Frugal Investor? Here Are Some Safer Choices To Make With Your Money


Investing doesn’t come cheap. As the saying goes, it takes money to make money and investments are a prime example that illustrates that point incredibly well. For instance, if you put money into a business, it’s still an investment that you hope to receive a return on in the future. The amount of money you put in can vary, but it goes without saying that the more money you contribute to your business, the larger the possible returns. 

If you’ve yet to invest your savings into anything then it’s likely because you’re concerned about the future of your money and how you can best put it to use. Some people prefer safe investments such as a student loan, a home or even their child’s college tuition. These are all great, but what if they don’t apply to you? What if you’re content with living at home because your parents will pass down their house to you in the future? What if you don’t have plans to start a family yet? What if you’ve already started a few businesses and decided that studying at an educational institute isn’t for you? 

In this comprehensive article, we’re going to be talking about safer frugal investment choices that are designed to make you money with little capital. Yes, investing can sometimes mean investing in your future and making your retirement more comfortable, but we’re more interested in the art of making money and growing a profit.

But First: A Word of Warning 

We used the word “safer” in the title for a reason. No investment is ever safe and completely secure–that’s just how the world works. You might tell yourself that there are risk-free investments because your friend said so, or you may have read those clickbait articles that advertise investments that are totally safe and have 0% chance of failing. 

Those are all lies. There are no guarantees in life except death and taxes (including those taxes eating into your investment returns). 

Drill it into your mind that no investment is safe. Not even investing in a retirement fund or paying for your child’s college tuition can be considered safe. What if you pass away before you can spend your retirement? What if your child leaves college because they’ve found another path in life? It’s certainly not a positive thing to think about, but it has to be said to help you embrace the reality of what it means to invest.

Investing In Trading 

Trading is the wild west of investments. Some traders can make lucrative sums of money and live off their exploits, but some are burned within the first few months and can even land themselves in debt. The biggest thing to remember is that trading is not gambling no matter how you describe or try to twist it. If you think that trading is gambling, then you either haven’t researched enough about trading or you’ve lost your way and have been trading like a gambler, not a trader. There are many keys to successful trading and you need to develop a plan if you want to be successful and make a living from it. 

• Treat it like a business. Give trading the respect it deserves. Don’t treat it as a part-time hobby or just something you do for an hour each day to hopefully make a profit. That’s the type of mentality that will quickly turn a respectable career choice into a destructive gambling addiction. 

• Make use of technology. Trading is competitive and everyone seeks to gain an advantage. Most of the time, these advantages can be had with the help of technology. Take a look at various trading technologies and learn how you too can get the upper hand over your competition. 

Always go in with a plan. They say that plans are meant to be broken, but it’s still incredibly foolish not to go into trading without some rules. It’s time-consuming to create a plan, but it’s an essential part of what makes trading less risky than you might think. 

Don’t risk what you can’t afford. Frugal investors all understand this. If you’re not willing to lose money, you should not risk it. When you start going all-in with your money or borrowing from lenders just to trade with, you’re heading down a self-destructive path that can ruin you financially and mentally. 

Learn to hit the breaks. Know when to stop. If a trade isn’t going your way, pull out and sell at a loss. If you’re feeling emotional and your mind is hazy, stop and relax for a bit before coming back to your computer. 

Give yourself time off. Much like any job, it’s important to take a break from trading now and then. Don’t stress yourself out too much and remember to treat your trading like a business or a career. 

Assuming you follow these tips, it’s possible to go from zero to hero as a trader. It takes a lot of studying and educating yourself on current affairs to really make trading go far, but it’s entirely possible to do so on a budget.

Investing In Growing Sectors 

There are many growing sectors in the world that are all looking for money in order to grow their respective industries. For instance, investing in healthcare is almost always seen as a good choice because it’s something that is always in demand. Healthcare is always increasing in cost and our population is not going to get younger. We’ll always be looking for ways to improve our healthcare and we’ll always be researching to rid the world of nasty illnesses and diseases. 

However, investing in immediate healthcare solutions is just one end of the spectrum. On the other end, there are research and development companies that are constantly looking to push the boundaries of our knowledge. For example, Poseida Therapeutics is one of the world’s leading developer of life-saving targeted therapeutics. They specialize in areas that are largely ignored by other medical companies and their technologies are constantly innovating and growing in order to meet long-term goals that they set themselves. In other words, companies like this are game-changers that deserve attention due to the way they’re growing our healthcare options, not just refining them. 

Healthcare is just one of many growing sectors that we can safely invest in. With so many booming industries to invest in, it almost feels like we can simply pick and choose what we believe the most in. Whether it’s robotics and the future of automated labor or synthetic lubricants to help the industrial sector, find something that you can personally connect with if you want an investment that really shines. Even if you’re a frugal investor, putting your money into something that you believe in will yield better results than something you aren’t emotionally attached to.

Investing In Your Own Business 

Of course, we can’t get through an investment-related article without mentioning the formation of your own business. Starting your own company will seem scary, but it’s arguably one of the safest investments to make because you’re actually in control of everything. The success or failure of your business rests in your hands, and that may seem like a bit too much responsibility for some people. For others, that’s an invitation to success and you’ll find that many people revel in that kind of responsibility because they’re confident. 

Confidence is one of the biggest factors that will determine if your business is a success or not. You’ll find that confidence also helps you network with other businesses, speak with clients and generally improves your overall ability to be a successful business. There are also many frugal ways to start a business, making it something that is relatively low-risk and high-reward especially when you consider some of the other investment options available. To give you some advice, here are out top frugal business startup tips that will get you going. 

• Start from home. Thanks to the internet, it’s possible to start a business from home and grow it in the comfort of our office chair. Don’t worry about renting an office space and stop thinking about what hardware you need to equip your employees with. 

• Use technology wisely. Technology is great. It allows us to automate more and do more for less money, but it’s also expensive. Many businesses fall into the trap of purchasing too much technology and they’ll end up with high fixed costs that eat into their profits. Only get what you need and learn to operate with less. 

• Utilize social media. Social media is arguably one of the best ways to promote your business if you know how to work a crowd. It’s frugal or free compared to typical advertising and often connects with a larger audience if you’re smart about it. 

• Outsource when possible. Hiring employees is expensive, so learn to outsource work or look for freelancers to help you get extra work done. 

These are just a couple of simple frugal business tips, but you can find more all over the web. It’s good to remember that, out of all of these choices, investing in your own business (while keeping your personal finances disciplined) is perhaps the most lucrative way to turn a small amount of money into a large fortune.


I hope you enjoyed this article about frugal investing and making safe choices with your hard-earned money.

Interested in more articles about frugal finance and investing?

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