal finance skills over time.
What is Chime?
Chime is a mobile banking service that does not charge users a fee to use it. It provides you with lots of protection, too, including fee free overdraft protection using SpotMe.
It also allows you to get paid early when you set it up. The best feature is that Chime does not have any type of monthly fees associated with it.
Also notable, Chime offers a secured credit card. This can help you to build up your credit score over time, helping to give you more borrowing power over time. There are no annual fees or credit checks, and best of all, there are no interest payments.
Why invest in Chime?
If you are currently spending money on monthly fees for your bank account, especially your checking account, you are wasting money. Chime lets you get all of the same benefits – and a lot of new ones – without spending a lot of money to do so.
Other benefits of Chime include access to a high yield savings, which we have already mentioned as being one of the best ways for small investments to start adding up quickly. You can also count on tools to help you build your credit, send and receive money quickly, and have ample protection over your finances.
3. Series I Savings Bonds
A savings bond is another low risk option for those who are looking for a way to build their wealth over time. It is not the easiest way to earn money quickly, but there are some great reasons to use it.
What is a Series I savings bond?
A Series I savings bond is a type of loan you make to the federal government with the promise of repayment at a later time. A bond is a low risk investment. It is also adjusted for inflation, which means it can help you to see profits and growth even when you are in a period of high inflation.
With a bond like this, which is available through the U.S. Treasury Department, you are able to purchase it for a flat fee. As long as you maintain the bond – which means not cashing it out too soon – you are able to cash it in for the full value at a certain time. Bonds have a fixed rate, and that means that you are going to have no risk to worry about with this investment.
Why invest in Series I savings bonds?
There are a few reasons why those looking for small investment ideas should consider bonds like this. There is no risk with them because they come from the U.S. government. They are as safe as possible.
You can invest in as many as you want at any price point that works for your needs. As a result, you do not need a lot of money to get started. You are not likely to earn a lot of money with them right away, but if you want long term growth with no risk, this is one of the best options to consider.
See Related: Ways to Start Investing in Low-Income Neighborhoods
Are you interested in sustainable investing? Consider how Aspiration could work to help you meet your financial needs and goals.
It is a type of way to invest and manage your money with all of the typical financial institution benefits. What makes it different is that 10% of its income goes to support environmentally friendly and people friendly organizations and businesses.
What Is Aspiration?
Aspiration is a type of banking tool. It is not a federally insured bank. Rather, it is a financial firm that allows you to use its cash management tools.
It uses a number of relationship banks – banks it partners with – to help you to manage your funds. Your money in your Spend and Save accounts are still protected by FDIC protections, or if they are securities, they are protected by the Securities Investor Protection Corp.
Aspiration offers features like bill pay, mobile check deposit, debit cards, and rewards programs where you can earn cash back for the purchases you make if they fall in line with the mission-driven objects of the organization. To make money using Aspiration, tap into its high APY earnings. If you put money into these savings accounts, you could earn a much higher rate of savings compared to other companies.
Why invest in Aspiration?
If you are interested in sustainable investing, which is also commonly called ESG investing or environmental, social, and governance investing, this is the route to take. You can choose the Redwood Fund or the Redwood IRA, for example.
With just a $10 investment to get started, you can start making a difference. These funds participate in ethnically diverse investment groups as well as those that address climate change and gender diversity. Read our full Aspiration review to see if the platform is right for you.
See Related: Aspiration Bank vs Chime: Which is Best?
5. Short-Term CDs
A short term certificate of deposit (CD) is another avenue for investing money. If you are looking for small investments that make money with minimal risk, you will appreciate how CDs work. They are some of the easiest ways to invest as much or as little as you like, with very little risk to earn money.
What Is a short term CD?
A short term CD is money that you put into a specific account for a specific period of time. This could be as short as 3 months or as long as 5 years.
The funds are in an FDIC-insured account. As long as the money remains in that account for the stated amount of time, you earn the promised rate of return.
You will need to compare a number of organizations and find the best rates available, as this can range widely. If you decide that, after the initial period, you wish to do so, you can reinvest those funds into another CD, again growing the value of your money. You do not have to have your money locked away for a long time, though.
Why invest in a short term CD?
You can choose longer term CDs as well as short term, but the benefit here is that you can still have relatively easy access to your money if there is an emergency. It does not take the place of an emergency fund, but it is there if you have to.
Some CDs pay more than high yield savings accounts. The difference is that CDs do not require a large amount of money to open them, which means you can often get started right away.
