How to Invest $500

Joseph Meyer
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Best Ways to Invest $500:

When you own a business, it is very tempting to invest your funds back into the company and stop thinking about your personal portfolio. But you should never forget about your own nest egg. The fundamental rules of investing haven’t changed. And just because you are running a business doesn’t mean you shouldn’t consider putting some of your profits back into the table.

Considering the basic principles of investing, one way to optimize the use of your small capital is to engage in comparatively low-risk investing. There are a number of low-risk investments available for private individuals and businesses. For example, you can invest in a mutual fund, or you can look for certain alternative investments with relatively low risk levels, such as treasury bills, gold, silver certificates, and CDs.

The typical investment tips for people who are just starting out usually warn against investing too much in a single equity or single asset class. While this may make sense for children or inexperienced investors, this may not guard you against a potentially bad investment. If you are taking the time to learn about your options, take a deep dive to better understand the asset class and part you want to invest in, then you are ready to take the risk needed to make your investment work.

Micro-savings Apps

If you’re more inclined to the “small nickel” approach to investing, you might want to consider one of the many micro-savings apps that are out there. These apps are designed to help you put away small amounts of money every time you make a purchase with your checking account.

The app saves the little expense that you might not notice at the time, but when added up can be a sizable amount by the end of the month or year.

After putting a certain amount of money in a savings account, the app may give you the option to move the money to an investment portfolio. Or you can keep the money in your savings account and add more of your small savings to the account.

With the exception of Digit (which is only designed to automate your savings), these apps do deduct a small amount as a fee for the service. There are also certain apps that also require a small bit of money to be put into the app before you can use it. So, while many of these apps might be good for you, keep in mind that they will impact your bank account.

Acorns

Stash

I’m a big proponent of saving money and investing for the future. I never want my family to worry about money while they are raising my kids, and I don’t want my investments to take care of me when I’m old.

Okay, so I’m not talking about their gold filled teeth and diamond encrusted Rolexes, but what I’m talking about is having an investment strategy that will provide them with peace of mind while I’m still in my 20’s. The best part about this strategy is that it allows me to invest in areas that will allow me to earn a steady and passive return on the assets that I invest a set amount of money into on a monthly basis.

For me, this strategy comes down to something that most people spend money on on a monthly basis, my cellphone bill. Time Warner has a great concept where they allow me to save a dollar from my monthly bill and then multiply this saved money month after month and then at the end of the year, I can cash out for a lump sum on this saved money. This concept is called a Savings Accelerator Account, and I’ve been doing it for the past two years now.

You can read more about my Twigby savings strategy here.

Qapital

One of the most important things that you can teach your children is how to save. It’s a basic life measure that as a parent you can teach them in a few minutes. And yet, many people struggle to adopt the habit on their own.

For those who find themselves dipping into savings repeatedly or who just need help cutting down on spending, Qapital might be the solution they need – and deserve.

Qapital is a Web-based tool that helps people save money and stop spending it. It’s a handy tool that adjusts based on your spending patterns so that it’s not punishing. If you’re a spontaneous spender, Qapital allows you to save without feeling like you’re depriving yourself. You can still spend some of your savings, but you’ll be encouraged to save more and spend less. This helps people to make small savings adjustments that they can live with and commit to.

Qapital is designed to help you take a more relaxed approach to savings. Users can save as much or as little money as they want, whenever they want. It’s like having a personal debt counselor in your pocket.

Robo-advisors

Just automated the investment advice process and lowered the cost to investors. By using AI and algorithms to automate the investing process, robo-advisors can charge a small fraction of the cost normally associated with humans.

That’s all fine and dandy, but how do you implement automated investing for yourself?

Getting started with automated investing is easier than you think. After all, you’re just using an automated investing tool, not the flash from a nuclear bomb!

First, open an account. Some great robo-advisors to start with include Betterment, Wealthfront, and Personal Capital. As for cost, there’s no risk to try out a service, and these companies come with reasonable pricing for each type of investor.

