Low-Cost Ways to Make Your Money Work for You


Interest rates on many types of investments are low right now, so you might be considering other ways of putting your money to work for you. The good news is there are several ways of getting started with investing, and none of them require a large sum of money. Whether you are saving for a specific goal or simply want to have a bit more in the bank, these options can work for you and help you see greater returns.

Penny Stocks

Perhaps one of the biggest appeals of penny stocks is that you can often get started for an incredibly low price. They are often traded outside the regular markets, and you can get as many or as few as you want to. If you aren’t that familiar with these types of investments, take a bit of time to review a list of penny stocks to watch before you trade. That way, you can be making a more informed decision.

Treasury Bonds

This option gives a better interest rate than your checking or savings account will, and it does not come with that much risk. You can get them for anywhere between a month to three decades, with the longer timeframes paying a higher interest rate. They are backed by the government’s full faith and credit, and they have a past history of always paying their debt off.

While you are learning to master your finances, you can often acquire and sell them on secondary markets if you need them before the time period is up. While the yields are often higher than a savings account, that does not mean it is as high as with a corporate bond. On the other hand, corporate bonds also tend to have a higher risk since they are not as likely to be paid off.

Money Market Funds

These funds are all about investing in shorter length securities, but yields tend to be very low. However, unlike other types of investments, you will have access to your funds. they are also relatively safe, as you can access the funds whenever you need them. Most banks offer this option, and even if you don’t have your own brokerage account, you can often get the funds through the bank. Compare your options to determine whether a savings account or a money market fund would be a better option.

Fixed Annuities

This type of investment allows you to pay a certain amount upfront to receive payments made over time. They are similar to a certificate of deposit since you will not have access to this money for a certain period of time, but the interest rate is higher than with a saving account. Make sure you do your research on each annuity, as ones with higher interest rates can come with higher risk. Make doubly sure you do not need access to the funds before the time period is up since you risk having to pay a penalty to access funds early. This can negate anything you have earned from the funds.