Thinking for investing $500? All the good things often come in small packages whether it is your favorite cupcake, your nap time, or the start of your future planning.
When we talk about investment, just the term will make you back off because for you it is a rich man’s game. However, no one limited you from trying. You, my friend, need a kick to get going even with an amount as little as $500.
Your degree, general knowledge, and scientific interests won’t help you get all the riches of the world unless you belong to the royal family or have Aladdin’s genie.
You might have learned a lot of skills all your life, but do you recall being taught about smart investments and financial management?
We do not mean to demean or denounce all that you have read and learnt, but its never too late to learn something new because of the knowledge of this world is unlimited.
Your degree decides your career and not your future. You are the one that can plan ahead for a better life, for which personal financing, budgeting, and investing are some important things you should know about.
Saving $500 in a year is not a big thing. Making them double or triple in weeks is. The amount that you have just deposited in your savings account won’t increase just by lying there. You need to learn how you can actually invest your small amount to get rid of the 9 to 5 life.
How to invest 500 Dollars Wisely – Proven Hacks 2020
The best thing that you can do for investing 500 dollars wisely is to plan for it. Look for all the pros and cons. Search for various platforms that provide you with the right advice.
The tried and tested steps to make smart investments have helped many investors to become millionaires, and they still follow them.
The major steps that you need to follow are:
- Managing to save enough every month that you can get $500 by the end or at least after two to three months for low income.
- Make ways to increase your income. Look out for a part-time job or source of passive income to give a boost to your current salary.
- Make a 35-year investment plan. It means that you will have to stay consistent to invest every month for the coming 35 years of your life.
This life-changing investment plan is designed and approved by some of the world-class millionaires who have turned the tables by starting with small investments. Once, you understand how to follow this plan, you find it easier to continue with your future plans.
$500 Investment Plan for You
Above, we have mentioned just the steps.
Now, let us provide you with detailed information about all the steps. Not only that, but you will also get the answers that might concern your thoughts after knowing about all the intricacies of small investments.
1. Save by Budgeting
Spending money is very easy, but when it comes to saving them; well that’s an issue! No man has the natural capability to stop his hands from picking up all the non-essential things in a store.
However, stopping your hands for going in your pocket whenever you see the new Nike shoes or the Mac waterproof liner is something you learn by going broke many a time.
When things get serious, turn to budget because it is the cornerstone of your finance management. Automate your savings by investing smartly (lets say $500) at platforms that won’t only take from you, but give back as well.
Making small investments is the only way to save for your long term goals. All you need to find is a credible source and platform that allows you to make more money from your money.
Moreover, you can also adopt many effective plans that can even make you save up to $5000 in just 26 weeks. Amazing; isn’t it?
Acorns is a micro saving application that allows you to invest your spare change and earn from it. It is a Robo-advisor platform that keeps an eye on your spending habits and transactions that you make through the credit card or bank account linked with the app.
Let’s see how this app will work for a non-saver like you. If you buy a new pair of shoes for $7.37, the Acorns app will charge your credit or debit card with $8. The spare change of 63 cents will be held for savings.
As soon as the held up amount will reach $5, it will be transferred to your Acorns investment savings account. If you continue making worthy purchases like this, you can earn from $50 to $100 per month.
2. Increase your income to save more
The more you are able to maximize your current income, the more are your chances to save. Most of the people are unable to save because the immediate expenses cannot be cut down low. If such is the case with you as well, you can start looking for ways to earn more.
It doesn’t mean that you start hunting for part-time jobs or increase your working hours from 8 to 12. It will only make your life worse. Start easy earning by searching for online earning platforms.
We have shortlisted some of the best websites for you. Let’s have a look:
A: InboxDollars (www.inboxdollars.com)
With InboxDollars, you can easily earn up to $30 every month simply by taking surveys. It is one of the highest paying survey websites with a variety of other fun options to earn from.
Making money with InboxDollars is easy. You just have to sign up for which you’ll get a $5 bonus. It means you have to start earning as soon as you enter the game.
Taking 4 to 5 surveys every month can easily add to your current income. A tip to earn more is to wait until your account has $40 in it. If you transact on a $30, you’ll get $27 after deduction of $3. Play smart and earn fast.
B: Survey Junkie (www.surveyjunkie.com)
Building up your profile at Survey Junkie will make it easier for you to take part in only those surveys related to your interest. Survey Junkie surveys are easy, short, and relevant. You can earn from $0.25 to $3.50 for completing every survey depending on the length.
Most of the surveys are related to the goods and products you use in daily life. They are basically feedbacks to help improve the quality of certain products or to introduce new ones in the market.
C: ibotta (home.ibotta.com)
This one is another reliable and legit money making apps that lets you earn cash back on every dollar you spend on buying from your favorite retail stores.
Whether you shop online or in person. What can be better than signing up for an app ad getting a direct $20 bonus as a welcome gift? It is actually a rebate app that demands snaps of your recent receipt to get up to 10% cash back.
D: Rakuten (www.rakuten.com)
This application and website as formerly known as Ebates. Online shopping has become more convenient and profitable for customers with the Rakuten app. Refer this app to your friends and family, and earn $25 as a reward.
On your first purchase through Rakuten, you’ll get a $10 gift card. You can shop at over 2500 stores such as Target, Kohl’s, Walmart, and Amazon available on this site.
