Looking for small Investment ideas for students? Then you are in the right place! I’ll share 3 investing options for students and millennials to start investing with little money.
We know that millennials are good savers, outperforming other generations by as much as 36%. However, many of us are reticent with parting with that cash – especially when it’s for investments, due to the problems the previous generation faced.
Many of us are already making future financial plans that typically involve pensions, house deposits, 401ks and the like. However, you could be making a good bit of extra money from investing and it doesn’t cost that much to get into. Here are some quick and cheap ways to start building up investments and small investment ideas for students.
4 Small Investment Ideas for Students
Here are 4 quick and small investment ideas for students those that have less than $500 to invest.
1. Invest in Private Real Estate Deals with Only $500
Wouldn’t it be great if you could invest in commercial real estate and apartments without dealing with all the hassle of buying, improving, and re-selling real estate?
You don’t have to be a millionaire to invest in these types of properties. You can now invest in large-scale real estate for as little as $500 with Fundrise.
Through their real estate investment products, investors earned an average of 8 – 11 percent on their money last year, and all without painting a wall or dealing with unruly tenants.
There is a reason why they currently have over 200,000+ users, this app really pays you!
If you’re interested, I recommend you sign up for more information from Fundrise by clicking here.
Best Real Estate Investing App: Fundrise
|Invest like a millionaire… but with only $500.||
Get it (iOS)
2. Invest Your Spare Change
There are apps available that offer the facility to ‘round-up’ your purchases – that is, save the remaining few cents to make up a dollar on your card purchases – and invest them for you. Taking little to no commissions and acting as a type of fund manager, these investing apps allow you to customize the level of risk you want to engage with. Essentially an investment piggy bank, they provide a way to literally turn your pocket shrapnel into sustainable investments, little by little.
One of the most popular apps that do this round up is Acorns (they are also offering a $5 sign up bonus here).
Acorns fees are $1 per month for all accounts with a balance under $5,000 and .25% of the balance per year on accounts over $5,000. Compared to traditional management, mutual funds, and DIY ETFs, this fee is incredibly low.
Tip: I should also mention that if you’re a student or alumni that still have access to your universities .edu email address, you can sign up for the app using your .edu email address and use the app for free without any monthly fees. I did it myself, and it worked flawlessly!
If you are interested in investing your spare change, I recommend you learn more from Acorns here.
3. P2P Lending
Peer to peer (P2P) lending is part of a new wave of holistic banking and finance trends that emphasizes fair lending based on a community of creditors creating a fund from which the lenders can make money, with the interest paid to go into the pocket of the peer to peer lenders.
This is a fairly low-risk venture given the protections offered by the financial conduct regulators and can be bought into, in many ethical and sustainable P2P companies, with low rates of the initial investment. To boot, you can feel like you’re doing something good by offering an ethical and holistic approach to lending, as opposed to the predatory nature of some banks and small businesses.
4. Precious Metals and Commodities
The benefit of investing in metals such as gold and silver is that you can secure your assets in a relatively future-proof manner. The price of gold and silver stays constant, and institutions like the Federal Reserve are anchored to that gold. Essentially, if your currency were to crash, you’d have something that’s worth something and will probably go up in price. State institutions are encouraging the pooling of resources into metal, too, such as the Royal Canadian Mint that has licensed coin-based bullion to store your wealth in a sustainable way. There are many similar schemes in action across North America and Europe.
Investment can sound scary given how the previous generation lost a good chunk of it.
However, millennials and students are saving better than ever before and have the income to get involved.
If you want to try and build a nest egg, but don’t want to shed all of your cash, consider these low-risk small investment ideas for students.