Having $300 to invest is a big decision and accomplishment.
I remember the feeling of putting money into my investment account for the first time and the mixed feelings of excitement and confusion of where to invest.
The good news is that learning how to invest 300 dollars is much easier than it was even five years ago. Keep reading as we explore several investment options and then look at how to make sure you don’t lose money over time.
Ways to Invest $300
Betterment works like a financial advisor but uses computer technology to do the investing instead of a human being. The amount of risk the platform takes is determined by a few questions that you answer when you sign up.
The investments themselves are in exchange traded funds, so you can be sure that your money is getting diversified among thousands of different stocks. If you do not feel ready to make your own investment decisions, then Betterment is the best hands-off option.
Public is a brokerage that makes investing available to any level of investor. It is an app-based brokerage so that you can do all your trading from your phone.
What sets them apart from other brokerages is that all your stock and ETF trades are free, and they allow you to purchase fractional shares of stock. Fractional shares mean that you can buy a specific dollar amount of stock instead of purchasing a full share at whatever the market price is that day.
Public is an excellent option for anyone looking to get started trading stocks and ETFs.
Worthy Bonds give you the ability to invest in loans to small businesses. These loans, called bonds, are secured by property of the business taking the loan, making them a safe investment.
You can invest in Worthy Bonds in $10 increments, and in return, you get paid 5% in interest. You can withdraw your money at any time, giving you the flexibility of a savings account with a much higher interest rate.
While $300 is a great step in your investing, it doesn’t open up all the options that are available in the investment world. One option is to place your money in savings until you have $500 or more to get started.
The safest place to hold your money is in a savings account. Instead of going down to your local bank, consider one of the following online savings accounts that can give you much better interest.
Debt can be a killer for your financial plan. Unlike investments that pay you interest, you have to pay interest to you the lender.
If you have any high-interest debt, then taking your $300 and paying off that debt could be the best use of that money for your long term financial health.
Giving to charity may not feel like an investment, but once you start giving the investment side of it becomes clear.
When we give money away to organizations and causes, we believe in it changes our perspective on money. Money is a tool, and if we use that tool for good, good things tend to happen in ways we never expect.
Investing some money in your car can pay off big as your vehicle gets older. Whether you decide to take it in for a tune-up or do a little self-maintenance, investing in your vehicle can help it last longer and save you money on costly repairs.
Getting a good side business off the ground can take some seed money. If you have an idea for a business that you have wanted to try, then your investment of $300 can turn into a very nice side income.
And you never know, maybe that business takes off and turns into your full-time work.
Investing in yourself always pays off in the long run. Your education could be something traditional like taking a class from a local community college or less, so like purchasing an online course that helps you develop a new skill for your work.
If you have kids, you could put the money in a college savings account for their college. No matter what you choose, finding ways to invest in education makes you or your kids more marketable in the workforce.
Cryptocurrency has been a hot topic in the investing world. While there are tons of questions that still have to be answered on where the industry is going, the fact remains that it appears here to stay.
I am by no means a crypto expert, but I have started investing small amounts into crypto to make sure I have some exposure to the market and because I want to continue to learn how this technology is going to affect our lives.
I have been using Coinbase to buy cryptocurrencies because they are based in the United States, and there is some oversight of the company. Other exchanges are based in countries that I don’t trust with my money.
How I Would Invest $300
Now that you have some options, which one do you choose? I always think it is interesting when people give examples of how they would do something, so here is how I would invest 300 dollars.
For any money that my wife and I earn, we give 10% to our church. We believe in strongly in the principle of giving, and this $30 investment means that a lot of charitable work gets done in our local community.
Worthy Bonds ($50)
If you do not feel comfortable with Worthy Bonds, you could choose to invest $50 into a savings account instead. The purpose of this money is to have it available should an investment opportunity present itself.
I chose Worthy here because the 5% interest rate is so much better than what I could get with a savings account.
When I first got started investing, I chose to go with mutual funds because they would diversify my investments without me having to research each stock.
Today, you can do that much easier with Betterment. In my Betterment review, I detail how the robo-advisor works and why it is an excellent place to start investing. Investing $200, the bulk of my money, in Betterment makes for a great long-term plan.
Cryptocurrency is a fascinating technology, and one way to make sure I learn how it works is to make regular small investments in it. While investing $10 is not a lot, it forces me to do the research I would not do without making this commitment.
My Wife ($10)
My relationship with my wife is one of my most valuable assets. She makes my life better and is one of the few people I have ever met that I can spend unlimited time with and not get tired of them.
Investing a little money to make her day better is one of the best ways to keep my marriage healthy and happy. Always remember the wise words, “Marriage is grand. Divorce is 100 grand.”
Final Thoughts on How to Invest $300
No matter how you choose to invest $300, three principles will make sure you grow your investments.
The first is to get started. Having money sitting on the sidelines is a sure-fire way to make sure it continues to be the same amount you have now.
The second is to keep investing. The way to grow wealth is to invest over a long period consistently. Investment gurus call this dollar-cost averaging. No matter whether the market is up or the market is down, keep investing.
Finally, invest in platforms and products you understand. If you don’t quite grasp ETFs right now, then don’t invest in them until you learn how they work. Whatever you invest in, make sure you understand your investments.
Now conquer your investing fears and start growing your wealth!