Four Smart Ways to Invest Tiny Sums
Buy into your company's stock purchase plan.
Many public companies offer employees the opportunity to buy its stock at a reduced price.
Generally, your employer takes money out of your paycheck every month on an after tax basis and, every six months, uses what's accumulated to buy you stock at a discount (usually around 15%). In six months, your $1,000 will buy you $1,200 worth of stock so you've already made money.
Over time, your investment will increase as your company's stock grows. A stock purchase plan is still a savvy investment if you can only set aside $600. Setting aside this $100 a month will get you $700 worth of stock in six months.$2,500
Buy a CD. Visit BankingMyWay to see which banks in the country are offering the best rates for CDs. Right now, a return of 3.5% to 4% is the highest rate you can expect to get for CDs ranging from three to five years. "It seems like a small gain, but if you put your money into the stock market, it might drop, and if you leave it in your bank account, it won't grow at all," Wall says. She suggests opening a CD if you have an anticipated expense coming up in a few months or years, such as buying a car or going back to school. $5,000
Put it into a quality stock mutual fund. Mutual funds invest in a diversified portfolio of stocks, and by putting $5,000 into a high-performing fund, you can expect a significant return on your investment.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV