In today's world, investing isn't just for the wealthy. Anyone who has just a little bit of money can invest in some sort of market. The key to investing is to choose and do so wisely. Don't put your money in the first investment you come across. Be sure the investments you make are safe and secure. Here are some of the most common investments you can make with just a little bit of capital or with just a little bit of money. Which will you choose? The number one investment you can start with the smallest amount of capital is a savings account. Check out the bank you are currently a member of, as well as some of the other banks and credit unions in your area. Ask about the various savings accounts they offer. Which one will bring you the highest return? Some savings accounts require a minimum deposit to open them and also to keep them open each month. You'll want to find accounts that don't have monthly finance charges, as those will just take away from the amount of money you end up gaining. You can also add to this savings account on your own as well. Find ways to cut back on bills each month. Don't go out to eat a couple times a week and take the money you would have spent and deposit it into the savings account. Lower the number of cable channels you get each month, then take the difference between the two and put it into your account each month. Before you know it, you'll have more money than you realize. Come up with a goal for yourself. Do you want to have a certain amount of money before Christmas or your birthday? Or perhaps you want to keep the account until you have $100,000 to use toward the purchase of a house. Maybe you want to keep adding to the account and use it in the future for a child's college or your retirement. Just be sure to shop around for the best benefits on the accounts before your make your decision. If you have a minimum of $50 to invest, check out Direct Stock Purchase Plans or DSPs. These plans do not involve brokers or their fees, you deal directly with and purchase directly from the companies selling the stock. While not all companies offer DSP plans, more than 1,000 do, and you can find lists of them online. There are two ways to go about purchasing stock from these companies. You can purchase stock as you want, once then never again, or once in a while. The other way to purchase stocks is to set up periodic purchasing. If you choose to set up the latter, you must make sure you have the money available when you plan to have the stocks purchased. This is also a good way to increase your money without needing to worry about taking time out of a busy schedule to purchase more stock. Another investment to make with a small amount of capital is with mutual funds. It is possible to find mutual funds that have low minimum purchase requirements, usually as little as $25. A lot of times, these low purchase mutual funds will require investors to set up the automatic withdraw of money from your bank account with the intent of buying more stocks. These mutual funds may also require you to purchase an initial stock investment. This can usually be as little as $25 as well. If you have more money to invest, about $500, you can look into mutual index funds. This type of investment follows a market index like the S&P 500 (Standard & Poor's 500). These types of funds are shown to have a large market exposure, low operating costs, and a return of about 10% per year. After your initial investment, you can add money as you wish without any further charges. An IRA or an Individual Retirement Arrangement, available only in the US, is one type of this investment. It's possible to open an IRA with as little as $250 but other plans are available. Along the same lines as investing your money in a savings account, you have the option of a CD, or a certificate of deposit. The process with a CD is you loan the bank a certain amount of money for a certain amount of time. At the end of that set amount of time, the bank pays that money back plus the amount of interest you've incurred. The length of time a CD lasts is usually from a month to five years. During that time, the CD earns interest. Usually, the larger the CD you initially purchase, the more interest you'll get back. These are just five ways you can invest with just a small amount of money. There are more ways you can invest with a little bit more money. Your investment will get bigger the more money you put into it. The important part, no matter how much money you put into the investment, is make sure you use a reputable company and if you doubt any transactions, check with an attorney.
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