3. Invest in Something
The best way to earn more money while saving is to invest. In the initial stages, it is not a hard and fast rule to invest all your savings. You can start with small amounts so that you won’t regret if you face a casual loss.
Investments are all about taking risks, so if you are on to it, then the game is yours to play. All you need to know is where to invest, and we are here to resolve that matter for you. Turn the tables by investing in the following investment platforms and get ready to earn more.
A: Blue Chip Stocks
To begin with, you must know what Blue Chip stocks really are. These stocks are of the companies that are well-traded off and have proper management systems. Some examples are Microsoft, Coca-cola, and Google.
The capitalization rate of these companies makes investing safer and more credible. In this volatile stock industry, Blue Chip stocks are low at risk because you are putting your money in a historically trusted company.
To invest in Blue Chip stocks, find yourself a broker and he will help you with the Blue chip stocks that you should add to your investment portfolio.
B: Investment-grade bond
Make sure that the investment you are making is rated as an investment-grade bond. If you don’t know much about what a grade bond is; let us clarify it for you.
Investment graded bonds are considered safe from any credit loss because they are usually rated by BBB or BAA, or BCC. The BAA signifies the bond being at a higher service while BBB indicates the grade to be modest to poor. BCC ratings are termed as speculative bonds.
C: Mutual Funds
First thing is first. You must be eager to know about what mutual funds are and how you can invest smartly in it. Mutual funds are open-ended investment funds collected from many investors.
These funds may be in the form of securities like stocks, bonds, money market instruments, and other assets. If you are planning to buy a mutual fund, and then make sure you follow all the important steps:
- Make sure you go for investing passively because it gets cheaper with a low-interest fee when you have a small investment amount.
- Double-check your budget. Whether you are investing $50 or $500, it shouldn’t affect your current savings and monthly budgeting.
- Select your brokerage wisely. It is important to know where you can buy affordable and budget-friendly mutual funds with a low fee.
- Understand the interest fee structure on your mutual fund by getting in-depth information.
- Your investment portfolio should be well-managed because it shows at the forefront when you are up for a profit.
The exchange-traded fund (ETF) is similar to mutual funds. These funds are a collection of securities such as stocks. However, the only thing that differentiates ETF from mutual funds is their reliability.
Because these funds can be bought in a collection of stocks from different companies, you don’t need to worry if a single stock value lowers down. Following are the types of ETF:
All you need to do is create and maintain a brokerage account to buy or sell ETFs, focus on the fee structure, create a diverse portfolio, and keep adding to your ETF holdings.
E: Real estate Investment
The real estate business is the most profitable and popular investment platform if you know how to do it right. You don’t have to back-off if you have a little amount of 500 dollars.
It is an amazing way of generating passive income because once you are in the game, you just keep earning. Once you own a property with a monthly investment, you can list the property to rent.
The tenants will pay you monthly rent. So, you won’t be doing anything but counting the money.
Long Term investment of 35 years
This is important because the major reason for investing is generating enough income to add to your savings. Investment is a great plan for your life after retirement because the major target of this saving source is long-term benefits.
When you start investing, make sure you have a goal of consistency for the next 35 years. This might seem a little too daunting to digest, but this will only profit you in the end. Spare the same amount of your first investment every month for the next 35 years, and you will have enough money to live the life others dream of.
$500 may be a small and worthless investment for you in the beginning, but if you continue it for 35 years, your investor’s portfolio will be worth $1,041,293.49. If you put this amount in your savings account with a 0.05 interest rate, it will be $212,303.68.
You can’t even think of making this much money in the next 50 years with your 9 to 5 job and that is a fact.
Important Questions to address (FAQ)
The following are some important questions that most people ask themselves before they step into the investment market. Here, you will find the answers you were looking for.
Am I too late to start?
Answer: It is never too late to start off with anything. Most of you will think that investing too early or too late is not of any use. By early and late, we are referring to your age.
It doesn’t matter if you are 16 or 60, investing helps to save for the future. You have to build a mindset that it is not only for your comfort but for the betterment of your family as well.
What is the right time to start investing?
Answer: Every time is the right time if you are determined enough. If you start investing at an early age, you’ll have time to enjoy even after 35 years of investing. People think that 35 years are a lot and that they might be dead by then.
Think of your family even if you are dead, they‘ll have the life you plan to give them. Isn’t that satisfying enough to keep you in your grave? Luck can be by your side and you can stay alive till the age of 90.
Imagine how great it will be to enjoy all the luxuries in the last years of your life.
Will this plan make you rich?
Answer: Impossible itself says that “I m possible”. So, don’t let this chance slip out of your hands just because you didn’t try. We have seen teenagers turned into rich investors just with 10 to 17 years if consistency.
Imagine what they would do when they’ll be achieving their 35 years goal. When they can do it, then why can’t you? All you have to do is give it a try and jump in the market. Invest wisely and earn nicely!
This article carries all the information and addresses all the concerns that you might have as a beginner to invest 500 dollars. Managing your financing and money-saving tips aren’t something you’ll be taught as a subject.
It is actually a skill that you learn with time and proper management. The earning and investing platforms that we have described above are all credible, trusted and proven to provide what you are looking for. Remember, investing is not just for billionaires.
You have an equal opportunity and leverage to try your luck in this industry. With this investing strategy detailed above, you’ll never fail.