Smart Investments on a Small Budget

There are plenty of small investment opportunities for all budgets. We will present to you the best profitable investment ideas for small investors. Investing in cryptocurrencies is particularly risky since the technology is difficult to understand. A small investment in an asset that you do not control is the best way to lose all or part of your bet.

Finally, diversifying your investments is a great way to reduce your losses. Don’t put all your eggs in one basket. If you invest only in real estate and prices fall for 30 years, you will not have made a profitable investment. If you had the good idea to invest 50% in real estate and 50% in the stock market, the losses of real estate are less and can be compensated by the stock market.

1.Invest in Real estate

Real estate and stocks are the best investments for small budgets. You can invest small amounts in real estate as well as in the stock market. Investing in real estate with a small budget is possible by buying parking lots, cellars or SCPIs. Depending on the city, you can make a rental investment in a studio even on a tight budget.

Invest in parking lots and garages with a small budget

Car parks are the perfect place to invest €10,000. Ticket prices vary from €3,000 in small provincial towns to €30,000 in Paris and large cities. The performance of a car park starts at 4% net and goes up to 10%, or even more. It is a very profitable small investment.

Garages are the best investment when you have a small budget. Try to have multiplied small profitable investments over time. Parking lots are a favorite small investment for beginners because they are easier and more profitable investments than apartments. The law is in favor of parking lot owners. A car park does not need maintenance, which saves the investor costs. Tenants cannot degrade a single piece of concrete or bitumen.

I advise you to aim for areas where parking is complicated. If you are looking for a better return, then car parks in the suburbs will be interesting provided you do not suffer too many rental vacancies. Favor boxes and garages over parking spaces, which are better and more expensive to rent. 

Invest in cellars

Less known than car parks, cellars are also a real estate investment accessible to beginners and small budgets. With 1000 € to 5000 €, you can find a profitable cellar. 

Unfortunately, the number of cellars for sale is very low so you will need patience to invest your money in this niche. The investment remains profitable if it is well chosen.

2.Invest in cryptocurrencies

Impossible to talk about low budget investment without talking about small financial investments. 

Cryptocurrency is the trending investment right now. It is an investment that pays off very quickly. Bitcoin, Ethereum prices vary a lot and fast. It is therefore the ideal way to win or lose a lot very quickly. If you are looking for a risky and potentially very profitable investment on a small budget, then it is definitely worth looking into Alt Coins like Star Atlas or Meme Coins such as wojak finance.

3.Invest in the stock market 

Investing in the stock market with a small budget is an attractive long-term option. Some trade for over €100 but you can save a month or two before buying it. You cannot buy a third or a half of a share. Investing small amounts in the stock market regularly is a great idea. 

When stock prices are high, you buy less, and when prices are low, you buy more. This is an excellent strategy that allows you to buy at a lower average price. As the date of your next investment is known, you no longer hesitate to invest. Emotions are set aside in favor of a more rational and profitable strategy.

Buying shares is a quick and profitable investment even with small capital. The average return is 9% per year. Opening a securities account or a PEA takes an hour and placing a buy or sell order only takes five minutes. Stock prices fluctuate daily and they can lose up to 30, 40 or 50% in a few weeks.  Placing €10,000 on the stock market that is only worth €5,000 six months later can be off-putting for small investors. If this is the case, I advise you to invest your small budget in real estate whose value does not vary so quickly.

4. Create a small business 

Finally, one way to generate money is to create a profitable small business. You can sell products or services and earn money more or less easily. Business creation and real estate have created many millionaires and billionaires since the dawn of time.

A small business can be very profitable, especially in the age of the internet. The structural costs are very low: no staff, premises… Taxes are proportional to the turnover with the micro-enterprise regime and no accountant is required. All that remains is to look for a good profitable business idea.