If you’re looking for investment ideas other than stocks, this guide is for you. You don’t have to invest hundreds of thousands of dollars in the stock market to become an investor. These small investment ideas below are all easy ways to invest while earning great returns.
From precious metals to real estate, there are alternative investments to fit any budget. Here’s your go-to guide to investments other than stocks. Let’s start building that portfolio.
1. Precious Metals
Precious metals are a great alternative to the stock market. There’s a reason gold and other metals have been used as currency for centuries. If you’re looking for what to know before you invest, there are some great resources that break down each type of metal. One of the best parts about investing in precious metals is that you can do so even on a small budget.
One thing to keep in mind is that you’ll want to have a secure place to store any of your gold or silver. These coins or bars are precious investments. A safe or a secured box at your local bank will both make great options. If you’re wondering what to invest in besides stocks and real estate, give precious metals a try.
2. Your Home
Your home is one of your biggest assets. If you don’t currently own the home you’re living in, now is the perfect time to take the plunge. With interest rates at an all-time low, you can buy a home with more affordable monthly mortgage payments.
Your house is more than just a place you live, it’s also a great investment. Buying a home that needs a little work in a good neighborhood is a great way to build equity as well. Your investment will go a lot farther this way.
With a few small repairs or renovations, you may see the value of your home go up. Learn which renovations will give you the best bang for your buck and do a couple over time. In good real estate markets, the longer you own your home, the more the value of your property will increase. You’ll also be paying down your principal balance leaving you with more equity.
3. Investment Properties
Investment properties are homes you don’t necessarily live in but you use as an investment. These include apartment or condo rentals, homes you’re planning to flip, or multi-family buildings. In some cases, you may choose to buy a home with a second apartment so that you can live in one while renting out the other.
Investment properties are a great way to make passive income. You can use the rent to pay off the mortgage. If you’ve bought the investment property in cash, you can use the rent as pure income. The more property you own, the more income you’ll receive each month.
With homes you’re flipping, you’ll be able to buy a home that needs repairs, fix it up, and sell it for a profit. These investments come with risk but if you’re smart about your improvements, you can make a nice return. Make sure to do your homework so that you don’t overspend on the neighborhood. Whether you’re fixing up a rental or a home to sell, you want to make sure you are priced in line with the area.
4. Vacation Rentals
Vacation rentals are another form of investment property gaining popularity. With these homes, instead of renting them to long-term tenants, you’ll rent them out for a short weekend or week-long stays. Vacation rentals can fetch a great price in hot travel destinations.
In some cases, it may make sense to buy a vacation rental property you can also stay in. You can use it as your second home and rent it out whenever you’re not there. You’ll save money on vacations and earn income to help pay down the mortgage.
You will need to make small investments along the way to keep up with cleanings and repairs. Vacation renters expect a beautiful, clean space to call home while on their trip. Little investments in the amenities and fixtures will get you a higher rental rate. Remember that with vacation rentals, location is also key.
5. Peer-to-Peer Lending
Peer-to-peer lending is a great way to invest in small businesses. You can invest as little or as much as you’d like. Even on a small budget, your investment can go a long way. With peer lending, you give an individual or small company money to grow their business.
The more product or services they sell, the more return you’ll see in some cases. In other scenarios, you’ll be paid back a set amount with interest. The risk of this investment is that you won’t be paid back. You can put in some legal protections, however, to recoup your funds.
Your investment could pay off regardless of your budget. This flexibility makes it a great investment when you aren’t looking to take a lot of risks.
6. Cryptocurrencies
A cryptocurrency is a digital currency. This non-centralized form of money is growing in popularity. While this investment can be as large or small as you’d like there are a lot of risks. Cryptocurrencies are volatile. These investments can have huge swings. If you’re ok with this, give crypto a try. While Bitcoin is one of the most popular, there are several other options available.
Small Investment Ideas for Every Budget
Non-stock investments can come in a variety of different price points. Many of these small investment ideas even come with passive income. Whether you want to invest in a house to flip or vacation rentals, you could be earning money to pay for your investment.
Peer-to-peer lending and precious metals are great examples of investments that can be made with any budget. For more investment and finance tips, head to the blog section for more great resources and advice.