Money For Lunch – Five Low-Risk Investments You Can Make Today

Five Low-Risk Investments You Can Make Today

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Everyone wants to enjoy the passive income that a good investment allows, but few dare risk their hard-earned cash. What if there were some easy, quick and low-risk means of securing a little ROI? It may sound too good to be true, but the below examples of investment only require between $100 and $1000, and have a strong likelihood of showing decent returns. These investments may not bring in hundreds of thousands of dollars, but in this economy even a few hundred bucks may even be worth your time.

P2P Lending

This is an unusual form of investments – yet one of the best if you’re looking to invest for the short term. Rather than buying a share in a company and its future, peer-to-peer lending enables you to lend your money to individuals or companies that they will then pay back together with interest. There are many reasons some people and businesses would opt for peer-to-peer lending instead of looking for traditional shareholders. Firstly, borrowers are likely to save money on lower interest rates while lenders are likely to save money on lower fees. Secondly, the loan is often formalized more quickly and in a straightforward manner, with P2P services primarily online-based and without middlemen. Investopedia also points out that P2P aids in globalisation by breaking down financial borders, since you can lend to people or companies all over the world.

Obviously, there is the risk of a company or individual not being able to pay back what they were lent through an online P2P service. Providing you screen potential borrowers properly, and stick to a reputable P2P service, the chances of falling victim to an unreliable investment is minimal. Average returns for investors check in at around $5.05 and $8.7, without the risk of the stock market. Most peer-to-peer lending services offer comprehensive screening tools and settings to match with a company or individual which suits your desired rate of return and loan preferences. You can also diversify your portfolio by spreading your $1,000 or so over several small loans.

High Interest Savings Account

This form of investment is popular because of its simplicity and zero risk. When you get a yield savings account, the bank will offer you a small amount of interest just for depositing money there. Since this is a competitive area for banks, you’ll find that the best high yield savings account offer seriously good interest rates without any fees. Make sure that, when choosing a high yield savings account, you also consider the bank’s customer service, how easy it is to access and manage your account, and how easy it is to deposit money.

Binary Options Trading

While this type of investment requires a lot more effort than the above two strategies – it is nonetheless a strategy that can earn you instant returns amounting to considerable sums in the long-term, for very little investment. When becoming a binary trader, you either sell or buy a proposition based on its likelihood of coming true. The binary option might be based on the proposition that the price of gold will rise above a certain figure in the next ten hours. If you believe it will, you can buy the binary option for under $100. Should you be correct, and the price of gold rises above the specified amount by the specified time, then the binary option becomes worth $100 which is what you’ll receive in returns. If you are wrong, you lose however much money you invested.

If, in this example, you were to predict that the price of gold will not rise by the specific amount, then you can choose to sell the binary option. The binary option will be valued at some figure between $1 and $100 depending on how likely its proposition is; this is the price a different trader will buy it for. If a binary option proposition is likely to be true, traders will bid for it, driving up its price. Buying a binary option of this type will give a small, but almost certain, amount of profit. Buying a lower cost binary option with an unlikely proposition, on the other hand, means you are putting a small amount of money on a proposition that would offer decent returns if, in an unlikely scenario, it were to come true. Binary options traders must take extra care to ensure that the online binary trading brokers are legitimate and regulated. Traders can read reviews of different brokers at sites like

Bank Bonuses

When you find that you have some cash you don’t need to spend for a good while, you may be able to earn some money through bank bonuses. Many banks offer sign-up incentives that could come in the form of cash for up to hundreds of dollars. In exchange, the bank will require you to keep your money in the bank for six or more months. There may be other conditions involved – such as setting up direct deposits or using specific cards from the bank. As soon as you earn you deposit, however, you can withdraw your money and close the account. Be sure to read the fine print before signing up.

Municipal Bonds

If a state level governments needs a loan, they issue municipal bonds. A couple of things that makes these bonds so attractive is the fact that they are tax-exempt, and the fact that they are extremely safe. Municipality bankruptcies are not unheard of, but they are very rare. Read this beginner’s guide from for more information on how to get started with municipal bonds.

There you have it – five simple and low-risk ways to earn a few hundred bucks on the side. Not bad for something you can do online and in no time!





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