6 Easy Ways to Invest Your Money

Published on May 7, 2020 by Lauren

Everyone can invest, and there are so many Easy Ways to Invest Your Money. You don’t have to read the Wall Street Journal every day or watch the stock ticker to be an investor. Whether you have millions to invest or can only contribute a few bucks a month, there are easy ways to invest your money.

When you think of an investor, you probably picture someone who watches the stock market to trade shares at just the right time. Buying low and selling high is the name of the game when it comes to investing, but there’s something to be said about the “lazy investor” who puts their investing on autopilot.

One of the best-known investors is Warren Buffett, chairman of Berkshire Hathaway and self-made billionaire. He recommends you hold your investments over the long term.

Buffett says, “If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.”

Investing is easier than you might think, and it doesn’t take thousands of dollars to open your first account. If you want to start preparing for a better financial future, here’s how to invest your money.

Easy Ways to Invest Your Money

1.) Take advantage of your employer’s retirement plan

The very first place to invest your money is in a retirement plan offered by your employer. Even if you have a lot of debt or aren’t saving anywhere else, most employers will match your contributions. The average 401(k) match is 4.7%, according to an investment article from CNBC, which is essentially 4.7% of your income in free money.

If the average median salary is $47,800 in the U.S. and you invest 4.7% of your earnings in a 401(k) starting at age 30, you could have over $1.3 million by the time you retire assuming an expected return of 12%.

But if your employer also contributes 4.7%, you could have over $2.7 million when you retire – that’s over 200% more than you’d get without workplace matching.

2.) Let a robo-advisor grow your money

Investing technology has grown leaps and bounds in recent years, and a robo-advisor can be your best friend. 

One of my favorite robo-advisors is Betterment. Setting up your account is a breeze. You can make a one-time contribution or set up automatic recurring deposits to build your investment account over time.

Betterment’s fees are virtually nonexistent. While you might pay 1% of your investment balance for a financial planner to manage your money, Betterment charges just 0.25%. It might not sound like a big difference, but paying 1% could add up to $27,000 or more a year in fees, while Betterment would charge just $6,750.

3.) Try the cookie-jar approach

Setting aside $5 here and $10 there can really add up. While your grandparents may have kept small amounts of savings like this in a cookie jar, there’s a better way to do it. After all, why let your money sit around the house when it could be earning you money?

My favorite investment tool for the cookie-jar approach is SmartyPig. It’s a free online piggy bank that helps you save for financial goals. 

When you set up an account with SmartyPig, you can earn 1.75% APY (annual percentage yield) on deposits as small as one penny. Plus, it’s completely free. You won’t pay any fees to join, and they don’t charge transfer fees or withdrawal fees.

4.) Invest in real estate without being a landlord

Investing in real estate is something most people think about at one time or another. The trouble is that it usually takes a lot of cash upfront to get started, not to mention the 2 a.m. calls from your renters when something goes wrong.

But you can make money in real estate without being a landlord. And you don’t need thousands of dollars to do it, either. An investing platform called Fundrise simplifies real estate investing and lets you start with as little as $500.

5.) Open an IRA

If you’re looking for an easy way to invest your money, consider opening an IRA. It’s an individual retirement account that can save you money because your investments grow tax free. Most Americans aren’t saving enough for retirement, and an IRA can help bridge the gap to make sure you have a comfortable life once your working years are done.

My IRA is through Betterment, and it’s easy-peasy to set up. Making regular deposits to your IRA investment is smart, even if you can only afford $20 a month. That’s enough to get you started, and you can gradually increase your contributions over time.

6.) Buy bonds for a low-risk return on your money

Bonds are another great low-risk investment. The government sells Treasury bonds that can pay a higher return than what you might see with a savings account. They come with a term that lasts 30 years, making it a great long-term investment option.

If you’re looking for a short-term investment, consider Worthy who sells bonds that have a 36-month term while allowing you to withdraw your money at any time. 

Investing doesn’t have to be scary, and you don’t need to be a know-it-all to earn a good return. These options make getting started easy. Don’t worry about not having thousands of dollars to start with… the important thing is that you’re consistent.

Working investing into your monthly budget is so important. If you don’t currently have a budget, let me help you get started! Sign up for this free budget pack and learn how to create and stick to a budget!

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