Is there an actual investment that can earn you money every day? A legit investment that doesn’t make you worried about the morality of what you are doing?
Well, Yes. While your financial advisor will always disregard such investments, the truth is that there are many investment opportunities you could put your money in and earn great returns from them.
So, if you have £1,000 that you are sitting on and unsure of how to earn something from it, other than spend it on something frivolous, this article is right for you. It’s time you stopped and moved beyond the scarcity mentality, or worse, the belief that you must make a lot of money to start investing. Given the right opportunities, you can earn a little money from the smallest investments you get your mind on.
But before we look at the investment options you could invest in and make money from each day, here are a few things you need to know and master before you make any investment:
Be Disciplined: by discipline, we mean that you must focus your cash in only the best investments or stocks.
Concentrate on what matters to you in terms of the long-term and the short-term goals.
Look for the best short-term investments. While real estate is one of the best forms of investments (when the market is right), this investment is time-intensive, and you won’t get returns on the same day. Also, making money from this investment is not a daily thing.
Note, however, that before you invest your money somewhere while expecting daily returns, there are things you must bear in mind.
First, Put Away Enough money in an emergency fund – you must have some money saved up in an emergency fund before you start investing. Besides the promise of daily returns, the markets change the same way the sea does, which is why you must have an emergency fund set up. A month’s worth of investment is a good start, but we recommend putting away 3-6 months in saving to handle emergencies. If you are one of those people who don’t believe in putting money at a place that doesn’t yield any returns, look for a high-interest savings account, this way, your money grows, and you have enough and accessible money to cover you in emergencies.
The next thing you must do is to Get out of Debt. It’s time to face the truth that even with the highest-earning investments, you won’t be making any strides if you have debts, especially on your high-interest credit cards. Unsettled debts will always take from your investments. To enjoy your investment returns and to have some money left to reinvest will only happen if you pay off debt. If you don’t have other alternatives, you should consider using your initial returns to pay off existing debts; just don’t keep accumulating more debt.
So, how do you invest and make money each day?
Play the Stock Market
The truth is that the stock market is not always the first investment strategy listed, but it sure pays when you understand all there is to know about day trading. It takes determination and grit to be a day trader, and it also takes a deep understanding of the stock market and the different forces at play. So, if you are not well informed about the stock market, you might want to keep this investment option at the backseat.
But if you are an advanced trader, then you can trade in penny stocks, ensuring that you stop the loss limits and cut all potentials for depreciation. Being an advanced trader also means understanding the market makers who move stocks.
And always cut short your losses, if investing in stocks. When it comes to investing in the stock market, you must thin about the most important rule in Judo (and all martial arts) – damage control. Learn how to fail. Learn how to cut your losses. So, when your stock gets to 7% or 8% below the stock’s purchase price, hang your boots and sell the stock. Even though no investor wants to lose, ever, the truth is that the stock market is extremely volatile, and in some cases, taking a small loss is better than losing it all since the small loss means that you will still have something to invest elsewhere tomorrow.
That said, it’s important to remember that the only way for you to earn from the stock market daily involves understanding the stock and the market trends.
Besides understanding the market’s volatility, you should decide to commit a specific amount of money in the stock market, and don’t forget to adopt an investment strategy.
Dividend Stock vs. Growth Stock
To invest in the stock market, you need to decide whether you will invest in the dividend-paying stocks or the growth stocks.
The dividend-paying stocks are often safe. How do they work? Generally, the dividends paid represent part of the profits made by the company you are investing in. The dividend is often paid quarterly, meaning that you will earn from your investment through cash (short term) or long-term appreciation of the market. Investing in the dividend-paying stock is ideal for the intermediate and the advanced investors who have a certain level of appetite for risk.
The growth stocks, on the other hand, refer to the section of the stock market that has recorded good performance over a specific period of time. The growth stocks are often for tech companies that have recorded growth in sales fast. For example, Apple, Amazon, or Google (Alphabet). Note that the growth stocks are different from the dividend stocks in that the former doesn’t make cash distributions from the profits made, choosing instead to reinvest the earned cash/ profits to encourage even faster growth of the business. The growth stocks are regarded as the highest-flying stocks, they are quite volatile, but the best of these stocks could return as much as 20% or even more, for years. The growth stocks are a good fit for intermediate/ advanced investors, given the volatility of the investment, as well as the fact that you have to analyze the stock (and company) carefully before you buy the stock.
