A couple of weeks ago my roommate Alex over dinner asked a simple question.
Where can I invest $25 per day for maximum returns?Alex
At first, I was stunned by the question. Surprisingly, I was unable to answer with clarity. So, I decided to embark on a discovery journey. Not without, rephrasing his concern to
where to invest $ 25/day?
Takeaways: How to Invest money $25 per day for maximum returns?
Discovery and data collection
My discovery process started by asking myself how much I spend per day: breakfast, lunch, and dinner. Also, I explored my weekend activities and the budget I spent each time I go out. Further, I asked around me to see if my friends, co-workers, neighbors, and relatives are in the same spending range. Additionally, I asked them if they are willing to put $25/day in an investment. They overwhelmingly answered was absolutely.
I started exploring how many opportunities are available for people to invest $25/day. Importantly, how much impact could be created for the investor.
The only strong recommendation that I can formulate is to only focus on companies that lend working capital or invest in the stock market.
- Most people spend more than the amount ($125) on a single weekend outing.
- If you do an investment pool you can even expect better risk management.
- $750 per month can really go a long way to support a small business
- It can yield some very surprising returns on investment
- It is money otherwise spend/ loss anyways just put it to work.
$25/ per day, which turns out to be $125 per week and $750 per month. That is more than enough working capital for some small businesses to turn around for a month. If you take into consideration an interest rate between 5% to 17% at a fixed rate. You can expect a good yield.
- Total investment: $750/month
- Total return: $37.5/month ( conservative)
Obviously, the return can be substantial with some high-risk investment opportunities.
Learn more: How Can I Invest money $25 per day for maximum returns?
Here is a list of opportunities that you can explore. Evidently, the list is by no means exhaustive :
Kiva: the company uses the crowdfunding approach to fund projects all over the world. Based in San Francisco the company has already funneled more than $1.2B since its inception in multiple investment projects around the world. learn more: https://www.kiva.org
Zidisha: the company uses the same model as Kiva. Learn more: www.zidisha.org
Lendingclub: The company is a peer-to-peer lending company registered in the USA. It was the first company in the USA. Over the years the company has evolved and now has also institutions as part of the platform. More $44B has been already been borrowed thanks to more than 2.5 million customers. Learn more: https://www.lendingclub.com
Prosper Marketplace: is similar to the lending club. Learn more https://www.prosper.com/
Kabbage: is a company that provides working capital loans to small businesses. Working capital is the gas for any business. More than $6.5B has been awarded since its inception to more than 170000 businesses. Learn more: https://www.kabbage.com
Upstart: is a company that leverages AI to provide loans, the system is fully automated. They work with individuals as well as large banks. Learn more: https://www.upstart.com/about#who-we-are
Stock market investment
The stock market can provide good investment opportunities. There are stocks worth less than $25. Typically they are generally called “Penny stocks”. You can certainly explore, do some research and put that money towards accumulating stocks. Nevertheless, be careful because these stocks are highly volatile.
Platforms such as Betterment, Robinhood, Webull, Cashapp are also great alternatives for retail investors.
Drop shipping business
This is potentially one of the most rewarding businesses out there. You don’t need to carry any inventory just a simple website will do. The cost for hosting and premium addons will be$50 per month. Moreover, the business model is available for all items. Then, you can dedicate the daily investment on marketing and sales budget to drive sales.
All in all, I believe they many more opportunities out there. $25 a day can really go a long way. If you put it to work.
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