7 BEST Small Investment Ideas for Low Income Earners in 2023

A low-income earner should consider investing or starting a business because it can provide an opportunity to build wealth and increase income.

Investing in stocks, real estate, or other assets can provide the potential to earn returns that are greater than what is available from savings accounts or other low-risk investments. Starting a business can also provide the opportunity to earn more income, which can help to improve financial stability and increase wealth over time.

Both investing and starting a business involves some risk, so it’s important to do your research before getting started. But with careful planning and execution, these activities can be a great way for low-income earners to start building long-term wealth and stability.

Who is a Low-Income earner?

A low-income earner is somebody who earns a low wage. Low-income earners are typically employed in low-skill, low-paying jobs. The majority of these workers are women, minorities, and immigrants.

There are many challenges that low-income earners face. They often have to work multiple jobs in order to make ends meet. They also struggle to afford basic necessities such as food, housing, and healthcare.

Additionally, they are less likely to have access to education and training opportunities that could help them improve their economic situation, this is why investing in a small business or going into entrepreneurship can be a smart move for small income earners.

In this guide, we have prepared 10 of the Best Small investment you should consider if you’re a low-income earner.

Online Business

There are a few reasons why a low-income earner should consider starting an online business. For one, online businesses can be started with relatively little up-front investment. And once the business is up and running, the overhead costs are minimal compared to traditional brick-and-mortar businesses.

Another reason to start an online business is that there are many different ways to make money online. For example, dropshipping, retail arbitrage, affiliate marketing, digital marketing, and blogging are all viable options for people with limited financial resources.

Finally, starting an online business can provide a much-needed source of additional income. This extra income can be used to pay down debt, save for retirement, or simply cover day-to-day expenses.

Real Estate Investing

One of the best ways for low-income earners to build wealth is to invest in real estate. Real estate investments can provide a stream of passive income, and they typically appreciate in value over time.

There are many different ways to invest in real estate. For example, you can buy a rental property, invest in a real estate crowdfunding platform, or purchase shares in a real estate investment trust (REIT).

However, it’s important to remember that real estate investing is not without risk. There is the potential for losses if the property value decreases or if the tenant doesn’t pay rent. So it’s important to do your research before getting started.

Mutual funds

Mutual funds are a great way for low-income earners to get started investing. A mutual fund is a collection of stocks, bonds, or other securities that are managed by a professional investment company.

When you invest in a mutual fund, you are pooling your money with other investors to purchase shares in the fund. This allows you to spread your risk across many different securities. And it also gives you access to the expertise of professional investment managers.

Mutual funds are relatively low-risk investments, and they offer the potential for returns that are higher than what is available from savings accounts or other low-risk investments.

Dividend investment

Dividend investing is a form of investing in which the investor buys stocks or shares in companies that offer regular dividends. These dividends can be used to supplement the investor’s income, thereby allowing them to live a comfortable lifestyle even on a low income.

There are several reasons why dividend investment may be a wise choice for low-income earners. First, by investing in dividend-paying stocks, the investor can create a regular stream of income that will provide them with financial stability. Second, dividend stocks tend to be less volatile than other types of stocks, making them a safer investment choice. And finally, by investing in dividend-paying stocks, the investor can actually increase their portfolio’s overall return potential.

Fixed Deposit Account Investment

A Fixed Deposit Account (FDA) is a type of investment product offered by banks and other financial institutions. An FDA allows you to deposit a fixed sum of money for a specified period of time, at a fixed interest rate. At the end of the term, you’ll receive your original deposit plus all the accrued interest.

An FDA can be a great way to save for short or long-term goals. The interest rates on FDAs are generally higher than what you’ll find on savings accounts, and in some cases, you can earn up to 20% of your capital per annum. So if you’re looking for a safe and secure way to grow your money, and FDA could be a wise choice.

Invest in lending Business

There are a few reasons why low-income earners should consider investing in lending businesses. The first is that, by investing in a peer-to-peer lending platform, you can get access to higher interest rates than what you would typically find at a traditional bank.

This is because peer-to-peer platforms don’t have the same overhead costs as banks, so they can afford to pass those savings along to their investors.

The second reason is that, through platforms like Prosper, Upstart, Lending Club, and Peerform, you can invest in loans made to people with good credit scores. This gives you a chance to earn high returns while reducing your risk exposure.

Direct Sales or Multi-Level Marketing

There are a few reasons why low-income earners should consider direct sales or multi-level marketing:

Direct sales and MLM businesses offer flexible work hours and the ability to work from home, which can be especially appealing for low-income earners who need to balance work with other responsibilities.

They offer opportunities for residual income, meaning that you continue to earn money even after you’ve stopped working. This can be helpful for low-income earners who want to achieve financial stability.

Even more, there are opportunities for personal growth and development, which can be valuable for low-income earners who are looking to improve their lives.


While there are many small investment ideas to choose from, not all of them may be a good fit for your specific financial situation. We’ve highlighted seven options that we believe will be among the best small investments in 2022 for low-income earners.

Do your research and consult with a trusted financial advisor before investing any money to make sure these types of investments align with your overall financial goals. Thanks for reading!

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