Away from the traditional investment strategies, affiliate marketing is one of the most lucrative investment options. The catch, however, is that unlike the traditional investment options available for you, investing in affiliate marketing involves creating an online brand and promoting products through your blogs to get paid every time someone buys from your site’s link or if they click on the link. While the prices are quite variable, you’ll be surprised to know that some companies will pay you as much as £100 for each successful conversion.
To win at affiliate marketing, first, identify a niche you are passionate about, then create excellent content, and work on your brand’s awareness.
Peer-to-Peer Lending (P2P Lending)
Consumers are always looking for access to fast cash. So, if you establish yourself as a P2P Lender or join an online P2P lending club, your money will go to someone who’ll pay back the credit at a good interest rate. For example, if you join the Lending Club, you will be connected to thousands of borrowers, and this could be a very beneficial financial investment.
As an investment opportunity, P2P Lending makes it possible for you to invest in the crowdsourced loans that will be given to individuals looking for loans, regardless of the high-interest rates. The returns from P2P lending clubs are often high, which is why P2P Lending is regarded as one of the best sources of passive income.
The other investment opportunity that could earn you good money daily involves taking advantage of investment gains. For example, you could set up an online investment brokerage accounts, buy stocks or EFTs, and make money. With time, you can open more accounts with other renowned investment funds, and just like that, you will have a daily source of income.
To invest in and earn money from the money markets, you need a money market account. The money market account refers to an interest-bearing, FDIC-insured account.
This type of account provides an excellent way of earning income every day because the money market accounts tend to earn significantly higher interest rates compared to the savings accounts although these accounts require a high minimum balance and there are restrictions and limits to the frequency with which you can withdraw/ access your money.
The biggest selling point of the money market accounts is the fact that the money in a money market account is relatively fluid, meaning that on top of the higher yields, you may also like this account for your emergency fund/ savings. Therefore, if you are new to investments and looking for an investment option that would make it easier for you to build up your cash flow/ set up your emergency fund, this account would be an excellent option for you.
But before you are all in, what’s your risk profile? You need to answer this question honestly because even with the high returns, the money market is volatile, with inflation being a huge risk for investors. Your purchasing power could be diminished significantly if the inflation rates surpass the earned interest rate on your account.
Short-Term Corporate Bond Funds
You know that corporates issue bonds to different investors to raise money. As a small-scale investor, these corporate bond funds could expose you to the investments world by allowing you to buy these 1-5-year short-term corporate bonds funds. The advantage of such short term investments is that they are less susceptible to fluctuations in the inflation rates. If you are a retiree in search of good cash flow or an investor looking to reduce the investment risk on their portfolio, these bonds would be a good fit. Note, however, that the short-term stocks aren’t insured by the FDIC.
High-Yield Savings Account
If you are looking for a low-risk investment (that’s FDIC-insured), even if the interest rate is lower than what you’d have earned by investing in a high-risk investment, you may want to try the high-yield savings option. With most of these savings accounts paying interest at a rate of 2-3%, the account could be a good investment vehicle for you if you need to put your money somewhere you can access your money easily in the (near) future. So, if you see high-yield savings, think low risks and high liquidity.
REIT/ Real Estate Investment Fund refers to the companies that own and also manage real estate. Generally, REITs do not pay taxes, as long as the companies pass most of the income made to shareholders as dividends. REITs are seen as a great investment option by the companies/ investors looking for quick/ easy options of owning real estate, with little management work. This investment is quite attractive to individuals looking for passive income sources or relatively good cash flows.
Before investing in REITs, you must have a good understanding of the market you are investing in. There are different sectors and sub-sectors for you to choose from, and you should choose carefully. We recommend choosing the publicly-traded REITs rather than the non-public REITs – the latter have few protections, and you also have to deal with the higher expenses. You should also go through the history of the REIT, and only choose one if its history shows a steady rise in dividends over time. A high current yield doesn’t paint an accurate picture of what’s happening with the investment instrument.
There are tons of ways that you could earn money each day; all it takes for you to earn that money is the willingness to give the investment your all. You also need to understand the market or investment instrument you wish to tap into. The liquidity of the investment instrument, risk involved, and your risk profile matter as well. Remember that there are numerous investment options that allow you to build wealth slowly, over a period of time, and you can only make the best investment choice by weighing the pros and cons of each option before you put in the money