See Related: How to Save Money When You Are Broke
6. Money Market Fund
Open a brokerage account with an investor and start investing in a money market fund. This is one way to start saving money with a bit more risk involved, and that could mean a better rate of earnings in some situations.
What is a money market fund?
A money market fund is a type of fund made up of CDs as well as short term bonds and other types of low risk investments. All of them are grouped together to increase the earning power, and this helps to diversify the risk involved.
With a low minimum investment, it is very easy for you to get started with them. Most often, you can access money market funds through a brokerage account or a mutual fund company.
This option does have some limitations. The bank will tell you what the rate of earning is, and there are some limitations to what that is.
Still, this is one of the best low risk investments because you are likely to see the rate of return you desire, and there is not a lot of loss likely to occur. The low minimum investment and the simple investing strategies make money market funds like this a good option for many people.
Why invest in a money market fund?
Though these are not mutual fund accounts or a stock market investment that will pay dividends in high figures, it is a good way to start an investment portfolio and minimize it. A money market fund is easy to open and does not take a lot of money to get started. If you do not want to lose money but want to invest in a more lucrative fund, this could be the way to go.
7. M1 Finance
M1 Finance provides a wide range of options for investors. You can use the company to help you with investing, as well as borrowing and spending wisely. It is a bit different than other types of accounts but offers a lot of opportunity for those looking for a diversified portfolio and retirement investment options.
What is M1 Finance?
M1 Finance is a way to invest in a custom portfolio with a range of tools. It provides an automated investment tool that allows you to borrow and spend alongside your investments. There are 60 pre-built portfolios available for you to choose from, which are called pies.
You can also use this tool to build your own investment portfolio with your own investing strategies. If you want to automate your strategy and incorporate personal preferences, this is a good option.
When it comes to investments for low income earners, you do not always have to focus on low risk investments. With M1 Finance, you have the ability to build your financial portfolio around the risk level that works for your needs.
That means you can choose what works to meet your risk in that timeframe, too, making changes as you need to. Another key benefit is that you can create a very diversified portfolio, investing in a wide range of investments to help you meet your specific objectives.
Why invest in M1 Finance?
M1 Finance offers numerous portfolio management customizations, which makes it a great tool for those who want options. There are no fees for training or for your account management. You also do not have to invest a lot to get started.
It is just $100 to open an investment account or $500 for retirement accounts. You can then invest in the types of investment accounts you wish, including options such as individual stocks, REITs, and ETFs. You also collect interest on cash balances.
See Related: M1 Finance Review: Is It Legit?
8. Low Initial Investment Mutual Funds
A lot of mutual fund accounts have a much higher threshold than other types of investment methods for those just starting out. However, there are a few low initial investment mutual funds that can work for you. Seek out companies that offer this option and compare costs and structure to determine which could be the best for your needs.
What are low initial investment mutual funds?
A mutual fund is a type of investment security. You put money into a portfolio, or a group, of stocks and bonds with each transaction you make.
A low initial investment type of fund does not require a huge initial investment, which is a good thing for many first time investors. Most of the time, you can open these with an investment of between $50 and $100, though some companies may have account minimums you need to maintain over a period of time.
What makes this possible is that they often require automatic monthly investments. That means that you open the account with $100, and then you elect to have $50, $100, or another amount automatically invested each month by the organization. This is a very common feature with this type of account, but it can be beneficial because it allows you to learn how to invest with low income over time – when you invest consistently like this, you end up learning how to become a strong saver, and that means that, over time, you invest money more consistently and readily.
Why use low initial investment mutual funds?
This is not an emergency fund. You need to have enough money to leave in the account long term so that it can build value for you.
However, the benefit here is that you can invest money in a wider selection of companies and industries, helping to diversify your portfolio a bit more. This method also can be set up with your payroll company, in some cases, or through mutual fund companies that allow you to then make it automatic and effortless.
9. Fixed Annuities
If you are thinking about tax benefits and how to generate income for your retirement years, you may want to consider fixed annuities. This could be one of the best ways to invest in the future without having to put a lot of money into the process.
What is a fixed annuity?
Fixed annuities are a type of contract that you will make with an insurance company. They pay out a certain amount of income over a specific listed time period For the upfront payment you make. There are various ways annuities can be structured, but they typically will have a fixed period of 20 years or may last until the policyholder, or client, dies.
With these investment options, the contract promises to pay a specific amount of money on a specific term, usually one time each month. This continues over a period of time, such as to help you to earn income during retirement.
Annuities typically require you to make a lump sum payment to start them. You may be able to pay into it immediately and then start receiving the payout right away or pay into it over time.
