Four Smart Ways to Invest Tiny Sums
Think that you need a king's ransom to begin investing and make it grow even more? You're not alone.
If you're in your 20s and 30s, you're likely paying off school loans and probably can't fathom setting aside any extra cash on top of your expenses, but tucking away just a little bit can have a big payoff down the line.
"Many people think that it takes a lot of money to get started in investing and think small amounts aren't worth it," says Ginita Wall, a certified financial planner and author of "It's More Than Your Money, It's Your Life." "Remember that, over time, small amounts become big amounts."
Below, Wall offers ways to invest $500, $1,000, $2,500 and $5,000. Keep in mind that the advice is interchangeable, and you can use the suggested ways to invest for any of the dollar amounts.$500
Buy a bond. Go to your bank, and buy an I savings bond, which is currently paying an annual interest rate of 4.84%. The interest adjusts on a semi-annual basis, and you can hold on to the bond as long as you want, but to get the real benefit, you should think of this as a long-term investment. At the current interest rate, your $500 will have quadrupled to $2,000 in 30 years. You need a minimum of $50 to buy this bond, but can't invest more than $5,000 in a year. To learn more about I savings bonds, go to this Web site.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV