Most of us start investing in order to make sure we can afford to retire at some point in the future. But perhaps you’re looking to go further than that and find out how to invest and make money daily, to really ramp up the benefits that investing can offer.
It does sound pretty good to think that you’re putting your money somewhere that continues to generate income every single day. And really, the ultimate aim of most investments is for them to continue to grow in value until the day comes where we need to cash out.
But the more you expect to make each day, the riskier the investment can become. And that means the chance of also losing money every day, not only earning it.
So for any investment, it’s important to make sure you’re aware of the risks and comfortable to accept them – and that you’re not pouring your life savings into an investment where there’s a chance that you could lose everything tomorrow.
That doesn’t mean that it’s not possible to invest and make money every day. In fact, some of the recommendations below in order to do this are also great ones to follow for your entire retirement strategy.
But it’s also good to keep in mind that you should be in this for the long haul. This means that making money every single day should perhaps not be your primary goal.
Instead, your main aim should be to grow your wealth over the long term to make sure you’re fully securing your financial future.
How to invest and make money daily
While your overall objective with investing should be to set yourself up for retirement, there still could be room in your portfolio for some other investments that have a slightly different focus.
And if that focus happens to be earning extra income every day, then finding out how to invest and make money daily could be a great way to achieve that as a secondary goal.
Micro-investing is generally done through platforms that help you to regularly save and invest small amounts of money. You’ve probably heard of it in the context of apps that round up your change and invest the rest.
And while you probably won’t earn thousands of dollars with this method, it is a way for almost anyone to invest and make money daily.
In particular, micro-investing can be a good way for someone to start investing who knows they should be, but aren’t really sure where to start.
So the fact they can, say, invest $10 and earn daily interest on that can lay the foundations for building up to investing more significant amounts.
How to manage small investments that make money
Our top pick for getting started with micro-investing is definitely Acorns.
How it works is that every time you buy something on your card or through PayPal, the app will round up the change to the nearest dollar. The rounded up amount is then transferred to a different account and, once it reaches $5, is invested for you.
So if you buy a sandwich for $3.20, Acorns takes the extra $0.80 for you. It means you end up saving and investing every day without even noticing.
Find out more from our Acorns review.
2. High-interest savings account (with interest compounded daily)
While you may not immediately think that keeping money in a savings account can be considered “investing”, this should actually be part of everyone’s investing strategy.
In particular, keeping at least three to six months worth of living expenses in a savings account as an emergency fund should be the first thing you do before starting to invest. That way, you know you’re protected should an unwelcome financial surprise appear one day.
And when trying to find a high-interest savings account, it’s important to check not only the interest rate, but also the fees. There are plenty of great fee-free products out there now, meaning there’s no reason you should be paying to keep your money somewhere safe.
Our recommendation for this is always CIT Bank. Its Money Market account has some of the highest interest rates in the business. There are also no fees and interest is calculated daily, meaning that this is definitely one way to invest and make money daily.
3. Your own side hustle
Investing doesn’t always have to refer to things like the stock market. In fact, putting money into your own earning potential is a great way to invest and make money daily.
And the saying that “you have to spend money to make money” is definitely true when it comes to any income streams you may have outside of your main job.
This is why the best way for you to make more money every day could very well be to put more money into your side hustle to help it grow.
Exactly how that could be done will depend on just what your side hustle is. Maybe you can scale up the amount of stock you have for the product you’re selling or perhaps you could improve the technology that you need to actually make this money, letting you improve the quality or speed of the product or service you’re providing.
Or you could invest this money into yourself by paying for a course that will help you improve your ability to actually make money through this side hustle.
How to earn a daily profit online with your side hustle
If you’re looking for ways to earn a daily profit online, affiliate marketing is definitely one way to do this.
How it works is that you’ll make a recommendation for something on your website. When someone visiting your site clicks this and signs up for the thing you’re recommending, you’ll earn a small commission for doing this.
You have to do it very strategically for it to work well, which is why doing a course about this can be a great way to invest money online and earn weekly – or, once your audience is big enough, even daily.
This is why we recommend the course below for knowing how to do this properly from the start.
4. Index funds
Investing in index funds is the gold standard of retirement strategies. In fact, they’re almost unrivalled in terms of offering a low-fee way to invest in a large portion of the market.
They also offer returns that have beaten managed funds in over 90% of cases. This means that history has shown that choosing to invest in index funds is one of the best ways to experience consistently strong returns over time.
And while you may not consider index funds as a way to invest and make money daily, they work by tracking the performance of a section of the market, such as index funds that follow the S&P 500. As you can see, this has definitely had an upward trend over time:
With the market naturally moving up and down every day, this also means that index funds can make you money on a daily basis. Of course, this also means you can lose money with them every day – which is why the best strategy is to leave your money in there for the long term, to help you ride out any dips.
