Times are tough. It can be a little difficult these days to scrape together any extra money after all the needed payments go out. If it is only possible to set aside 100 dollars each month what is the best way to spend it.
♦ Some Gurus might say.. ♦
“Gurus”are always happy to tell you how to spend money you do not have. “Invest in gold”, some will say, “Buy silver”, says another; still others might suggest stocks, bonds, savings, money markets, and 401Ks. Each has its proponents, and none are completely wrong. But what are the TRUE best ways to invest your limited money?
♦ The third best way to invest $100 each month ♦
Create as varied as portfolio as possible There is only 100 dollars here It won’t be easy. But as the principal grows you need to try to spread it out. A little in savings. A little in Bonds. Some for a 401K. That should all be pretty safe. A tiny bit f the total in (once it adds up) in precious metals (gold and silver) as more of a safety net. Then the rest in mutual funds, stocks and bonds. It is only $100 a month. This will not be split up right away. But once a few years pass, diversify and keep that $100 coming in.
This method should not be started until you are completely satisfied with ways #1 and #2
♦ The second best way to invest $100 each month ♦
Pay down your debt. It is assumed you are meeting your minimum credit payments if you have $100 “spare” dollars. The best thing to do is to still put this money toward debt –assuming you have debt-. This is not revolving door, pay your debt either. It is NOT “pay off, 1000$ now you have 1000$ to spend”. The goal is to get debt GONE and then progress to step 3 or do more of step 1.
Think about this. These days finding a savings that will pay 8% interest is amazing. A Stock, bond or any investment vehicle that could guarantee a 15% return for your money year in and year out, would be considered an unbelievable score. Yet many people are paying close to 20% -or more- for some interest rates. Pay off that credit. It drains people dry.
♦ The best way to invest $100 each month ♦
The best way to invest $100 each month is simply to invest in you. This does not mean to buy a new television or even a new car. It means in training and improvements for yourself. Things that could improve your value to employers. Things that will increase your health and well being. Invest in yourself. Hopefully there is still money for some pay down on credit card bills, but $100 a month should easily pay for a college class each semester. It will easily pay for some really important online class. Make sure what you pay for has true value, but never be afraid to invest in yourself. You can never have knowledge and skills you gain foreclosed on.