Have you always dreamed of being financially savvy? According to statistics, the more you delay saving money, the more difficult it will be to save if you start at a later date.  Women are reported to invest even lesser than men which results in even lesser returns. This is compelling more young professionals to start investing their money because even as little as twenty dollars can help you earn higher returns if you play your cards right. When you’re living paycheck to paycheck it can be difficult to even imagine saving any amount of money, but with these tips you can become one of the 18% Americans who have saved enough for retirement.

There is surprisingly a lot you can do with even twenty dollars if you invest smartly. Here are some lucrative ways you can reap the most benefits for yourself.

How to invest as little as twenty dollars

Technically, the money you want to invest should not be a portion of your daily expenses. Let’s also assume that you’ve paid off all your debts and you have a sufficient amount of money stored away for emergencies. Any extra money you are left with is definitely worth investing and one of the cheapest investments you can make is in a Dividend Reinvestment Plans (DRIP).

If you are already an investor in a company, this plan allows you to reinvest your money in extra shares automatically. There are several public holding companies that allow you to opt for an automatic payment plan.

How to use an Index Fund

An index fund is ideal for investing a slightly larger amount of money. This is a type of mutual fund that can accumulate all your investments in a pre-determined index. This guarantees that sole investors can get higher returns on the investments they make. They are also relatively easier to purchase and only take three simple steps.

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Search for a place which has ideally no commissions to invest in and choose an index. Compare the minimum requirement for making an investment as well as other costs that are liable so you can find a fund amount suitable for your budget.

Make a smarter investment

Invest some money in improvements in your home that will improve the quality of your life as well as reduce the cost of living. One way to do this is to make your home more energy efficient which will significantly reduce your energy bills. Installing energy efficient lighting or better insulation in your home can help reduce costs significantly.

Want to invest in the future? Fix your credit first so you have no debts to worry about when you get your hands on that extra cash. We at Master Credit Consultant can help you analyze your credit reports to achieve your financial goals. Contact us for more information.