It’s also worth noting that you’ll only actually make this money when you sell your investments. However, buying index funds is a great way for the value of your investment to grow over time as those daily gains add up.
Buying and selling stocks is probably what first comes to mind when you’re wondering how to invest and make money daily.
Most wannabe investors have probably had dreams at some point of putting a small amount of money into one company’s shares and the value of that company just skyrocketing overnight, allowing you to sell for a massive profit tomorrow.
The act of buying and selling shares over a short period of time is known as “day trading”. As opposed to those who buy and hold for years, with the aim of only selling when they need to fund their retirement, day traders aim to make small (or large) amounts of money over a few days or weeks.
Making something like a 10% daily profit sounds pretty nice, although this presents a pretty obvious risk. That is, the fact that stocks can rapidly go up in price means they can also rapidly drop in price too.
This is why day trading isn’t recommended unless you have money to lose and the time to do your research into what exactly you’re investing in
Can you make a lot of money in stocks?
It’s safe to say that you can definitely make a lot of money in stocks. Some individual investors have built a net worth of literally billions from their investments.
That said, it’s taken time, experience and more than a little luck, in some cases.
But just to highlight how much money you can make on the stock market, some of the world’s most successful investors include:
- Stephen Schwarzman, with a net worth of $18.5 billion. The former managing director of Lehman Brothers then went on to found Blackstone Group, which now manages over $470 billion in assets.
- George Soros, who’s worth $24.9 billion, originally worked as a waiter before starting a highly successful career in finance. This has led up to his current role of being the chairman of Soros Fund Management which, among other things, manages the Quantum Fund. Since its inception in 1973, this has generated $40 billion, making it the most successful hedge fund in history.
- Warren Buffet, who has a current estimated net worth of $64.3 billion. As the face of Berkshire Hathaway, Buffet is easily the most famous investor in the world, having also made billions of dollars for his followers. Funnily enough, he’s a renowned advocate of the index fund rather than something like day trading.
How can I make $500 a day in the stock market, for example?
Being able to make $500 a day in the stock market will depend on how much you’re investing in the first place.
If you only invest $5,000, that would equate to a 10% daily profit, which is not only rare but likely going to be very risky. It’s also very unlikely to be the consistent returns you’ll get over time.
But if you invest $15,000, making $500 from the stock market in one day is only about a 3% daily profit from your investment. Again, this is very good and far from guaranteed over time, especially when you consider that the average annual returns from the stock market are 7% per year.
That said, 3% growth in one day isn’t unheard of, meaning it’s certainly possible to make $500 a day in the stock market. However, if you’re investing in individual companies with the aim to try to make this kind of money every day, make sure you’re giving yourself the time to do your research before committing your money to this.
Even more importantly, make sure you’re doing this with money that you can afford to lose. As this article explains, many day traders risk less than 1% to 2% of their account per trade. If you apply that same rule to your overall portfolio value, you’ll be making sure that you’re protecting as much of it as possible while “playing the market”.
6. Peer-to-peer lending
Peer-to-peer lending, or P2P, is when you pool your money with other investors so that potential borrowers can get loans from this money. You as the investor makes money when the borrower pays back their loan, including taking some of the interest they pay.
It’s not risk-free, as there is a chance that the borrower won’t pay their money back. But when it works out, it can be quite lucrative, as the interest rates are often higher than what traditional lenders offer.
The fact that interest continues to accrue on an ongoing basis while your funds have been borrowed means that this is one way that you can invest and make money daily.
And it has the added bonus of almost being passive income, as once your money’s in the pool of borrowed funds, you don’t have to do anything else to keep earning!
A real estate investment trust (REIT) allows you to invest in real estate without the trouble and cost of buying and managing property yourself.
How it works is that you pool your money with other investors into a trust consisting of various real estate investments. As they earn money, whether it be from rent or from selling them, you then share in the earnings with the other investors.
One way to do this is through a company like Fundrise. They have over 130,000 investors on their books, each of whom pick from a range of portfolios that offer various commercial properties that align with your risk appetite.
Is it possible to invest and make money every day?
It’s absolutely possible to invest and make money every day, although the better question is whether this actually aligns with your investment goals.
That is, if you simply want to buy and sell quite quickly with the aim of making a small amount of money over the short term, then that’s fine as long as you’re aware of the risks.
But if you want to secure your financial future by setting yourself up for retirement, it’s best to keep a long term view of your investments.
Investing consistently is definitely important for doing this, but this also means that it’s also key to continue investing even if you’re not making money every single day.
That is, the market will go up and down – that’s simply reality. And those investors who end up the best are those who continue to invest their money even if there’s a dip. This is because history has shown that those short term drops will, over time, eventually balance out to some very strong returns.
