For many investing is like a pie in the sky — impossible. Risking even the littlest amount is not easy, especially when we only earn just enough. But, what should we do to grow our financial portfolio? When should we start doing something to achieve financial wellness? The money we keep in our banks will not grow, that’s for sure. But with as little as $500, you can start investing.
If you think investing $500 is a pipe dream, you have not explored enough types of investment yet. Investing may sound daunting, but as most people say: “there is no perfect time to invest than now.” Good thing we created a list to save you the hassle of researching where to invest your $500.
Savings vs Investment
While saving and investing are similar in some ways, they actually have a big difference from each other.
Saving means keeping the money for future expenses or emergency funds. It means you have to keep your cash in-store somewhere for later use.
Investing is where you put your money and expect it to generate income for some time. It is like you put your money to work and gain more profit.
Ideas where to invest your $500
To help you start your investing journey, we listed below a few tips on how and where you can put your money at work:
- Individual Retirement Account. According to Investopedia, an IRA is a savings account with tax advantages that individuals can save and invest long term. There is an IRA Roth plan where you can invest as low as $500
- Gold. Gold or jewelry are always valuable. Sometimes they get higher values over time.
- Buy Certificate of Deposit. There are a few banks that offer Certificates of deposit as low as $500. It is like a time deposit where you agree to keep your bucks for a specific time and let it mature with the bank rates and stocks.
- Mutual funds. If you are not yet adept in the stock market, you can invest your money in a mutual fund. Money professionals will collect your investment together with other investors. They will manage your fund in stocks or bonds to attempt money gain.
How to jumpstart your investing journey?
Buying an ice cream when you crave sweets is not like investing. There are countless preparations you need to start investing. You need to prepare yourself if you are ready to take a risk on your hard-earned money. You bet your money on various things, so you need to learn a lot about investments. Here are a few points you should know:
- Be willing to learn
- Finding the right platform to invest.
- Build your investment strategy.
- Know the market.
- Long-term commitment to investment.