Cool Investments

What to Invest Small Money In?

Thu, 22 Jul 2010 05:10:53 +0000

Even if you have hardly any cash, it is always worth investing it. But before investing, if you suddenly come in to some extra cash, the first thing you want to do is pay off any outstanding debt you might have. That will give you a warm fuzzy feeling all over. Next, if it is just a small amount like $10-$30, then you might just want to hide it in your house, for that emergency time when the ATM down the block isn’t working or you just want to have a fun evening of entertainment without breaking the bank. But let’s say you have that already and you are really serious about making an investment, albeit a small one. One way of doing this (that won’t cost the earth) is via DRIPS (Dividend Reinvestment Plans) or DSPs (Direct Stock Purchase Plans) since they save you the hassle and cost of going through brokers as you buy stock direct from the companies/agents and there are over 1,000 major corporations offering such stock plans willing to take small investments. It has been said that DRIPS might be “one of the surest, steadiest ways to build wealth over your lifetime.” So it really is worth looking into this if you are a first-time or small-time investor or someone who wants to build up a nice little nest egg over time, without risk.

Buying and Renting

Mon, 12 Jul 2010 05:31:39 +0000

If you have a bit of extra cash that you want to invest, you might want to think about buying a property (or properties) and then renting them out. What you should know ahead of time however, is that you have to have a certain personality type to be able to do this; in other words, you need to be pretty tough to be a landlord. But if you do feel you have what it takes, then being a property owner is a great way to accumulate your money. Remember also that finding the right rental property is not the same as finding a property to live in. Consider the following points before beginning. First, determine how long you want to rent the property out for (are you going to be looking for short- or long-term tenants?). Second, are you going to own the property yourself long-term or will you have a view to sell it after a while (in the latter case you will not have to invest as much in its maintenance). Third, what kind of area do you want to purchase the property in (that way you can get somewhat of an idea as to what kind of tenants you are likely to have); Fourth, when it comes to the matter of investments, consider the higher risks you will have with a shorter time frame. Your property may decrease in value in the next few years, depending on what market you are buying in. These are just some considerations to be assessed, but it is also a good idea to talk with a property investor/manager before going full steam ahead. If you do it right, it can be a great money-maker; making the wrong decisions on the other hand can lead to total disaster and a real headache.

Invest in Something You Love

Fri, 02 Jul 2010 06:51:46 +0000

If you have some extra money lying around and you are thinking of making an investment, then the best piece of advice I can give you is find something you love. If you are excited about your investment, then you are more likely to succeed, or at least enjoy yourself in the process. Truth is, in as much as we think we know what the best investments are, so many times we are proven wrong. So wouldn’t it just be a better idea to put the majority of your excess cash in a stable savings plan and keep a little of it out to invest in something you love? That’s what I would advise.

I had a friend who recently invested in a sock company! She’d always had a thing about fun socks and just decided to help out a very small new company that was making pretty socks for women. She got to go to all the board meetings, pick out (and even design) some of the patterns; and have an input on the material. She really enjoyed her time doing this and didn’t have to put so much money into the company either. It is true that she didn’t end up with a huge financial profit, but what she gained spiritually was worth its weight in gold.

Invest in Shoes?

Tue, 22 Jun 2010 07:07:12 +0000

I think that when you are deciding what to put your money into, you should focus on what people will always need. One of those things is shoes. Now of course, you don’t have to go and find a shoe company to invest in to be successful. But shoes was the first thing to come to mind when thinking about what one should be invest in. Because, quite simply, it’s one of those things that people will always need.

The point is, before investing, do your research. Make sure that what you invest in is marketable. And if you’re not sure, start by asking friends. What do they like? What do they need? What would they buy? Even if the product doesn’t cost so much, that’s not relevant. Because once you find something marketable, if you sell a lot of it, you’ll be well on your way to making good money!

Teaching Kids about Money

Tue, 08 Jun 2010 09:54:16 +0000

How do you teach your children about the power and importance of money? Children don’t just naturally acquire these skills, and it’s important that we teach them well.

First, children need to be taught good money habits. This often involves learning delayed gratification. One way to teach this skill is to have a clear jar in a child’s room. When they do their chores well, or they act nicely, etc. you put a small amount of money in the container. Once it builds up to a certain level, take the money out and allow the child to spend it. The child will soon come to understand this concept and to enjoy watching the money build up.

Teach your child creative ways of making money. While schools usually teach children about jobs, they don’t often discuss investing, opening small businesses and being self-employed.

Help your child to understand giving as well. Give your child a certain amount of money that can be used for charity at church or for a local charity. If you have a slightly older child who is earning her own money, make a point of having her give a certain percentage to charity.

All of these tips should slowly, over time, help your child to understand the value of money and to appreciate its place in their lives.

Investing Wisely

Tue, 25 May 2010 06:15:32 +0000

If you have ever wanted to make a bit of extra money but don’t really want to take a huge risk, you really have to invest wisely. Below are some tips on how to do that:
1.   Think about what you and your friends have always wanted – that’s usually a really great place to start. If you ever think to yourself, oh wouldn’t it be great if… try to see if you can put that into practice.
2.   Remember that the best inventions are simple – don’t get yourself too caught up in trying to be clever; focus on KISS: Keep It Simple Stupid.
3.   Spend little – whatever you do, at least initially, don’t spend too much money on an investment. If you are anyway not exactly wealthy, it’s always a bad idea to say, hey this is going to make me a ton of money so it’s okay if I borrow a lot to start with. It’s not. It’s like gambling. And that never makes sense.
4.   Try something temporarily – you don’t need to commit to a large or long-term investment. For example, if you have a local park which is packed in the summer and nowhere to buy cold drinks or popsicles, why not start from June to September with a small lemonade stand? The financial investment is minimal and it’s not something you have to commit to long-term either but if it takes off, who knows what kind of money you can make?
5.   Take pleasure in your investment – this is probably the most important tip for investment success. Make sure that whatever you choose to do, you have fun with it. There is absolutely no point in trying something just because you think it is a good idea but you know you are going to hate it. Have fun with it and believe in your idea.
If you follow these simple tips, you really can be quite successful with just a little bit of capital. Don’t put yourself under huge pressure. Start small and then in time, you can always expand but don’t take on more than you can handle.

Investing on a Tight Budget

Tue, 11 May 2010 08:33:59 +0000

Certainly, it’s hard enough to live on a small income. Many people who live paycheck to paycheck can’t even dream about saving money and putting something aside each month. However, it really is possible – and important – to do so. Here’s how.

Melinda Donovan, a senior vice president and trust officer at Cambridge Trust Company urges people to get into the practice of saving. Even if it’s only $100 a month, and even if it’s towards the purchase of a car, trip or other item, it’s an essential practice. Learning to save offers you a feeling of control over your fiscal future and allows you to feel more self-confident.

If you work at a company that has a 401(K), this is the most painless way to save. Especially if your employer will match the amount that you put into the 401(k), this is simply a win-win situation. Even if the employer doesn’t match your investment, it’s certainly still worth taking advantage of, as you’ll still have the interest, dividends and capital gains accumulated tax-free.

If your employer doesn’t offer a 401(k) or if you simply want a second retirement account, you can look into using an IRA. The Roth IRA is particularly great for anyone with taxable income less than $110,000 as a single filer.

While you may initially feel like you simply don’t have enough money to save any each month, you can probably find a way to do so with careful planning. Each dollar that you save will truly make a difference for you later – and it’s certainly worth putting the effort in now for the benefits down the road.

Investing for the Golden Years

Sun, 25 Apr 2010 10:59:10 +0000

Certainly, we all want to retire young and enjoy our golden years. This, however, takes a good deal of planning and thought to make sure that you are investing properly and carefully. Here are a few quick investment tips to get you on the right track towards that great retirement.

Make sure not to wait too long to start investing in your future. You can start putting money aside in an IRA or in another type of fund very young. If you put even $1000 away each year from the age of 25, imagine what this money can be doing for you during the years when you are working hard. This is a much easier and smarter way to invest than to hope that you have the money to put away later.

Talk to an investment advisor about investing in bonds. They mature over a period of time and usually have a good growth percentage. Real estate is often a good investment as well, as home prices usually appreciate. Certainly, however, during a recession, you may find that your investment decreases in value. In order to invest in real estate, you need to have a good knowledge of the market in the area where you want to invest and some extra cash to work with and invest.

It’s always a good idea to talk to a financial advisor to get advice about investing in your future. It is, after all, your future we are discussing!

Having a Head for What’s Popular

Mon, 12 Apr 2010 07:16:05 +0000

I remember way back when, in high school, there was a kid who never seemed particularly smart to me. She wasn’t all that popular either. And she certainly wasn’t a looker. But boy oh boy did she rake that money in. For a 12 year old, she was probably making more $$$s than her parents! Well, that might be a little exaggerated, but it was pretty awesome given that the said girl didn’t seem to be much of anything.

So what was it about her? She had the head for getting into other kids’ heads. She knew what they wanted. It was the simplest thing. But simple or not, it was she, who had the idea. One day she came to school, and during recess you could see about 10 or 15 kids gathered around her. Curious as to what the fuss was about, I took a look. She was selling plastic colored bangles: pink, orange or black for $1.50 a piece. I had never seen them before but by the time we were packing our backpacks to leave for the day, at least half the class had one or more proudly around their wrists.

That was just the beginning for this girl who I’m sure by now is at the top of some investing firm, advising it on what to buy and what to give a miss. Over the 3 years I was in the same school as her, it was amazing she had time for lessons. She must have sold thousands of these bangles. She brought in a couple of more colors, but the basics of her idea remained. She just happened to get into the head of the kids at the time. She was in the right place at the right time and she got off her backside and did something. Now that’s what I call a cool invention and a great investment; get the head for working out what’s going to be popular.

Investing in Gold – A Good Choice?

Thu, 18 Mar 2010 09:18:28 +0000

When people invest in gold, they are doing so for the long term, not for short term benefits. Gold usually has good returns. There is a World Gold Council that is a forum for gold producers around the world. They give out information about investing in gold and also create awareness about this type of investing.

People enjoy investing in gold for a few reasons. It can be quickly converted to cash. It is easy to carry and to manage. The performance of gold is proportional to the stock market, so it is pretty easy to calculate its worth.

Before investing in gold, you should definitely do your homework. Some investors actually prefer to buy gold when the price is higher, with the thought that the price will continue to rise. Others purchase gold when the prices are declining so that they can sell it when the price rebounds. There are many ways to invest with gold, and you should certainly become educated before leaping into this field. It’s definitely an option that many people don’t consider when they think about investing – and one that might be worthwhile to explore further.