Next, get your assets in order. These robo-advisors use a sliding scale of investments based on your age, net worth, and risk tolerance. They know that the risk tolerance of retired people is quite different than that of a single person under 30.

You’ll then work with a robo-advisor to create an investment plan that works for you. In most cases, you won’t have to write down every financial detail of your life, which can be taxing for some people.

Betterment

Gone are the days when you had to stump up big bucks to open an individual retirement account (IRA). Today, Certified Financial Planners are recommending so-called robo-advisors, like Betterment, to their clients.

Here’s a quick synopsis of this incredibly popular investment service:

  • It offers a low-fee, diversified portfolio and automatically rebalances it (instead of allowing you to do so, which costs money)
  • You can also customize your account, including what percentage of your portfolio you want to allocate to international stocks and what percentage of your portfolio you want to concentrate on small caps and mid caps

The funds are automatically re-allocated, and you can easily re-allocate them yourself if you want to.

You can read more about robo-advisors over at Mashable.

Blooom

Is a Robo-Advisor for 401(k) Plans. It Could Save You Thousands.

If you can commit some money from each paycheck to a 401(k) plan, you’re doing better than most Americans. But even if you’re a devoted saver, you could probably use some professional help with your investments. You might end up paying a lot less than you think.

Wealthsimple

Review: Is It a Scam?

Are you looking to invest your money, but are worried about losing it all in the stock market? Are you looking for a way to automatically save the money you are saving for a different goal each month?

The following review will tell you about a better way you can make money and learn about investing. With Wealthsimple Review, you can have a financial advisor, but also have access to all of your money on your mobile banking app and a reasonable interest rate.

M1

I’ve been using M1 Finance Stash growth for a couple of years now. M1F is a robo-advisor that allows you to automatically invest money in a low amount of well diversified ETFs. M1F Stash growth is a feature they recently added that works really well for me. It has the ability to automatically increase the amount you invest each week or month. In today’s post, I’ll be going over the features, fees, and signup process of M1F Stash growth, as well as some pros and cons.

Pros: The ability to automatically invest in a low amount each month comes with practically 0% fees.

Cons: You’re pretty much trading the ability to invest during market volatility for 0% fees.

Fees: 0% Vanguard S&P 500 ETF VOO 0.04% Vanguard Emerging Markets ETF VWO 0.05% Vanguard FTSE Developed Markets VEA 0.05% Vanguard Bond ETF BND 0.04% iShares Core U.S. Aggregate Bond AGG 0.04% iShares iBoxx $ Investment Grade Corporate Bond LQD 0.05% iShares Short Treasury Bond SHV 0.04% Vanguard REIT ETF VNQ 0.07%

Hedgeable

Looking to start investing for your future? If so, you’re in the right place.

Rather than leaving you to your own devices, I thought I’d take a few minutes and provide some assorted pointers to help you out during the infancy of your investing career.

Let’s start with the basics.

Of course, I’d have to suggest the brokerage I work for.

If you aren’t keen on opening an account through another website or financial institution (and really, you shouldn’t be “ the world of online investing is too vast to be swayed by any single external situation or person), here are some tips and tricks to help you along the way:

Know what kind of investor you’re dealing with.

Not everyone is the same. Some might be looking for long-term returns and want to deal with steady, long-term investment. For others, staking it now (for a decade or so) and seeing a big return down the road might be what’s necessary to make them feel good about investing.

Amounts:

Low Minimum Investment Brokerages

Discovering the best online brokerage fit for your investment style and portfolio size can be quite a challenge to go through. Now that everyone is required to trade through a brokerage account, it’s becoming harder to find an online broker that does not require minimum balances or a minimum number of trades to reduce the account opening fees.

In recent years, a growing number of online brokers came up with a solution for this dilemma by implementing minimum investment requirements or minimum trading requirements to waive off the account-opening fee. The trick here is to find the lowest minimum investment required to open a brokerage account.

