"I don’t have enough money to invest!”
That's one of the most common reasons and misconceptions for not starting to invest.
Unfortunately, if you don't start now, you''ll be missing out on the most valuable resource you have, time.
In this post, I'll share with you 9 places you can invest $300 or less.
1. High Interest Savings Account
If you have not build up your 3-6months worth of living expenses for your emergency funds, save the $300 into the fund! Don’t underestimate this $300, it can keep you alive a couple of weeks if you get retrenched!
Stash your whole bag of emergency funds into high interest savings accounts to maximize your sleeping cash!
You can compare between high interest savings accounts here.
2. Peer to Peer Lending
Singapore’s online lending platforms is an option you can consider investing your $300 in. They provide you with a platform to fund individuals and businesses. An example of these online platforms is Funding Societies.
It has a minimum investment of only $100 with returns of up to 14% per year! Lock in periods ranging from 1 to 24 months.
3. Your CPF
You can top up your own CPF Special Account and earn a return of 4%.
Imagine if you invested this $300 at 4% for 40 years, the power of compounding helps you to grow it to $1,440, that’s about 380% increase from your initial investment!
The only downside is that you have to wait till you are 55 or 65 years old to withdraw your money.
Have you heard this saying that goes, “Invest in yourself, it pays the best interest.”? Well it’s hard to belief but it’s true!
Upgrading your skills and knowledge through reading books and attending courses(online and offline) can not only increase your employability but give you ideas on how to generate more money.
Online courses such as Coursera and Udemy are great places to start.
If you are 25 years old and above then you’re in luck!
SkillsFuture is an initiative by our government to support us in our lifelong learning journey! You are given $500 worth of credits to attend courses!
5. Start A Business
“Huh? Can I really start a business with $300?”
Yes! Since everything is online these days, you don’t need much to start!
Starting a blog and earning money from advertisements and affiliate links doesn’t require much money. Affiliate partnerships with Clickbank, Amazon and Qoo10 are some good examples.
You can also start a business by flipping items, meaning buying and reselling them at a profit on online platforms like Ebay, and Carousell.
Another option you can consider is flea markets. You can sell the stuff you no longer use and renting a space, table and chairs will definitely cost you less than $300.
6. Individual Stock
In Singapore, the minimum amount of stocks you can buy is a 100. So with $300, you can only invest in stocks that cost less than $3, provided brokerage fees are free.
Alternatively, you can open an online brokerage account overseas such as ThinkorSwim to invest in the United States stock market. The U.S Stock market allows you to buy 1 single stock instead of a hundred at one time.
Investing in the right stock can potentially earn you much higher returns than the market!
If you don’t have the time or knowledge to pick stocks, don’t worry here are several options for you!
7. Exchange-Traded Funds(ETFs)