Investing in yourself is the first tenet of financial security. When you have a small amount of money to invest from an inheritance or small and unexpected windfall, you might need a way to invest it. Finding a safe way to invest money on a regular basis will also add to your net worth and future security. Money can be kept safe from you or your family, if you need to curtail spending. Investment vehicles offering set time frames and pre-set rates of return will also be the most secure. Follow these helpful guidelines.
Invest in a bank CD for a six-month to two-year term, or any length of term offered in between. A CD is a safe investment because the length of the investment is pre-determined, as is the rate of return. With a calculator, you will know exactly how much money you will have when the CD term is over.
Use a money market account and earn interest on money, while having limited access to the account. The money market account is a form of savings account which limits the number of times you can withdraw money–keeping it safe from impulse spending.
Purchase government savings bonds which are considered risk-free, as the initial investment is guaranteed. The U.S. Treasury Department offers these bonds as well as online tracking tools. The bonds are offered as 20- and 30-year investments and are best if you plan on not needing to cash the bonds until they mature.
Invest money in corporate bonds or bond mutual funds. Having bonds in your investment portfolio provide a safer vehicle than investing in just stocks. Bonds and bond mutual funds tend to go up when interest rates go down and down when interest rates go up. This type of investment can add stability to your overall investment plan.
Put money back in your home to add value. The investments will pay off if you ever need a home equity loan or when it is time to sell your home. The most profitable home renovations according to “Remodeling Magazine” are small kitchen remodels, home siding and bathroom remodels.
Invest your money back into your own education. The higher you level of education, the greater your earning potential is, according to data from the U.S. Census Bureau’s 2004 population survey. A high school graduate average salary is $31,000, with a Bachelor’s degree the average increases to $50,394, about $60,000 with Master’s and around $77,000 with a doctorate.
- Invest in your future, not the profit of credit card companies, by paying more than the minimum due.