How I Invest My Money At Certain Amounts For Maximum ROI - DataDrivenInvestor

Summary

How I Invest My Money At Certain Amounts For Maximum ROI

Only have $1000? Time to double it

How I Invest My Money At Certain Amounts For Maximum ROI

Only have $1000? Time to double it

Photo by Lukas Blazek on Unsplash

It’s no secret making your money grow and work for you is a major key to obtaining wealth.

You could save large amounts of your income in a bank, but at the end of the day, the interest you’ll receive from doing that will be next to nothing.

But on the other hand, do you immediately want to start throwing your money into a retirement portfolio you can’t touch until you’re older?

Depending on how much money you’re working with, it’s better (in my opinion) to invest it in certain ways to make it grow faster.

Here’s how I invest certain my money at certain amounts for maximum ROI.

$1,000 or less

Start a business or side hustle.

Investing your money in your own business that generates income is the easiest, fastest and safest way to double or triple your money if you have less than $1,000.

I didn’t believe it at first, but it’s absolutely true. I’ve easily doubled and even tripled my money from my side hustles. Some have even bloomed into full-blown businesses that produce income.

By creating an income-producing business, you’re giving yourself another stream of income and an asset. Sure it takes a little extra work (I never said all of these methods were passive), but it’ll be worth it when you turn 1 into 2 over and over again.

Once you start earning money from your business and side hustles, reinvest it into your operation. Don’t just spend it or save it — give it a chance to grow even more.

$5,000 or less

After hitting the $5,000 mark, it’s time to start diversifying income to other assets. There’s no need to keep all my eggs in the same basket, it’s too risky.

Instead, I diversify my funds into a Roth IRA and invest in index funds. Besides having an emergency fund, I still wouldn’t put too much money into a savings account. It’s too stagnant.

Even if you do invest in a Roth, having some kind of retirement portfolio you contribute to at the $5,000 point is crucial for diversification and solid returns. Index funds return around 10%, way more than your bank, bonds or any high-interest savings accounts.

I would also continue to reinvest money in my business and side hustles at this point.

$50,000 or less

Around the $50,000 amount is when I’d personally start to look at bigger investments. We’re talking about buying some real estate or acquiring a business of someone else’s.

There are several ways to do this. You could put a downpayment on a home and rent it out to earn more income, buy someone’s affiliate blog or even buy a franchise if you can.

Continue to max out your investment portfolios if possible while doing this. You might not have time to keep side hustling, but it won’t matter because owning a bigger business will take the place of your small business/side hustles.

$100,000 or less

At around the point of $100,000, I’m personally going to turn more toward investment accounts. If I have a business doing well for me, then I will continue to run it, but if not I’ll likely sell it and invest the money into my portfolio.

I’ll also look for more real estate opportunities. So many people have generated wealth from real estate.

Investing isn’t one size fits all

Having less money doesn’t mean you should just throw it into the bank or the stock market and pray. You can do so much more with that money

How I Invest My Money At Certain Amounts For Maximum ROI - DataDrivenInvestor
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