Invest $500 or less

You don't need to be a millionaire or have a high amount of savings to start investing. You don’t have to be an expert in finances either, if all you want is to put your money in the investment market.

Did you earn some extra money lately? Did you get to save some cash this month? The first destination for it should be your home’s emergency fund. Once it’s secured, you can start considering the remaining money as investment capital, no matter how modest this budget is.

If you manage to save up to $500 you should consider long-term investments. A very popular one is a 401(k) plan. Its 7% return allows you to invest $500 today and receive $4000 in 2050.

This plan is offered to many workers by their employers. It’s a simple way to invest in your future, as it’s tax-advantaged. The best part is, you can define the amount of money you want to contribute with.

Another option is to invest up to $100. There are online platforms such as Lending Club or Prosper, which allow you to lend small amounts of money. When you receive the money you can make some profits, according to the interest rates.

The profits may be lower than the Wall Street market, but it’s a good place to start. You’ll learn how to invest through first-hand experience.

Lastly, it’s possible to invest less than $100. The profits from these micro-investments involve a lot of luck and risk. Therefore, it’s sensible to save a little more money instead of trusting your earnings to an unpredictable and speculative investment.

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