3 Ways to Diversify Your Financial Portfolio on a Budget

Making major financial decisions is difficult for me. Money is never available. It’s a constant state of living hand-to-mouth. One month merges into the next with no real solution in  sight. Over the years, I have researched several ways to live frugally and make wise investments. Rich Dad Poor Dad was, and continues to be, one of the best wealth development books I have ever read. There are some principles that I’ve learned from that book, and other sources, that have shown me that it is possible to create a diverse financial portfolio on a tight budget. Over time you’ll be able to count your money like the image shown below if you effectively follow these strategies.

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Attempt Forex Trading

Forex trading is a high risk investment. When I say high risk I mean HIGH risk. You can win big, but you can also lose even bigger. It’s a big gamble. I know people who’ve used eToro and xMto trade their own money.  Using these platforms gives them greater control of what they invest in and eliminates the middle-man. I’ve learned 4 things from them:

  • Start with a demo account. Demo accounts allow you to simulate trades using fake money. Don’t dive in headfirst. You’re entering uncharted waters. Test them out first before using any of your own money.
  • Start small. Only use a small amount of your money as a beginner. I started with 300USD. That way, if you make any losses you won’t be adversely affected.
  • The forex market is highly volatile. Several factors affect forex rates including current events.
  • Practice using various strategies. Forex trading is something you master over time. You have to practice continuously and identify strategies that truly work. Watch as many video as possible. Read as much as possible. Mimic successful traders. Try to learn as much as you can before making any big investments.

Invest in Stocks and Bonds

You can use the same platforms mentioned previously to invest in stocks and bonds. Stocks and bonds are long term investments. Therefore, you can’t expect results as quickly as you would with forex trading. These low to medium risk investments add somewhat of a buffer to your investment strategy. Play your cards right and you could see significant returns in one or two years.

Support a Business

I am surrounded by a talented cadre of friends. Some of them have sound business ideas and just need some amount of capital to get off their feet. If I were able to, I would invest in these businesses. Sometimes, all your friends need is a small injection of capital to get their businesses off the ground. Come to an agreement to invest $X with the understanding that you would take $Y from profits until you’re able to recoup your money plus some interest.

These three strategies are some of the best ways to invest with limited capital. When you begin to earn more money you can invest in real estate, farming, and other ventures that require a large amount of capital. The point is to get started.


Christine is the founder and CEO of CEM Writing Services. She writes content in a variety of niches and focuses on content marketing and social media marketing strategies. Contact her at cemwritingservices.com to learn more. 



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