How to invest small amounts of cash? The investment is a very general concept, because every man invests, or rather spends money on his children, a car and pleasures. In this short article I will try to tell you a bit about the investment of little money, so that after some time, help to earn some extra, bigger money. But before we begin, let us consider the practical part of the theory. Is the investment a 100% safe in the world today? Can we be sure that, let’s say, by investing $1000 we’ll actually profit? Before the investment will be made in one of the financial instruments (stocks, bonds, mutual funds, forex) must be resolved the problem of selecting the optimal mutual agreement – the relationship of three values: the risk (or its inverse – certainty), profitability and liquidity.
The problem is that each of these values (attributes) specified, has the negative impact on others. For example: high liquidity is generally a symptom of low profitability and low profitability is associated with a low risk. Risk is the possibility of losing some or all of the capital or the payment for its lending in part or in its entirety. Yield is the amount of income from capital lended. Liquidity is the ability to turn a quick and favorable exchange for cash. Cash is the most liquid measure.
Even if you want to invest a small amount of cash then you should expect and try to carry out your financial investment so as to:
– achieve the highest possible profit,
– reduce the possible risk.
Profit and risk are relative to each other. The greater the risk, the greater the profit. The lower the risk, the lower the profit. So it is a relationship quite frail for you as an investor.
Internet network is a place where millions of dollars flow every day. Of course, we can come across of scammers and people with their alter ego, but in most cases, the Internet proves to be an ideal place to earn and invest money. Already today it’s possible to invest money in principle, without leaving your home. Through internet you can put a deposit in the bank, open a brokerage account to buy and sell at the stock market (here the entry threshold may require investing at least a few thousand dollars) and so on. You can also try to make money on the internet, rather than investing. And you can make money in several ways, but most of the benefits are thanks to participation in partnership programs. Their popularity lies in the fact that the consumer, or an individual enrolling in this program may, after earning a fixed amount, transfer the virtual money to his bank account without any problems. Especially young people appreciate this facet of affiliate programs. But what exactly is the affiliate program? How to invest small amounts to reap big profits later?
Do not forget that we are creating Internet – Internet users. It is thanks to us, websites generate a large number of visitors, and can make money. We should also have something to take out of this. By subscribing to any affiliate program what you do is simply promote some products, for which potential sales you get a commission. Often, you only need $100 of investment to set up your online page (hosting + domain) to be able in the future, with a little work involved, earn the same amount, in a week or maybe, even, a day. For detailed description of the affiliate programs and to explain their mechanism more extensive tutorial might be needed. In short, I can, however, say that it is one of the best, but not the fastest ways of increasing your household budget.
Do not be afraid to invest small amounts of cash, starting in 2015. You should start from just placing money in savings account. It is true that you won’t make much, but a 2 or 3% return on investment after a month or two is guaranteed. It doesn’t hurt to try, because what do you have to lose? Bank deposits are covered by the guarantees of the Banking Fund, so this is the safest investment possible. You can only lose your precious time if eg. instead of putting money on savings account you’d decide to learn and build your website from scratch focusing on making money in affiliate programs. But there is a lot of time, and the knowledge learned from the activities on the Internet can be invaluable in the future.