If you’re looking for an online brokerage account with low minimum investment requirements to avoid paying the trading or account-opening fees, you’ve come to the right place.

We hope this list helps you narrow down your favorite brokerage account and lists some potential low minimum investment brokerage.

These brokerage accounts have no minimum investment required to open brokerage account or waive off the account-opening fees. They do have minimum trading requirements to open an account. Minimum deposit and subsequent trading requirements vary based on segments of trading activity with differing minimum investment amounts.

Best Low Minimum Investment Brokerages

Achieving a fiverr account balance is just one step to getting started on the road to success an online business. Due to the economies of scale, it is cheaper for your new business to buy things in bulk initially. This is because the overhead costs for an online business are significantly lower compared to brick and mortar ones.

The first step you need to do is to open a demand deposit account. When you open an account, the bank will provide you with bookkeeping software. This software will help you track your expenses and profits.

Secondly, you should open about ten high-yield demand accounts. It’s important to open them in several different banks because banks tend to ask a lot of questions, especially if you’re new to online business. If you use one bank as a primary account, others may think that it’s being used to launder money.

The next thing you need to look into is tax preparation.

Once you have all these things in place, you can start ordering bulk inventory for your online business.

Unique Low Minimum Investment Brokerages

Retirement Plans

401(k)

Vs. a Traditional IRA

The one point of contention that arises when talking about these retirement accounts is the tax issue. In the case of a traditional IRA, you can take advantage of tax refund money for your contributions, but this money comes out of your paycheck and is paid in the form of either income tax or payroll tax. So, while you save on the taxes themselves, you are also foregoing a regular salary.

A traditional 401(k) and a Roth IRA are two different situations where you put money aside out of your paycheck with no tax liability. With the 401(k), you put money aside pre-tax, which gives you a regular salary. At retirement, you are taxed on these funds at your regular income-tax rate. With a Roth IRA, you put the money aside after you are taxed. If you are disciplined and strategic, this could be a big tax savings.

Another big consideration is where your money can grow. When you put money into a Roth IRA or a traditional 401(k), you can invest that money. Where you choose to invest it is up to you. So, you could put money into a mutual fund or in a simple savings account. This makes it more valuable to you and gives you more control, plus you get to choose what you want to do with it.

IRA

Start an Online Business

Starting an online business doesn’t have to be an overwhelming and expensive venture. One of the first things you want to do is sit down and write down all of the ideas that you’ve had throughout the years that have potential to become a business. You can do this in a notebook, on a napkin, or using an actual online business ideas pad. The point is to just start generating as many ideas as possible.

Of course, anything that you’re seriously considering should be written down somewhere … on your list or on a pad. Anything else you’re trying on for size and is just a fun idea, you don’t need to write down. Unless it seems like a strange coincidence worthy of making a list to pitch later, it’s probably a hype idea that’s not worth pursuing, so don’t waste your time writing it down.

Start a Blog

A website today is a must have.

All of your favorite brands have a website. And every business you can think of has a website, including plumbers, doctors, coaches, insurance agents and more.

It’s not difficult to start a website either. You can use many sources to build one for free, such as weebly. You’ll even have the option to use Google’s free website builder. And if super fancy web design isn’t important to you and you have the cash, you can always hire a professional web designer.

If you have the technical skills to build a website, there’s a great opportunity to earn additional income on the side.

Just like many plumbers earn extra income on the side with plumbing services, another source of income is designing websites. You could offer website building and SEO services or even create your own website design business.

Blogging is another option. You can use a blog to earn money through ad revenue, building an email list or using affiliate marketing to promote products on your site.

Don’t just start any blog, though. Remember, you’re going to be spending time on this, and you’re going to be investing your time and money.

Marketing and Monetizing Your Blog

The fundamental truth about being a blogger or an online entrepreneur is that no one will pay you for your hard work.

