Lux Investing - Can I earn supplemental income through investing?

Can I earn supplemental income through investing?

I have a few thousand dollars I can invest, but I also would rather not invest in anything too risky as I don't want to lose much. I am hoping to supplement my regular income by possibly a couple hundred dollars a month. Is this possible? How would I go about doing this? I already have small investments in mutual funds and stocks and a savings account. My savings account earns me about $20 a month through interest. I need to earn an extra $200 or so to help pay my bills. Any advise? I did actually just read Rich Dad, Poor Dad and have done some preliminary investing. I don't have much to spare at the moment though. I have a few thousand (around $3k) Id be willing to invest. I'm 26, want to start saving for retirement (I started a Roth IRA and I have a 401k at work) and also would like to buy a house at some point in the next few years. Right now though, I could use some extra income as my job doesn't pay that well, though I really enjoy it and don't want to leave ...

Public Comments

Assuming you're here in the USA I suggest an investment in Thronburg Mortgage shares. Here's why: Current SAFE DIV YIELD 10%, they borrow at low short-term rates...lend to SAFE borrowers at higher long-term rates...collect the spread and resulting profits. Of the 38000 loans the company has outstanding only 78 are 60 days late or worse. You can currently buy the shares at a 20% discount due to the "credit crunch". Suggest agressive purchase...yes I own shares and am happy so far. PEACE!
You cannot make $200 a month speculating on anything. Don't do it.
A lot of time reading and learning is the first requirement. 2nd would be a good understanding of "money Management". "Stops" on every order is a must. You'd have to size your positions by the amount you are willing to lose and where the logical place for a stop would be. I'd shoot for a 2/1 win loss ratio to start (minimum). Keep in mind "trading" either daily or a "swing basis" is considered very dangerous. If your funds are limited or you can't handle losses... trading is not for you. Good traders will lose 40-50% of their trades. Poor traders lose more because they don't manage their exits/stops. This is very dangerous territory. Take at least a year to read as much as you can. A great book to start with; "Mastering The Trade", by John Carter BTW: "TheBig5...." and "John" are a great example of what not to do.
I am a lender on Prosper. You can loan out personal loans by pooling your money with other lenders. I started with $1,100 and I currently have $2500. I am getting about $40 a month of interest. I withdrawl a certain percentage each month and reinvest the rest. Use the link below to check it out. My average rate that I earn is 16%. The lowest that I have received which includes the fees is 13%. The percentage depends on the risk level of the loans that you fund. I have only had one default.
If by a few thousand you mean $3000, then realistically you should not expect to make any more then the long term average return of the stock market which is about 10%. This means $300 per year, not per month. That being said, if you buy the right stock at the right time, you could make huge returns, however the likelihood of you doing so is slim to none. I recommend you go to the library and read a few investment books. The best way to get a few extra hundred a month for the average american is to cut some costs. Eat out less, quit smoking, quit starbucks, etc. Don't look to get rich quick in the stock market or you will more than likely get burned. Best of luck to you!
Why don't you tell us what you mean by a few thousand dollars. It would take about $50,000 to generate $200 a month at a 5% interest rate. Please read my profile and send me an email so we can have a meaningful discussion.
Unless you're already retired, it's best not to use investment income to cover current expenses. If you reinvest your investment income, you compound your wealth. Compounding is the most powerful wealth building tool a typical investor will have. If you spend your investment income, you lose much of the ability to build wealth for the future. The best thing to do now is cut back on your spending and reinvest your investment income.
I'd recommend before investing; read up on it and educate yourself on what the possibilities are. Investing is not a product or something you just buy... it's a mindset and a philosophy. It's a plan. You have some capital, and you have a goal. There are many ways to earn an additional $200/mo.. whether it's paper assets (stocks, bonds, mutual funds), real estate or some business. My favorite book that started everything for me was: Rich Dad Poor Dad by Robert Kiyosaki. I'd recommend reading it before committing your funds anywhere.