So while investing to make money every day is good, this probably shouldn’t be the main focus of your investment strategy.
At the same time, it’s perfectly fine to keep a small amount of money to the side as “play money”, as long as you can afford to lose it. Whether you want to try a bit of day trading to see what happens or buy some cryptocurrency in case there’s another boom, this isn’t necessarily bad for your overall financial objectives – as long as you’re realistic about the possible (negative) outcomes.
How do investors make money daily?
While investors may choose to put their money to work in different ways, they generally make money daily in the same, broad ways. That is:
- They have clear financial goals
- They invest consistently
- They do their research
- They have a well-balanced portfolio in line with their risk appetite
- They rebalance at regular intervals
There’s a reason that the saying is that “the best time to start investing was 20 years ago and the second best time is today”. This is because one of the main points that will lead to someone being a successful investor is the fact that they started doing so early.
But the other points are also important. After all, pumping all of your money into a company about to go bankrupt is never going to end well, no matter how many years ago you did this.
So set your goals, do your research and stay committed to reaching your desired outcome – which should be in line with the amount of risk you think you can handle.
In doing this, it will make it much easier for you to choose the specific investments where your money ends up.
How do I invest my money to make profit?
It’s hardly controversial to state that the aim of any investor is to invest their money to make profit.
And if you’re looking to do this over the long term in preparation for retirement, you can’t go wrong with investing in low-cost index funds.
They provide for basically as much diversification as you could ever need, with returns that, over time, have outperformed over 92% of managed funds.
If you’d like to protect your portfolio from any major swings, you may also want to look into investing in some bonds. But for many people, that’s essentially the end of where you need to look.
So, sure, you could always dabble in some of the investments listed in this article. As mentioned, micro-investing with a company like Acorns is a good place to start for someone who doesn’t really know how to start investing or thinks they don’t have the money to invest more.
And options like peer-to-peer lending or even day trading can be somewhere to use your “fun money” which you’re ok with losing if things don’t quite go to plan.
But for someone looking to achieve solid returns and pay minimal fees over the long term, having a balance between low-cost index funds and bonds in your portfolio is one of the easiest ways to achieve this.
What should I do with 20k?
If you’ve suddenly ended up with $20k – or you managed to save it up over time – you may be wondering what to do with it now.
In response, we always recommend a clear order of how to use this to make sure you’re maximizing the gains you can earn from this. This includes:
- Pay off all high-interest debt. There’s no point investing your money if your returns are going to be eaten away by debt. This means that your first goal always has to be to get rid of this.
- Open an emergency fund. We mentioned earlier that you should be keeping at least three to six months of living expenses in a high-interest savings account, ready to save you in the event of a financially rainy day. Our recommendation for a fee-free version of this with great returns is CIT Bank.
- Contribute to tax-advantageous accounts. This includes things like your 401(k) or Roth IRA retirement accounts, as these not only allow you to invest your money, but you can save a ton of money on tax as well.
- Consider other investment types. This is where options like index funds and the other suggestions on this list come in. That is, while we’re big fans of a well-balanced portfolio consisting of index funds and bonds, there are other steps to do first to make sure you’re getting as much out of your money as possible.
For more information on each of these, check out this article: How to Invest $25k: 13 Strategies to Grow Your Wealth
What are the best investments right now?
The question of what are the best investments right now would be better asked as: what are the best investments for your investment strategy?
And as we mentioned, for most people who are investing for the long haul in order to be ready for retirement, the answer is often going to be a mix of index funds and bonds.
If you’re still a few decades away from retirement, you’re going to want to keep the portion of your portfolio consisting of bonds quite low – if not non-existent.
Sure, having a portfolio consisting entirely of index funds may be quite aggressive and could see you experiencing some pretty major drops during a downturn. However, you’re also at the stage where you have the time to ride these out and the more of your portfolio is made up of index funds compared to bonds, the higher your returns will be.
It’s only once you start to approach retirement, when you’ll actually need to begin cashing out your investments, that you should probably start to swing your investment strategy in a more conservative direction. That said, you may prefer to do this earlier or later, which is why having a good idea of your risk tolerance is important.
But all this means that the best investments “right now” is hard to determine. Instead, keep your eye on the prize that’s awaiting in the coming years or decades, and you’ll be much better placed to figure out what works for you.
Final thoughts on how to invest and make money daily
There are plenty of ways to invest and make money daily, although many of them do have varying levels of risk involved.
Which is why a better way to look at this is how to consistently invest so that your investments can consistently grow over time.
This doesn’t necessarily mean that they’ll make money every single day. But if you have a clear investment strategy and stick with it over time, history has shown that you’ll almost certainly see the value of your investments increase.