How Can I Invest a Small Amount of Money?

There are a lot of people out there who let their money sit in a low interest savings account because they think they just don’t have enough to get involved in investments. Banks count on that, which is one reason they get away with offering such criminally low interest rates.

However, you don’t actually need a huge sum to test the waters. Here are few ways to invest small amounts of cash and still possibly have them pay off handsomely for you:

Keep a Handle on Your Debt

This may not sound like investing, but it is making you money, so that is essentially the same thing. People would drop dead from shame and horror to learn how much money they waste in interest over the course of a lifetime due to outstanding debt. Don’t be one of them.

Loan to Friends

Have a friend in need? Well, be a friend indeed by loaning them some money. Offer a better interest rate than the banks. You can also take advantage of peer-to-peer lending services that handle all of the particulars for you.


Don’t feel confident about your ability to pick stocks? Some companies offer what are known as robo-advisors. These programs automatically select investment opportunities for you based on information users provide when signing up (e.g. the degree of risk you are comfortable with).

Invest in Your Children’s Education

By starting to put money away early for your child’s college funds, you can earn a great amount of interest over the years. Of course, if your kid goes on to have a great career, they will also likely pay you back in generous ways.


Even though you are not betting the farm, it is still not wise to put all of your eggs in one basket. Make a series of small investments, rather than putting everything into just one.