How To Invest 500 Dollars

The average person doesn’t think that they have enough money to begin investing, but you don’t need lots of money to start.

If you have $500 to spare, you can start investing yourself!

How To Invest 500 Dollars

$500 may not be a lot of money, but it’s certainly enough to start with. Investing can help you learn how to build wealth and become financially savvy.

It’s better to start investing earlier than later, as your money will have more time to grow.

Most people have no retirement savings, but investing can be a huge step to make sure you’re financially comfortable when you’re old.

You’ll learn some of the best ways to invest $500 in this article, including 401k’s, savings bonds, and side hustles.

Keep reading to find out some simple ways of investing $500!

Different Ways To Invest $500

Let’s take a look at the different ways that you can invest your $500! Keep reading to find a method that will suit you.

401k Or An IRA

If you can pay towards your employer-sponsored retirement plan, $500 can help you reach the yearly contribution limits.

This may be a 401k or a 403b. You can contact human resources to find out how you can deposit a single sum of $500 to your account.

Some companies may provide a company match. This means they’ll match a certain amount of salary that you invest into your retirement plan.

For instance, an employer may offer to match 3% of your salary. If you make $500 every week, your employer would match $15 each week, turning 3% into 6%.

If your employer offers a company match, try to make the most out of it to receive the benefits.

You can also invest $500 by starting and paying into a standard Individual Retirement Account, also known as an IRA.

IRAs are one of the best ways to save for retirement. Depending on the account you sign up for, you may be able to invest money on a tax-free basis.

Purchase A Certificate Of Deposit

If you need a safe place to store your savings or emergency fund, you may want to buy a certificate of deposit. This is one of the safest ways of investing $500.

Certificates of deposits let you receive a guaranteed return on your investment.

The interest you receive will be paid regarding the deposit agreement you sign up for, no matter how the economy is faring.

Your return will be guaranteed and your money will be insured by the Federal Deposit Insurance Corporation.

However, you need to know that certificate of deposit interest rates aren’t that much higher than the rates on savings accounts.

Nevertheless, if you’re storing emergency fund money or short-term savings, a certificate of deposit will ensure you can access the money easily, without the complications of investments.

Certificates of deposits will prevent your money from being affected by economic crashes or being bound by other investments.

Start A Side Hustle

This is a great idea if you’re thinking about earning some more money. You can invest $500 by starting a side hustle.

How To Invest 500 Dollars

This money can help you buy supplies, set up a website, or learn additional skills.

One side hustle idea is purchasing popular products to resell at a profit. You can browse websites and yard sales to find electrical appliances, furniture, and clothing.

Some of these places include eBay, Facebook Marketplace, and thrift stores.

Once you find some good quality pieces, you can sell them for a higher price through other websites.

Investing $500 into your side hustle can be the first step to earning through multiple income streams.

If you end up enjoying the process, this may turn into a full-time job later!

Savings Bonds

Savings bonds are a good way to invest $500, but they do come with some risk.

Savings bonds aren’t as risky as stocks, but they don’t earn as much money.

Despite this, it’s a good idea to branch out when investing. Savings bonds can be a nice place for beginners to start.

Savings bonds were created by the United States government to support federal initiatives.

Bonds are viewed as low-risk and have the support of the American Government’s Full Faith and Credit. This is one of the safest investing methods.

The investor begins by purchasing a bond at its apparent worth. Once the bond is redeemed, they obtain the original amount along with its interest.

Start A Dividend Reinvestment Plan

You can set up a dividend reinvestment plan once you start purchasing dividend-paying stocks.

This lets you reinvest the dividends you earn and purchase more stock later.

Over time, your money will have the chance to grow as a result of the reinvestments.

Pay Off High-Interest Debt

It’s always a good idea to pay off any debt you have, whether it’s student loans, car payments, or credit cards.

$500 may seem like a small amount, but it can help you a lot when paying off debt.

If you leave your debt to collect, you’ll pay interest over many years. This can add up to hundreds or even thousands of dollars!

Paying off as much debt as you can now will help you save a lot of money in interest.

Invest With A Robo Advisor

Robo advisors are automated investing facilities that look after your investments.

They use technology that looks at your information and finances to work out how much you should invest.

Lots of financial establishments provide investing methods through Robo-advisors. These can help you start investing without paying expensive sums.

You can even find financial services that will instinctively invest your spare change for you.

Using a Robo-advisor can be a simple, yet effective way of investing your money, and it will do all of the work for you!


500 dollars may not seem like a large amount of money, but it can help you learn how to invest.

There are many ways to start investing for your future, including retirement accounts, Robo-advisors, and savings bonds.

Remember, all investing methods come with some risk.

Before you set aside $500, you need to make sure that all your bills are paid and that you have enough savings to cover you for a few months.

Investment is a long-term process, but as long as you understand that, $500 is all you need to get started investing!

Colin Faser
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