Investments are a wise way to potentially make some extra money. After all, some minor stakes in a company yield high returns. This is especially the case for penny stocks that require less than five dollars per share. If you’ve been wanting to learn more about this specific type of stock and how to best navigate investing, then keep reading for tips and ideas on how to spend your earnings from penny stocks.
What are penny stocks?
Generally speaking, penny stocks are considered any stock that you trade for less than a single dollar. However, this has changed to be considered stocks below five dollars. Most companies that offer penny stocks are much smaller since their worth isn’t yet incredibly established like large corporations. When you invest, you’re buying a share, or a small portion, of their company.
For this reason, your investment in penny stocks is highly volatile, which means they have the potential to rise quickly in value but can rapidly drop in value as well. With great risk comes possible reward, but it’s also a possibility that you could lose your initial investment.
Which are the best?
Now that you’re familiar with penny stocks, you might be wondering where to find the best stocks to begin your initial investment. Depending on which investor you ask, you’re likely to get a ton of different answers as to which stocks and kinds of trading styles are most efficient. However, there’s never truly one predetermined superior stock or means to invest your money.
Instead of blindly choosing your desired stock, consider checking out lists that outline the best penny stocks in the current climate. To name a few of these penny stocks to look out for, there is 5N Plus, American Lithium Corp, Cloud MD Software & Services, and Drone Delivery Canada. Take note that these are just a few stocks that have shown promise in growth over the last 12 months, so they have the promise to possibly earn you some extra cash.
Take a vacation with your earnings.
Let’s say you’ve made your initial investment, and you see that with patience, you’ve made some earnings. If this happens on your first investment, then congratulations are in order. To start off celebrating right, spend your earnings on something memorable like a Mississippi vacation for you and your partner or the entire family.
Even if you didn’t earn enough to pay for the entire trip, any extra sum of money is a great start to pay for a large portion of the vacation like the lodging, travel, or food. Mississippi is the perfect choice because it offers plenty of natural and historical destinations for an affordable price. While on your vacay, check out The Grammy Museum, a ghost tour, a trip to the Gulf Coast, or the historical Natchez Trail.
Reinvest the money in various ways.
Maybe a vacation isn’t your idea of how you’d like to spend your earnings. And, if that’s the case, then these options might be a better fit for you. One thing to consider is to take your earnings and reinvest them into another stock that could bring in more money. Or, find other outlets of investment. For example, use your earnings to fix up your home.
Certain home renovation projects that are affordable and will provide a better return on investment are projects including things like a kitchen renovation, master bathroom upgrades like new bathroom backsplash tiles or tub, and even flooring upgrades. You could also use your investment money to change up your outdoor patio or porch! This way, you get to take your earned money from penny stocks to further enjoy living in your home while simultaneously adding value for future potential sellers, too.