It’s hard not to look at wealthy investors and think, “You’ve got it easy!” For one thing, the sheer volume of their investments means that even a small return can mean big money.
Think about it like this: If a person invests $500,000 into a fund that brings a seven percent return, that’s a $35,000 gain. Someone that invests only $500 into the same fund, though, gets a return that sits around a lousy $35.
It can be frustrating to deal with minimal returns when you’re a limited investor, but it’s reassuring to remember that some of the world’s top investors started in your shoes. They too had limited funds and had to make every penny count for their investments.
Instead of regarding the restrictions on your wallet as a brick wall, use this time to master various markets and truly invest yourself into every decision you make.
Top ways to invest $10K
Although you could invest $500, it would be more productive to focus on saving until you have the ability to put in at least $5,000 or $10,000. Consider where you’d be with the latter: It’s a nice, round figure that gives you some flexibility for various investment alternatives.
If you had only $10,000 to spend, here are the best investments you could make:
Stash it away in a CD. While they may not be the sexiest option, CDs are inarguably one of the most stable investments you can make. You might only generate one or two percent annually, but it’s much better than the lowly return your bank will give you for storing your cash. Plus, CDs are backed by the FDIC 100 percent.
Get in the stock market game. The stock market has recovered nicely and consumers and corporations are once again confident about the overall American economy. So you shouldn’t be afraid to get in the game. If you’re unsure about what to do, websites such as Amigobulls.com can help you with analysis, picks, and ideas.
Pay off debt. This will apply to only some people, but it can be a substantial factor for them. If you are living with debt, the best investment you can make is to pay some or all of it off with the $10,000 you’ve been thinking about investing. If you still have some money left after clearing your debts, throw it in your IRA.
Buy silver. Now’s the time to buy silver. It’s at historically low prices and has nowhere to go but up. In addition, it’s one of the safest investments around, because it can be used as currency if any of the world’s major economies collapses. Currently, you could get somewhere between 500 and 650 ounces of silver for $10,000. And if the experts are right in predicting the value of silver could double or triple in the next five years, that will be a pretty nice return.
Patience is the key
Regardless of what you choose to invest in, never forget that patience is the key.
Financial investing isn’t the same thing as gambling or winning the lottery. It requires careful, calculated moves and a willingness to wait months, years, and sometimes even decades to garner the return you’re looking for.
While $10,000 may not sound like a lot to some investors, it’s actually a great starting point. Use one or two of the above ideas and get your money working for you.