It’s not like you’re working in an office where you’ve got a paycheck and a lucrative exit strategy that allows you to retire at 34 and spend the rest of your days playing tennis.

Being an entrepreneur requires grit, determination, and a lot of sacrifice, but that’s what you signed up for when you decided to go into business for yourself.

So how do you make money as a blogger? The easiest and most common way to make money as a blogger is by using paid advertising services. There are a lot of companies that will pay you to promote their products in your blog.

But your other option is to build your own email list, market your articles, and create products to sell.

These are the only ways you’ll get people to pay you for the content you’ve created. That’s why it’s crucial to figure out how to market yourself and how to create awesome content.

Starting an Online Store

Thanks to the Internet, you can sell products to people from all over the world without spending a fortune. Ecommerce is an easy and cheap way to start a part time business and it works with just a simple website. If you are passionate about something, it might even be a good idea to start selling it.

Here’s a few things to consider before you start an online e-commerce store:

  • What are you going to sell?
  • How much do you know about this subject?
  • How are you going to reach your target audience?
  • Do you have any previous experience in e-commerce or in marketing (if you’re selling physical products)
  • Are you willing to spend some money on this?
  • Should you get some professional help?

I recommend that you start an online store selling products you’re passionate about.

For example, if you really enjoy gardening, why not create a gardening online store and sell tools that you can find on your own at a lower price?

A second important point is the product of the niche, also you should know what you are doing that is understood in the case of clothing and other products.

Buying Stuff and Flipping it for Profits

I recently had to buy some things from the shops, so I decided to try my luck by searching for a good deal online. I figured if I found something I like, I might as well buy it right away and see if I can make some money out of it later. Based on what I found, I decided to give it a shot and I ended up making a decent profit on eBay.

Now, I won’t be buying an island in the South Pacific, but it made me curious if I could do it again. So then I decided to invest a little more money for some bigger stuff. What I learned was that it’s not too difficult to flip stuff for profit on eBay, as long as you do your research and have a little patience.

In this article, I’m going to show you exactly what I did and how you can do it too.

Selling Your Merchandise

When you begin your first job, you are usually given a small allowance for any gear you may need to wear to work; work boots, rain boots, a stain-resistant apron, etc. If you’re lucky, your employer may give you a bonus or incentive. A lot of this money can be put toward your protective gear. Now you have an array of gloves, hats, and a rain suit that are all suitable for your profession.

Your next purchase will be a tool to make your work more efficient, more enjoyable, and more profitable. In the world of contracting, it is important for you to work with quality tools. Your purchasing decisions should always start with the need to obtain the right tool for the job.

Realizing that you need these items will bring you to purchasing decisions that will affect your current and future income. It’s important that you buy the right tool for the job instead of spending extra money on something you will quickly outgrow. Buying quality tools ahead of time can reduce replacement item resale cost. I will go more in-depth on the need to spend your money on quality tools in an upcoming blog post.

If You Have $500 Don’t Stop There!

You’re determined to start your investing adventure on a positive note?

Go ahead and put your money to good use but don’t stop there!

Studies have shown that most investors, who are new to investing tend to stop with their first investment and then trail behind the market by doing nothing.

That is because they usually do a lot of research on finding the right stock but not on how to own stocks.

Once you have made that first purchase, it gives you an opportunity to start your relationship with your first stock. It gives you the chance to familiarize yourself with the ownership process. Start looking into it and understand how you can buy and sell stocks by becoming a shareholder.

You need to understand that stocks are not something you buy and forget. These are your stocks and you need to understand how it works for them to make money.

In our earlier example, we picked Bank of America as our first stock, but today it’s no longer the only choice. Almost every company is an offer to all investors. For instance, Walmart, Microsoft and many more.

As you make more purchases, try diversifying your portfolio by purchasing stocks across different sectors and industries. This will help with reducing risk and increasing returns.