Having $600 to invest is a great opportunity.
There are now more ways to invest our money than ever before. The problem is deciding where to invest that money.
Use these options for investing your 600 dollars to help you make the best decision for your financial future.
Ways to Invest $600
Betterment allows you to invest and diversify your investments without having to know anything about investing. As a robo-advisor, Betterment has you take a short survey (less than 5 minutes) when you sign up.
They use this survey to assess your risk tolerance and, once you fund your account, handle all the investments for you. The service even rebalances your portfolio and helps you avoid taxes. Learn more in our Betterment review.
Fundrise is to real estate, investing what Betterment is for stock investing. Instead of purchasing and renting out or selling real estate on your own, they make all the real estate investments for you.
You can fund an account with Fundrise with as little as $500 and choose the type of real estate investment trust you want. After that, Fundrise takes care of the rest.
Savings accounts are a great place to store money while you are figuring out where to invest. However, you do not want to put your money in any savings account. It would be best if you look for an account that offers high interest.
Whether you are figuring out where to put your $600 investment or stashing your emergency fund, these are the top rates you can find for online savings accounts.
These partial shares mean that instead of having to buy an entire share of stock, an investor can buy a specific dollar amount of a single stock.
For example, right now, Disney stock is over $100 a share. In the past, you would have to buy an entire share to own Disney stock, but with Public, you can purchase $10 of Disney if you want.
Public.com allows you to easily invest in stocks and ETFs. Our Public.com review details how the app works and all the options available for investors.
Worthy enables its investors to purchase portions of small business bonds. These bonds are a form of loan that small businesses need to meet needs in their operations and are secured with physical company assets.
The security of the loans makes worthy one of the safest investments on this list. If a borrower were to default on the loan, Worthy could seize the asset, sell it, and return the investor’s money.
For your investment you get 5% interest. In our Worthy Bonds review we explain how worthy is able to offer this great interest rate. If you are looking for a safe place to get decent returns, Worthy is a top option.
Giving to charity should be a part of any successful financial plan.
I know this does not feel like an investment, but giving to charitable organizations that align with your values will help you be more aware of where your other money is going and appreciate what you have.
Pay Off Debt
Paying off debt is another area that does not feel like you are investing $600, but when we do the math, it makes sense.
Instead of investing your money and getting between 1% to 12% on your investments, you can pay off high-interest debt and save the interest you would have paid.
If you can pay off a credit card that has 20% interest or worse, it is well worth using your 600 dollars to get that out of your life.
No matter what career you are in or are considering, we all need to continue to educate ourselves on what is new.
Many online courses and materials can help you take your current career to the next level or find a new one.
You are not going to pay for a lot of college with only $600 to invest, but you can get started with a 529 plan that will gain interest as you save.
These college savings plans grow tax-free like a Roth IRA, and you do not pay any taxes as long as you use the money for college tuition and expenses. If you have children, this is a great way to save for their education.
Cryptocurrency is here to stay and has presented an investment opportunity for those willing to learn how it works and the best coins to purchase.
If you are looking to get started, Coinbase is the easiest exchange for investing and is based in the United States.
How I Would Invest $600
Learning how to invest money takes time and a willingness to look at what others are doing. That is why I like to include a scenario of how I would invest if I had a specific amount of money to invest.
With that in mind, here is how I would invest $600:
My family is dedicated to investing in our local church and in organizations that align with our values.
For every dollar we earn, we give 10% to our local church. We also donate to other charities or individuals doing charity work. $60 is the minimum we would give in this situation.
Investing without having to manage any of the investing is very appealing. Betterment will take my $300 investment and allow me to sit back and watch it grow.
Worthy Bonds ($50)
Having money ready to go when an opportunity arises is an important part of investing. While having $50 to invest isn’t a large sum, but it makes being ready for an opportunity a priority.
I am learning more and more about picking my own stocks and ETFs. Having free trades and fractional shares with Public.com will allow me to continue learning about picking my investments while avoiding unnecessary fees and risks.
I have seen the usage of cryptocurrency grow tremendously over the last 15 years. It is a technology that is only going to grow.
I am not an expert on trading crypto, so I would invest $20 to get started with learning. There are plenty of currencies out there that are less than a dollar per coin. I am currently using Coinbase as my main crypto exchange.
Final Thoughts on How to Invest $600
Whenever I invest any amount of money, I start with knowing what I am investing in.
As you can see from the example investments above, I only put a little money into crypto because I do not know that investment very well. I am much more confident in investing in stocks and ETFs, so Public got a large percentage of my money.
No matter where you decide to invest your money, be prepared for gains and losses, and know that suitable investments will rise over time. Now get started, and let’s turn that $600 into an investment of $10,000.