Hi Taylor – I don’t know much about investing other than it’s something I’m supposed to do. I don’t have much in savings, but I’m wondering if investing $500 is worth it and if you have advice on where to invest. – Brittney
Hey Brittney – The first investments are the hardest to make. It really might be worth putting your $500 somewhere it can grow, and there are lots of good options. Our goal is to find the one that works best for you and makes you excited about saving/investing in the future.
–1. Retirement. Retirement might be a good place to start. If you don’t already have something like an IRA or a 401(k), it could be worth looking into. Personally, I lean toward IRAs, but the real win is just getting started with any type of retirement account that offers tax benefits. Even if you’re only able to put in $500 now and won’t be able to add more for a while, that small step could still add up over time. You don’t have to wait until you’re “rich” to start saving for retirement. A lot of people find that building wealth starts with one simple deposit.
–2. Make some micro-investments. For people just starting out, apps like Acorns, Stash, or Betterment offer an easy way to invest small amounts. Use your $500 to open an account, choose your risk level, and let the platform automatically create a diversified portfolio. These apps have useful features that take the guesswork out of novice investing. You don’t have the stress of guessing the right stocks to buy, but you still make some money and start learning about how the markets work.
–3. It can sound a little corny, but investing in yourself is just as smart as investing in stocks. If the goal is to become wealthier, you might put your $500 toward an online course or launching a side hustle. This option is much scarier because it puts the pressure on you to turn your investment around, but buying stock in yourself is one of the most motivating things a person can do. Think of this as an investment that pays off not just in dollars, but in confidence, opportunities, and growth. If there’s a skill you want to learn or a business you want to start, now might be the time.
I’m sure $500 feels like a lot of money, and you want to make sure you do the right thing. In my opinion, you’re already doing the right thing by thinking about investing instead of spending. Now you get to decide what kind of future you’re working toward and what that investment looks like. Good luck!
Taylor Kovar, CFP®
CHIEF EXECUTIVE OFFICER
