I am new to investing, and am looking for what is the best way to invest. Due to religious reasons I do not want to make money by interest. Are there any other ways to get a decent amount of earnings short term without interest. Also I am not looking to be making thousands every week, but just a few extra bucks at the end of every month/week.

  • Do you intend to access this "few extra bucks" at the end of each month or week? Or did you mean that you want to see growth over time? – Raze Feb 19 '15 at 15:09
  • Week, and yes, the point I was trying to make was that I don't want something like a retirement investment. – FJam Feb 19 '15 at 15:15
  • Hardly any investments will return "a few bucks" each week, let alone each month, on a regular or irregular basis, without involving interest of some kind from which the company will give you cash return. You could buy a motel, or rent out an apartment on a day-to-day or week-to-week basis, etc., but such operations rarely turn an annual profit (as far as income tax is concerned) unless depreciation of the property is taken into account; there is, of course, plenty of cash flow from which you can take your weekly few extra bucks. – Dilip Sarwate Feb 19 '15 at 15:37
  • Is it okay if the things that you're investing in make some of their income through interest? Because not many companies could operate without storing some of their cash in banks, which of course pay interest back to the company. – dg99 Feb 19 '15 at 16:22

There are several market indices put out by Dow Jones that track companies that are compliant with Islamic investment rules.

You could either find a tracker fund that tracks one of those indices (and is, itself, compliant), or invest directly in the companies that comprise the index.

  • @Downvoter, any comment on what's wrong with this idea? Seems like just plain badness otherwise. – Peter K. Feb 20 '15 at 13:18

The type of investing you seem to be targeting is often called "Income investing". The goal with income investing is generally to maintain the invested principal while having some cash flow generated and disbursed from the invested principal. I am ignoring a discussion of the 4% rule generally associated with retirement income investing.

Most income investing focuses on three sources of return: interest, dividends, or payment for asset use. The first two are probably obvious, the last is where you own an asset and someone else pays you for the use of it. A common example would be renting out real estate.

Expecting a weekly flow is unlikely, you would most likely have to deal with quarterly payments and budget those for your weekly goals.

This might be a useful read: http://online.barrons.com/articles/SB50001424053111904223604579489760514346406

  • This does not seem to be answering the question, which was about finding investments that do not yield any interest. – dg99 Feb 20 '15 at 21:22
  • My understanding of his question was in two parts: (1) a regular cash return on an investment per "just a few extra bucks at the end of every month/week." and " Week, and yes, the point I was trying to make was that I don't want something like a retirement investment", so I tried to help with a brief intro to income investing. (2) "no interest", I expressed that income investing can produce returns via dividends and asset use, such as renting property. Both of which are non-interest based returns. – Raze Feb 20 '15 at 21:51

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