Investments To Consider With Excess Monthly Income

The goal of many people planning for their retirement and looking to build a nest egg is to maximize their income potential. Putting excess income into a savings or checking accounts does not give that money the ability to grow. These accounts offer extremely low interest rates while there are safe investments available where an investor can earn exponentially more in interest. The best type of investment portfolio is one that has quite a bit of diversity so the investor has the financial security many people yearn for. The following are a few ways a person can invest their excess money at the end of the month.

Investment Property

Investment properties can offer huge financial opportunity especially if the property is purchased at a low price. Many people want passive income when investing in these properties so enlisting the help of a property management company becomes essential. These companies write up leases and handle the day to day communication between the tenants. These companies also do a thorough job of checking into the rental past to see if they have had any evictions on their record. The lawyers that these companies have on retainer can also help recover rent that is delinquent. Having a company handle all of these issues leaves the owner collecting a check month after month.


The stock market is a great place to invest if the investor has particular knowledge on a certain industry. Following large financial firm’s predictions can allow a person without this knowledge to invest in an educated manner. This does not guarantee success as these firms can be wrong on certain companies or industries. The stock market is not all high risk as other options of investment are possible. Mutual funds can allow a person to maximize their earnings without much of the risk that some stocks might carry. The earning potential obviously decreases with this type of investment when compared to a high risk stock but this is great for a person getting close to retirement.


Cryptocurrency has hit the investing world by storm in the past couple of years. The one issue that many people have with purchasing or trading for these different currencies is the process of doing so. Those who are not technologically proficient can still invest with a variety of platforms. IOTA is a great example, it is a new distributed ledger and the next step in blockchain technology, offering a feeless and scalable platform. Take a look at the different currencies to see which can offer the best return on investment.

Paying Off Current Debts

The first thing that should be done with excess income is to pay down any current debts. Those debts with the highest interest rates need to be targeted along with those that have the highest balances. Paying an extra $100 on a mortgage can result in years taken off of the mortgage. Set a goal of when to pay these debts completely off so the monthly budget can reflect that goal. Small things like saving on the electric bill or getting rid of cable in favor of streaming services can add up. Putting these savings into debts along with excess income can result in a person becoming debt free far in advance of their goal.

Excess income at the end of the month is the opportunity to allow the money earned to continue earning at a reasonable rate. Find a few outlets to invest and test the waters as this can result in life changing income month after month.

Melissa Thompson writes about a wide range of topics, revealing interesting things we didn’t know before. She is a freelance USA Today producer, and a Technorati contributor.