13 Great Ways to Invest Small Amounts of Money

Investing is wise. But in most cases, a lot of money is needed and this locks some people out. If you are one of those people, you’ll be happy to know that investment does not always require lot of money. It is possible to start small and move up from there. Here are some of your options if you do not have much money.

High-Yield Savings Account

Money in your savings account earns interest. However, most conventional banks pay a very low interest. Online banks, on the other hand, give high-yield savings accounts.

Commission-Free ETFs and Funds

Securities are hard to invest in because brokerage companies require you to pay a fee to sell and buy the stocks. Given the amount they charge, it is only cost-effective for people who trade a lot of shares at once.

Companies such as Charles Schwab and Fidelity now have a list of securities that can be traded without a commission.

Low Cost ETFs and Mutual Funds

Apart from commission-free securities, there are those whose expense ratios are low. One low-cost option is the index fund.

401K Plan

Employer-sponsored retirement plans like 403b and 401K allow you to direct a portion of your income to another account and use it to…