Have you ever thought of living the dream of being your own boss while enjoying doing other activities? Using your savings to generate more money is becoming easier, but it is also necessary. If you continue reading, you will surely get one or another idea so that you decide to start and stop wondering… What to invest in with little money?
what is an investment
Let’s start with the simplest: define what an investment is. Basically, an investment is about using your money in projects or businesses that allow you not only to recover what you invested, but also to obtain a profit on your investment.
Currently, using your savings to start generating more money (that is, investing) has become more common and easier than we could imagine. Since there are several ways to generate returns on your current money. The best thing is that many of these options adapt to your possibilities.
Importance of investing
The importance of investing is very simple: increase your material assets to achieve economic stability that allows you to have the lifestyle you want. The objective when you ask yourself where to invest my money is very important, because you are surely looking for your income to grow and there are many investment options that have high risks or require knowledge of economics. Don’t worry! You can learn, go slowly and invest little money with little risk of loss.
💡Tip: When you think about investing, try to follow the saying of . Better look to invest in different options. This reduces the chances of losing all your capital.
There is a great , even with little money. Achieving it only depends on you, choose the activity that makes you feel happy with what you are doing. In such a changing world it is important that you put your money to work, that it generate returns for you and your future.
Finances are essential for you to live as comfortable a life as possible. The changes that many of the reforms have undergone, which speak about pensions and retirement, have been drastic. It is in your hands to generate what is necessary for you to live a peaceful old age without worrying about money.
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What to invest in with little money?
If you have come this far it is because your commitment to grow your income is real. It is time for you to know only some of the options in which you can invest with little money.
1. Cetes
When you ask yourself, where can I invest my money? One of the first options may be the Federation Treasury Certificates, also known as Cetes.
If you have never heard of this term, you should know that they are certificates that the federal government provides you in exchange for a loan so that they can obtain any resources and carry out projects of public interest. That is, you lend money to the government for a certain period of time and receive profits for that loan.
At the end of the agreed period of time, which usually range from 28 days, 91 days, 162 or up to 365 days, the amount you lent is returned to you plus the interest that has been generated in that period. Cetes are a great option, since apart from being safe they are very cheap. A Cete has a cost of $10, and you can invest from $100 to $10,000,000.00 MXN.
As we already mentioned, one of the advantages of the Cetes is that your investment is very safe since the risk of scams or losing your money is very low because you are lending your money directly to the government and not to the bank, to an insurer. , to online loan companies or to a pawn shop or value, etc.
2. Investment funds
Another option in which you can invest with little money is in an investment fund. Which consists of investing your savings with a group of people who, like you, want to grow such investment with shares in the national and/or foreign market, having access to better opportunities from low investments to those with a higher risk.
Within the investment funds, as an option in which you can invest with little money, there are variants of them.
Usually, its term is 1 to 3 months. This type of investment fund can be your first test to generate money in a short time, although, normally, they generate lower returns.
However, it can be ideal for your money to generate income that you had not planned and with it you have the opportunity to earn money.
With this type of investment funds you can have your money on a daily basis.
Medium-term investments are characterized by increasing the yield you can obtain thanks to their duration. They usually range from one to three years, depending on the financial institution with which you do it.
These types of investments usually use fixed-income assets. It is also the midpoint between that security of the investment but with the increase in profits.
They last from three years onwards, so they are used to invest in financial resources that generate a higher income, such as dividends or fixed assets that offer a return. These types of proposals are designed for aggressive traders who are not afraid to invest.
In addition to the scope in time, there are other classifications and it is important that you take them into account because it depends on how risky the investment is.
They are those efforts that are made to invest in different portfolios. Especially in bonds issued by governments (municipal, state and federal). These savings funds move depending on market conditions. Therefore, the bonds issued can also come from banking institutions or private companies.
In these, the risk begins to increase because the investments are made in assets with greater exposure. An example of this is the shares of a company that is listed on the stock market. These companies can be national or foreign.
The also known FINCAs (Capital Investment Fund) are those investments where your money goes to the financing of projects or company operations.
3. Promissory notes
One of the options in which you can really invest with little money are promissory notes. And also, we believe, it is one of the simplest ways.
How does a promissory note work? These are one of the investment instruments that allow you to grow your money but with very, very little risk. In general, the term, which can range from one to 364 days, is agreed upon at the time of the agreement. It is also at this point that the rate of return is set.
It is as if you lend to a friend or family member and then charge interest. It works the same but it is recommended that instead of doing that you do it with a banking institution that is committed to returning not only your investment, but also the return on it.
In general, the amount with which you can start these investment mechanisms is really low. There are banks that allow you to carry out these actions from $2,000 MXN.
Do not forget that, in all these types of investments, the more money you invest over longer terms, the greater the profits you will obtain.
Retirement savings funds
As we mentioned at the beginning, beginning to foresee the future is very important to live a calm life without worries about money.
And without a doubt, savings funds are the option to invest with little money.
Retirement savings funds or now also known as Afore (Administradora de Fondos para el Retiro), are future investment mechanisms. If you find yourself working and contributing to the IMSS, it is very certain that your company is contributing a monthly amount, you give as much (even if you do not know it) and the government a little bit more. That is, your retirement money is being managed.
If there is something you can do wrong with this type of investment, it is to stay calm with what your work is giving month after month. The idea is that you can make voluntary contributions to generate higher and better returns.
Where do those returns come from? Well, there are administrators that invest your retirement fund in institutions called Retirement Fund Investment Companies (SIFORES)
savings funds
As well as the Afore, there is another type of fund where employers offer an option to encourage savings in their employees. It works as follows: every fortnight or month an amount of money is deducted from the workers’ payroll and the employer contributes a percentage. At the end of the year, the employee obtains the sum that was deducted from his payment plus the contribution of his company, with which they can double the amount of money.
This option can only be used when the company offers it as a benefit to its employees and is very similar to the savings account.
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Low investment businesses
If investments with institutions are not your thing, we have another idea for you. How would you like to implement a business that requires little investment and with which you can earn extra money or become independent? It sounds good and there are more and more tools that make work easier for entrepreneurs. We share a list of businesses that you can implement with little capital.
- Makeup or skincare
- New clothes
- Second-hand clothes
- Accessories
- Training or consulting
- Podcast
- YouTube channel
- Food business
Several of the options that we share with you are a great business option because you can buy wholesale and resell with a good profit margin. If you like sales or have always dreamed of having your own business, they are an excellent start. Today you can find merchandise of all kinds at competitive prices when you buy in bulk.
You can purchase makeup, shoes, accessories, skin care or even bales of clothes. But if sales are not your thing, you can profit from your knowledge and skills by giving workshops, training or creating tutorials on digital platforms.
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The information is yours, now you have to decide what to invest in with little money. It doesn’t matter if you decide to start with a financial institution or with your own project, the important thing is that you remember the importance of investing and diversifying your income. We also leave you this article so that you can have a broader view of , and decide if you want to invest in it.
Do not forget that, if you have wondered and decide to start your own business, Tiendanube is the preferred e-commerce platform for entrepreneurs in Latin America to sell their products. and discover how easy it is to create your website with a shopping cart. You’ll love it! 💙
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