The Best Investment You Can Make for Under $50
Investing your money in ways that will allow it to grow over time is critical to becoming financially secure. There’s a widespread perception, though, that investing is for wealthy people with lots of extra income. While this was somewhat true at one time, the modern age has opened up investing to practically everyone, regardless of income level. Here are some of the best investments that you can get started with for $50 or less to take your first step toward financial security later in life.
Investing in Index Funds Through Robo-Advisors
Index funds are among the best investments for people who don’t have much extra money and who may not be comfortable with high levels of financial risk. Index funds, simply put, are funds that track the composition of various indices, such as the S&P 500 or the Dow Jones Industrial Average. Index funds are excellent for beginning investors because they require no active management and have very low fees.
In the last few years, several so-called robo-advisors have cropped up that allow people to invest in various index funds with very small amounts of money. Several, including Betterment and Wealthsimple, allow users to open accounts with no minimum balance. If you only have $50 to invest, opening an account with one of these robo-advisors is a good place to start.
People think of precious metal investing as something that requires massive amounts of money, but the truth is that starting to invest in physical silver is not a high-cost proposition. At the moment, silver prices tend to fluctuate between $16 and $18, meaning that you can acquire roughly 3 ounces of silver at the $50 price point. Physical silver is widely regarded as a good hedge against inflation, which is why so many investors end up turning to it and other precious metals during times of economic uncertainty.
Just as robo-advisors opened up index funds to the average person, other innovative financial companies have made it possible for people to invest in stocks with very low sums of money. This is achieved through a mechanism known as fractional stock shares. As the name implies, fractional shares represent a certain percentage of a share of stock. By pooling together money from many investors, the companies that let users access fractional shares can purchase full shares of the stocks, then apportion their value according to the fraction of a share each purchaser invested in.
There are several fractional stock investment companies on the market today that will let users invest for $50 or less. Stockpile, one of the leading companies offering fractional shares, has no account minimum. If you want to try your hand at stock investing without risking too much of your hard-earned money, fractional investing is an excellent way for you to get started.
Though a very non-traditional form of investment, building equity in websites and web domains has gained popularity among alternative investors in recent years. Web domains can be purchased for between $15 and $20 per year. If you have the basic skills necessary to build even a simple website on that domain, you can then turn around and sell the website for a profit. This method does involve some risk, but the good news is that it’s fairly inexpensive, meaning that you don’t stand to lose very much money if you don’t succeed with it.
Buying a web domain and building a website on it can also generate revenue in a different way. If the site you build is relatively good and has content on it that will draw in visitors, you can actually generate a stream of revenue from it by hosting pay-per-click ads and promoting affiliate products. These methods will produce small but reliable streams of monthly income which you can build up over time. Investing in websites certainly isn’t for everyone, but for those investors who can make it work, the profits from selling or the monthly revenue from holding a website can produce a substantial return on the initial investment.
These are only a handful of the many investments you can make if you only have $50 to spare. Don’t let only having a small amount of investment capital stop you from letting your money grow in the market. Start with what you have, and you can build up your investments from there over time.