There is one major excuse for people to keep playing these HYIP games with $10 to $100 "investments". And the excuse is simple...
Not Enough Money To Invest I don't want to be blunt, but basically you can't really make any investment with $10 or even $100. At the very minimum, you need at least $500 - $1,000 to start doing some real stuff.
Playing the HYIP game is one method to turn your $100 into $1,000. But it is not the best method and certainly the chance that you'll lose that $100 are better.
If you don't have at least $500 to invest, I can suggest you some or combination of the following:
- Save money from everyday expenses. It may sound frustrating, but you need to save only $1.37 per day in order to save $500 for one year. That's just a bottle of beer, so next time when you are buying, think about this: do you want a bottle of beer and an excuse to play games, or you prefer no bottle of beer and no excuse?
- Work more. This usually isn't the thing to recommend, but just for getting your initial capital, it's the best and most secure thing. Raize your salary/income with just $50 monthly and you'll have $500 in just 10 months.
- Sell your car/bike and buy a cheaper one. Sounds horrible? Do you want financial freedom or not? Lower your lifestyle for a while and you can change your life for good forever
- Borrow money. In some countries the banks won't give loan for investing, but there are pretty many non-bank institutions who would. And finally, you have friends and probably parents. Ask someone, $500 or $1,000 is really not that much
So How To Do High Yield Investing with $500 - $1,000? "The good deals are only for people with millions, no?"
Actually no. The big guys certainly do have access to deals that me and you don't. But one billion of dollars is much less liquid than $1,000. Have you heard Bill Gates making 100% per year on his 50 billions?
Well, you can make 100% per year on your $500 - $1,000 bucks. How?
- Put into aggressive mutual funds. This is usually the best advice for the beginner investor. The main problem is the return is rarely hot enough to produce big gains on small investment. If a good aggressive mutual funds averages ROI of 30% per year, this means $1,000 will turn into 13k for 10 years. Not bad, but not earth shattering either. So if you choose this way, you have to keep investing over time.
- Invest in a good managed forex account. This is great, if you can find one which accepts such low minimum investment. Currently GalleonFX and FXCM both accept $1,000 minimum. For GalleonFX this is valid only for October, so hurry up. A good managed account can achieve 50% - 100% yearly ROI which means your $1,000 can turn into $57,000 to 1 million in ten years.
- Trade forex or stocks yourself. This is a good option, but only if you are already educated how to trade. Otherwise you'll have to spend time and money on education.
- Trade by signals. If you have to pay for forex, stocks or options signals, you'll need more than 1k. But if you use free ones (there are such options available), you can start even with $500 and turn them into tens of thousands withouts big knowledge.
- Start a web based business. $500 is not enough to start offline business, but for web it could be a good start. $500 or $1000 can be enough to boost your site with some targeted advertising or to pay for professional design or to hire copywriter who to write good articles (or all of these if you can manage with low cost providers).
- Buy a website. A good deal in the web is considered a website which is sold for a price which equals about 12 monthly incomes. This means 100% yearly ROI with less risk than in forex. And you can find even better deals.
- Invest in education. This is usually not my recommendation. Why? Because education prepares you for work, which is not your target. There are two cases in which this remains the best options however. First, if you want a better job so you can earn and save more for future investing, it may worth it. If an education costing $1,000 can raise your monthly income with $300, this means in one year you'll have $3,600 ready for investing instead of the $1,000 that you started with. The second good case is when you invest in good trading or business course which can drastically imrpove your investing results in the future.