If you ’ rhenium looking for other ways to invest, but don ’ t have much cash, hera are ten of the best ways to invest $ 500 or less .
1. Micro-Investing
With micro-investing, you can start investing with american samoa little as $ 5. This makes it the perfective option for college students or anyone who wants to invest but doesn ’ thymine have much disposable income .
There are enough of micro-investing apps you can choose from with an initial investment of $ 500 or less. These apps are easy to use and cater to brand-new investors. To learn more about micro-investing, here are five apps you can look into.
Reading: 10 Smart Ways to Invest $500 or Less
Robinhood
Robinhood is an excellent choice for newfangled investors. There ’ second no minimal balance wheel to open an account with Robinhood, and the company doesn ’ deoxythymidine monophosphate charge any trade fees. And the company ’ south app is relatively intuitive to use .
Plus, Robinhood is one of the few micro-investing platforms that let you trade fully stocks, reciprocal funds, options, and cryptocurrencies .
Acorns
Acorns is one of the easiest and most low-cost ways to start investing. There ’ s no minimum balance wheel required to sign up for Acorns, and the company entirely charges $ 1 per month .
After you sign up, you ’ ll connect your Acorns history to a citation or debit tease. then, every clock time you make a purchase, Acorns will round that leverage up to the nearest dollar. Once you hit $ 5, Acorns will begin investing that money for you .
Stash
Stash caters to all different types of investors. When you sign up, you ’ ll take a brief survey to determine your flush of gamble tolerance when it comes to investing. From there, you ’ ll pick how a lot and how much you want to invest .
And Stash lets you choose the types of companies you want to invest in. So, for case, if you ’ re only interested in investing in eco-friendly companies, you can specify this in your profile .
Betterment
Betterment is a dependable option for anyone concern in micro-investing but wants to have a little more command over their investment portfolio. The caller does the invest for you but allows you to work with a fiscal adviser and have more say in your investments .
There are no minimum libra requirements to sign up for the company ’ s most basic design. however, the ship’s company does charge a 0.25 % monthly fee on your investments .
Rize
With Rize, you can save or invest money. even if you equitable want to set up a savings account, Rize will pay interest on your account, and your returns will be much better than what you would earn at a bank .
To get started, you ’ ll set up your savings goals and timeline. From there, the company recommends how much and how often you ’ ll want to save to meet your goals .
2. Commission-Free ETFs
If you are interest in investing, you may want to learn how to do it yourself. In that case, commission-free ETFs are a great option if you want to invest $ 500. In addition, ( exchange-traded funds ) ETFs are a type of reciprocal store, so you can purchase several different investments in one transaction. This allows you to diversify your investment more than if you precisely bought individual stocks, and you can do it even with a little come of money .
3. Buy Bitcoin
For some, investing in cryptocurrency may be besides bad and volatile for their taste. however, Bitcoin has had an average increase of over 100 % per class for the past 12 years ! In fact, if you would have invested $ 500 in Bitcoin five years ago, you ’ d have approximately $ 90,000 nowadays .
If you ’ re concerned in getting into crypto, Coinbase is a great place to start. They ’ ll give you $10 in free Bitcoin when you buy or sell $ 100 or more in crypto. They besides offer ways for you to earn up to $ 32 worth of crypto for barren .
4. Open a Roth IRA
If you haven ’ thymine started saving for retirement, you should seriously consider opening a Roth IRA. This retirement savings plan allows you to contribute after-tax money to your investment history. So finally, when you reach retirement long time, you can withdraw that money tax-exempt .
however, there are a few things you ’ ll need to know before opening a Roth IRA. First of all, you should only open an individual retirement account ( IRA ) if you ’ ra prepared to leave the money there.
If you withdraw the money before you ’ ra 59½, you ’ ll end up paying penalties. sol if you think you ’ ll necessitate to take your money out early, you should consider one of the early options on this list .
5. Start an Online Business
If you ’ rhenium looking for an unconventional way to invest your money, why not try starting an on-line business ? traditional brick-and-mortar businesses require a set of capital to get up and running, but the same can not be said for an on-line business .
You won ’ t need function space, a warehouse, or expensive equipment. In all likelihood, you won ’ t need to invest $ 500. It will cost much less than that. here are some popular on-line business ideas :
- Starting and monetizing a blog
- Selling things on eBay or Craig’s List
- Selling services like freelancing writing, editing, or graphic design
- Opening an e-commerce store
- Buying items and flipping them for profit
6. Use Robo-Advisors
And finally, you might consider using a robo-advisor to invest your money. A robo-advisor is a simple on-line investment platform .
When you sign up, you ’ ll filling out a list of questions, and the company will create an investment portfolio for you. Robo-Advisors tailor your investing portfolio to you and how conservative or hazardous you are .
A robo-advisor will have fewer capabilities and services than you ’ ll receive if you work with a fiscal adviser. For model, you won ’ thyroxine receive personalized advice based on your fiscal goals .
But the fees are low, and it ’ s a big way to invest $ 500 in the stock market. Robo-advisors besides offer several invest options, including :
- Roth IRAs
- Traditional IRAs
- Solo 401(k)s
- Taxable accounts
7. Open a High-Interest Savings Account
If you ’ re not quite ready to start invest, then you could try opening a high-interest salvage account. This is an easily, low-risk manner to start earning interest on your money. The median high-interest savings account pays about 1 % in concern .
Of path, you ’ re not going to get the same kinds of returns that you would if you invested that money in the lineage market. But this is a better option than doing nothing, and your savings account could serve as a long-run emergency store .
8. Pay Down Your Debt
Paying down your debt is one of the best investments you can make in your future. This is particularly dependable if you have high-interest credit rating calling card debt. According to the Federal Reserve, the average interest pace on a credit rating poster is fair over 15 % .
And if you don ’ t have a good credit score, your APR will likely be much higher. A gamey APR can add up to hundreds of dollars in interest every month. sol by paying down your debt, you ’ ll be saving yourself thousands of dollars over the adjacent class .
9. Try Peer-to-Peer (P2P) Lending
Peer-to-peer lend is an alternative to traditional lend. alternatively of taking out a loan from the savings bank, borrowers use services like Prosper that connect them to investors like you .
P2P lend platforms allow you to earn a fixed monthly income by lending to individuals or companies. The money is deposited immediately into your account .
10. Invest in Your Financial Education
possibly the best investment you can always make is investing in yourself and your fiscal education. For $ 5- $ 15, you can buy some of the best personal finance books or audiobooks. For example, bang-up books like Rich Dad Poor Dad are available on Amazon for $ 11.36 for the paperback book edition, $ 6.82 for the Kindle adaptation, or $ 14.95 a month for an audible membership.
You can learn how to invest in real estate of the realm, how to make money in the stock market, how to manage your money, how to get out of debt, how to achieve fiscal freedom, and thus much more .
If books aren ’ t your matter, there are plenty of cheap on-line courses. It ’ s truly amazing how much capital education you can get for less than $ 500 .
Bottom Line
hopefully, this article has shown you that investing doesn ’ t have to be confusing or expensive. You can get started right away with very small money. And if you aren ’ metric ton ready to invest just so far, you can focus on paying down high-interest credit circuit board debt, boosting your income, and saving an emergency fund .