Annuities sometimes offer a range of benefits that includes guaranteed payouts and even a death benefit. If you want riskier investments that have bigger returns, look elsewhere. For consistent earnings, consider this option.
Why invest in fixed annuities?
Unlike treasury bonds or savings, a fixed annuity will pay out an income over a period of time. They also have tax benefits since your income grows on a tax deferred basis. That means you do not pay tax on it until you start cashing it in.
It is important to get some investment advice on these to help ensure you know how much income the fund will generate and how well that works to meet your specific needs. Also, consider the benefits based on the type of income you are likely to have in the future.
Betterment is a financial advisory company that provides a way for you to invest digitally. It can help you to save and invest rather easily, and this is one of the cheap investments that does not require a lot of money upfront to get started.
What is Betterment?
Betterment is a robo-advisor. It provides customers with two options. That includes an automated portfolio management tool that allows you to get started with just $10, or you can choose the Betterment Premium service, which provides you with access to certified financial planners.
The second option requires an investment of $100,000 to get started. However, for most people, the Betterment Digital tool is the route to take.
Betterment provides you with several investment options, which means you can customize your portfolio to fit your specific needs. It also has a low investment starting point which means you can likely get started right away.
The core portfolio is made up of 12 asset classes, all of which are ETFs. The organization also has four cryptocurrency portfolios available for investors as well.
Why invest in Betterment?
Betterment does not have an account management fee. It also does not have an account minimum to maintain, and you can get started with just $10. You can invest in individual and joint non-retirement accounts, Roth and traditional IRAs, SEP IRAs, rollover IRAs, trusts, and other account types.
You can also look at the past performance of the account and the earnings to determine which option is best suited for your needs. For those who are looking for a way to get started and want numerous portfolio options, this could be the right choice. While it does not offer direct indexing, it does have a lot of goal-based tools to help you with getting started.’
11. Preferred Stocks
If you want to invest in the stock market, perhaps you are unsure how to get the type of goals you have with how much you can put into the fund. Consider preferred stocks and how these types of investment accounts can work for many people who need less risk and low initial investment.
What is preferred stock?
Preferred stock can seem like some type of special offer – just for you because you are the favorite. That is not the case. Rather, preferred stocks are considered lower grade bond-like investments.
They are not all that much like the stocks you find on the traditional stock market. However, their value will range widely, and they can be somewhat volatile when the market falls or in situations where interest rates increase.
The benefit of this type of investment is that it makes regular cash payouts to account holders. For example, a company will issue preferred stock as a way to suspend the dividend in some cases.
If the company cannot or does not want to pay dividends, those with preferred stock have a bit less risk. That is because the company must pay dividends on preferred stock before it will pay out any type of dividend on common stocks.
Why invest in preferred stock?
There is no doubt that you will need a higher level of risk tolerance with preferred stock than with a bond. However, there is more opportunity to earn a larger amount using this type of stock. You can purchase as much as you want, with the initial cost really dependent on the company that you buy into.
If you want to earn more than other types of cheap investments, this is often a good starting path for investing in the stock market. You can also invest as much money as you want. There are typically low fees, too.
See Related: How to Buy Stocks Without a Broker
Acorns provides you with a way to invest, earn, and grow money. You can use this micro-investing company that offers robo-investing to help you to invest your money in a way that works for your needs.
What is Acorns?
Acorns is a type of spare-change savings tool. It works much like a cash back rewards program works, and that means you can invest your money easily. There are some management fees associated with it, but it is still very affordable and easy to get started.
Using this tool, you are able to earn cash back from the purchases you make. It works with over 450 retailers across the country.
You can also round up the amount of money you invest. The entire process, then, is managed through a robo investing portfolio.
Here is how it works. You use your linked card at a retailer. Acorns works to round up the amount of money you are spending and deposits the funds into your investment account. This makes it easy to start saving money and investing.
Why invest in Acorns?
For those who have no risk they want to take, Acorns works very well. It is not complicated in any way. Though there are some investment fees you have to pay over time, it is very simple to use this tool.
The key benefit is that it does the investing for you automatically, which means you do not have to worry about depositing money into your accounts yourself. That type of consistency may help you build your portfolio of investments sooner. There is limited overall earning with this investment option, but for those who want a seemingly easy way to invest, this is one of the best options out there.
13. Real Estate
You may not be sure how you can invest in real estate when you are just getting started, but property is one of the best ways to build equity and savings, as a result, over your lifetime. It is important to consider the various ways you can get started in this type of investment method.
What is real estate investing?
One of the ways you can invest in real estate is through a Real Estate Investment Trust, or REIT. This is a type of fund on the stock market that you will pay into.
