Investing doesn’t have to be intimidating, and it certainly doesn’t require thousands of dollars to get started. Even with less than $500, you can take meaningful steps toward growing your wealth. Small investments, made consistently over time, can lead to significant financial growth thanks to compounding and smart asset choices. If you’re ready to put your money to work, here are 10 assets that you can invest in with a modest budget of $500 or less.
1. Stocks
Stocks allow you to buy a small slice of a company and share in its growth and profits. For less than $500, you can purchase shares of companies with smaller share prices or invest in fractional shares of more expensive companies.
Why It’s a Good Investment:
Stocks have the potential for long-term growth and can outpace inflation. While they carry more risk, they’re a key part of building wealth over time.
How to Get Started:
Sign up for an online brokerage like Robinhood, E*TRADE, or TD Ameritrade. Many brokerages don’t charge commission fees and allow you to invest in individual stocks for as little as $1.
2. Exchange-Traded Funds (ETFs)
ETFs are baskets of assets, like stocks or bonds, that trade on an exchange like individual stocks. They provide instant diversification, lowering the risk of individual investments.
Why It’s a Good Investment:
ETFs are affordable, accessible, and spread your money across multiple investments, reducing risk. Many have low expense ratios, keeping costs down.
How to Get Started:
Search for ETFs that align with your financial goals, such as S&P 500 ETFs for broad market exposure. You can buy ETFs through most brokerages for the same price as a share—often under $100.
3. Fractional Shares
Fractional shares allow you to buy a small portion of a stock rather than committing to a full share. This is ideal for blue-chip companies like Amazon or Tesla, where a single share might exceed $1,000.
Why It’s a Good Investment:
Fractional shares make high-quality, expensive stocks accessible to all investors. You can diversify across several big-name companies with minimal capital.
How to Get Started:
Platforms like Fidelity, M1 Finance, and Public specialize in fractional share investments. You can begin with as little as $1 per company.
4. Real Estate Investment Trusts (REITs)
REITs are companies that own income-generating real estate, such as apartments, office buildings, or shopping centers. They allow you to invest in real estate without the need for large amounts of capital or property management.
Why It’s a Good Investment:
REITs often provide regular dividend payouts and have historically performed well over time. They’re a great way to add real estate exposure to your portfolio.
How to Get Started:
You can invest in publicly traded REITs through the stock market, either individually or via ETFs. Alternatively, consider apps like Fundrise, which offer private REITs starting at $10.
5. High-Yield Savings Accounts
If you’re looking for a low-risk option, high-yield savings accounts (HYSAs) offer a safe place to store cash while earning interest. While not traditional “investments,” they help grow your money without any market risk.
Why It’s a Good Investment:
HYSAs typically offer higher interest rates than standard savings accounts, making them ideal for emergency funds or short-term savings.
How to Get Started:
Online banks like Marcus by Goldman Sachs and Ally Bank often have competitive HYSA rates with no minimum deposit requirements.
6. Robo-Advisors
Robo-advisors are automated investment platforms that manage your money using algorithms. They invest your funds in a diversified portfolio tailored to your financial goals and risk tolerance.
Why It’s a Good Investment:
Robo-advisors take the guesswork out of investing and are ideal for beginners who want professional management without high fees.
How to Get Started:
Services like Betterment or Wealthfront allow you to start investing with as little as $100.
7. Index Funds
Index funds track specific market indices, like the S&P 500, and allow you to invest in a wide range of companies with a single purchase.
Why It’s a Good Investment:
They’re cost-efficient, diversified, and have low expense ratios. Index funds tend to perform well over time, making them great for long-term growth.
How to Get Started:
You can buy index funds through brokerages like Vanguard or Charles Schwab. Many index funds have low minimum investments, some starting below $500.
8. Certificates of Deposit (CDs)
CDs are low-risk time-deposit accounts where you agree to leave your money untouched for a set period in exchange for a fixed interest rate.
Why It’s a Good Investment:
CDs provide a guaranteed return, making them ideal for conservative investors. They’re perfect for saving toward a short-term goal.
How to Get Started:
Check rates at your local bank or online financial institutions like Synchrony Bank—they often have CDs accessible for $500 or less.
9. Peer-to-Peer Lending
Peer-to-peer (P2P) lending allows you to lend money to individuals or small businesses in exchange for interest. You act as the lender, and platforms handle loan administration.
Why It’s a Good Investment:
P2P lending offers higher returns than traditional savings accounts and gives you the chance to support other individuals.
How to Get Started:
Platforms like LendingClub and Prosper allow you to start investing in loans with minimum amounts as low as $25 per loan.
10. Cryptocurrency
Cryptocurrency is a digital currency that uses blockchain technology. Popular options like Bitcoin, Ethereum, and Solana have been gaining traction as alternative investments.
Why It’s a Good Investment:
Cryptos have the potential for high returns, though they come with significant risk. They can diversify your portfolio when used in moderation.
How to Get Started:
Platforms like Coinbase, Binance, and Kraken make it easy to purchase crypto with small amounts—starting at just $10.
Start Small, Think Big
Investing with less than $500 might seem like a modest start, but it’s an important step toward building your financial future. Success in investing often comes down to consistency, discipline, and patience rather than the amount you start with. Choose one or two options that align with your goals, start investing regularly, and watch your wealth grow over time.