The companies in the fund earn their income from real estate. This is a much more passive method for investing in real estate than the second option.
That second option allows you to purchase real estate and then hold it long term to build up the equity. You could sell it in some investment strategies, which could help you to cash in on that equity.
However, one of the best basic personal finance investment tools you have is to purchase a home to live in. In this type of real estate investing, you are able to borrow against our equity whenever you need to do so, usually with a loan that has a very low interest rate and risk.
Why invest in real estate?
No matter which method you use, there are a few key reasons to consider real estate investing. First, there is a lower level of risk associated with property since the value of property tends to rise over time.
Second, you are not going to get free money to buy a home, but you could obtain low interest rates on FHA and VA loans if you qualify for them. This could help you to get into the home without having to have a large down payment and very little money upfront.
If you choose to go with REITs, you can choose how much you wish to invest. You can also feel a bit more protected here since most REITs can grow in value over time with pretty good confidence. You can also look at the past performance of the REITs to determine which one is the best fit for your specific needs.
14. Employer Sponsored Retirement Plan
As you begin investing, one of the first things you need to do is look for free money or any extra money you have to put into financial products that can help you earn more over time. One way to do that is with an employer sponsored retirement plan.
What is an employer sponsored retirement plan?
Here, your employer opens a retirement plan for employees. There are various configurations and options, including those that offer tax free withdrawals and others that allow you to invest in tax deferred strategies.
The money goes into the account and remains there long term until you reach your retirement date, which the government sets based on the year you were born. At that time, you can start taking payments from the account to help you fund your retirement.
Why invest in these retirement plans?
Depending on your goals and the investment ideas you have, you may want to start putting money into these types of investment strategies at a young age. Often, the more you put in at a younger age, the sooner you will be able to retire. More so, the funds typically grow in your account with tax advantages.
For example, in some situations, you will pay taxes before the money goes into the account. In that case, you may not have to pay taxes later and instead benefit from tax free withdrawals.
Other accounts allow you to invest money without paying taxes upfront. You pay them later when you start to take withdrawals.
A certified financial planner can offer more insight into which type of these accounts may be best for you based on the financial products available as well as your retirement date and goals. The key here is that many employers provide matching investments.
If you put money into the retirement account, they may match that amount. That allows you to get extra money that is going to add to your retirement account over time. There’s no reason not to tap into this resource.
By the way…
If you do not have an employer that offers this type of account, consider an individual retirement account or IRA. An individual retirement account is one that you can set up and make payments to with your paycheck each week or every month. This allows you to get a lot of the same benefits of an employer sponsored plan and helps you save for retirement even if your employer does not offer them.
15. Corporate bonds
Another type of low risk investment is a corporate bond. It is one of the easiest options for those who want to put very little money into their investment strategy and still see growth.
What are corporate bonds?
This type of bond is just like government bonds. The difference is that a company will issue them rather than the government. It is not government debt, then.
The company issues the bond with the promise to pay a certain amount of money at a specific time. As long as you keep the funds in the account, you will earn that amount.
There are various types of these bonds available. Some are low risk, which are often from more profitable and larger companies.
Others are considered high yield bonds or junk bonds. These are the higher risk option. The interest rates on these junk bonds tend to be a careful consideration, but there is some risk that the company could default and not make payment.
Why invest in corporate bonds?
If you want to choose a way to invest that allows you to support companies you like and you want more investment power than you may get otherwise, consider the benefits of these bonds. You have the chance of earning more with these bonds, but at the same time, there is added risk to them.
You can also choose bonds that mature within your time frame goals, with longer term bonds more impacted by interest rates. You can also control some of the risk by choosing a higher quality bond from a company that has a more stable foundation. You also have the ability to have more versatility with these in that you can diversify through various industries if you would like to do so.
See Related: How to Buy Green Bonds (Step-by-Step Guide)
How to Invest on a Low Income
We have worked through a lot of information – which one of these options is interesting to you? You do not have to choose just one. The best way to reduce some risk and increase your opportunity to do well may be to put money into more than one.
Still, you may have a common question that many people have – where do you get the money to make these investments?
As you learn how to invest with low income, you also have to realize ways that you can cut back and make better financial decisions so that you have more money to use towards growth. In other words, you want to make sure every dollar you earn is going to be used in the best way possible to grow your wealth over time instead of costing you money in the future.
There are a number of fantastic ways to do just that. Here are some ways to get started.
Eliminate high interest debt
High interest debt is costing you money. If you have a credit card with a 20% interest rate, but your bank account is only earning 2% interest, you are losing 18% interest by having money in that high interest debt instead of working to save you money. It certainly is not easy to eliminate high interest debt. However, you can do so by:
- Not using credit cards to make purchases
- Creating and maintaining a cash based budget
- Working to pay down your debt over time
Over time, you will reduce your costs and have more to help you start investing in a variety of the methods listed above.
Use your tax refund
Many people get a tax refund each year. This is the perfect way to start investing. Instead of putting it towards the purchase of items for around the home, start investing with it instead.
You can use your refund to open an index fund or dividend reinvestment plan. You can also use it t help you with starting on dividend paying stock investments with a bit of help from a robo advisor.
The bottom line is that your tax refund is a powerful investment tool for you because it offers a bit amount of money at one time. Keep the following in mind:
- Use a tax refund to open an investment account that interests you.
- You are not counting on that money for your budget right now, so it’s an extra tool for building savings.
- Use it to help fund your emergency fund if that is going to help you to avoid using credit in the future when an emergency occurs.
Avoid personal loans
Many people find themselves with personal loans, which typically have very high interest rates and low monthly payments. You may have needed to borrow that much money before, but now that you have this loan, it is costing you money.
Most of the time, these loans are unsecured, which means there is more risk associated with them. That makes them expensive and sometimes hard to pay off. If you have personal loan balances, consider these tips:
- Use your refund to pay them off
- Avoid taking out new loans to pay off old loans, which is common with short term loans and payday loans (which are high risk and expensive)
- Pay off those with the highest interest rate first and use the snowball method of debt repayment to continue to reduce what you owe
Turn to advisory or brokerage services
Before starting investing, you need good advice that is customized to fit your needs. That is where an advisory or a brokerage service can come into play. They can offer you the investment ideas you need to grow your best possible income during retirement, boost your wealth during your time, and minimize costs involved, like income taxes on your earnings.
Keep in mind that the opinions expressed here are just that – opinions. The opinions expressed by your advisor are going to be tailored to your specific needs, including the interest rate on the loans you have, the type of dividend paying stocks you are interested in, and your overall budget.
That type of customized investing support is well worth it. Keep the following in mind:
- Choose those services that are upfront about all of the options available to you for investing – you want a wide range of investment ideas
- Start investing at a point where you are comfortable. If your advisor wants you to invest more than you free comfortable with, find another provider.
- Always consider the costs involved, including the account transfer fee, account management fee, and other costs for using their service – is it a percentage of what you earn or a flat fee?
Use robo advisors wisely
Robo advisors are one of the best tools for those who do not have a lot of experience with investing but want to dabble in the markets. These services are designed to make investing easy. You create a profile and set up the risk level you are most comfortable with for your investment.
You invest as much as you want. The robo advisors then go to work for you, creating a plan to help you earn as much as possible with your investment.
You do not have to watch the markets or make adjustments during the process. The robo advisors understand your risks and will make adjustments as the markets change, helping to minimize your risks.
The key benefit to robo advisors is that they are easy to use and can do a lot of the work for you, automating the investment process. Keep the following in mind:
- Set up routine investments, like monthly contributions, to help ensure that you are consistently building up your investment.
- Know the fees associated with the robo advisors you are considering. These will range widely from one to the next.
- Not all robo advisors offer the same types of investment methods – compare them to find what works best for your needs
Additional ways to build your investments
There are so many ways that you can turn your money into more money – you just have to find the methods that work the best for you. To help you, here are a few more ways to put more into investing.
- Earn a bit more: Take on a part-time job, a gig position, or remote work. Adding more income to pay down your debt and increase your investing power will pay off in the long term.
- Make monthly contributions automated. The more you can automate the process, the better. Choose a bank that will automatically move money from your paycheck into your investment accounts. That way, you can save consistently without thinking about it.
- Maximize your income tax. If you are getting a refund each year, that could be because you are paying too much in income tax during the year. Reduce the income tax you pay in during the year and put that extra money into an earnings tool for you – any of those listed here will help you.
- Use dividend reinvestment plans: Whenever you are paid a dividend from any of your investments, put that money right back into investments. That way, you are going to continue to build over time.
- Choose robo advisors wisely. Over time, some robo advisors may earn at a better level than others. Consider paying close attention to which of these tools – and the new ones that are released – can provide you with the best ability to earn and achieve your financial goals.
Any money you can save, put into an investment plan for yourself. Of course, you will want to pay down your debt first. You also want to be sure you have money aside for emergencies.
Then, work diligently to continue to fund any of these investment strategies, even if you do not have a lot of money each month to do so.