How to Invest 500 Dollars - Make a Million Small Investments at a Time

For many people, $500 can either be small or a bignitty-gritty details of your investments, you can
amount of money depending on their perspective. Noalways opt for the discount brokerage houses. You
matter the perspective, however, you can make awill have numerous options in the stocks you can
million dollars out of your 500 bucks and get a biginvest in with the added bonus of the stockbroker
bang out of it. The trick is in making smallfees not making too much of a dent into your
investments at a time from your seed investmentalready meager seed capital. When choosing the
capital.discount broker, you have to select based on fees
Invest on a Compounding Certificate of Depositscollected, range of access in terms of communication
Banks and credit unions offer certificates of deposit,and money, and customer service. You want the
which are basically savings account with a difference.best in a discount stockbroker without paying for it
Certificates of deposit are on a fixed terms, fixedwith plenty of money.
interest basis such that you cannot withdraw itGo for a Stock Purchase Plan
before its maturity date although the interest ratesThere are three ways to go about availing of a
are higher than most savings accounts. To choosestock purchase plan (SPP). First, you can ask the
from amongst the best CDs that will give you thecompany you are working for about an SPP.
best bang for your buck, use tools like the annualDepending on the company, it can take the form of
percentage rate and annual percentage yield. It mustcompensation when your employer matches your
be emphasized, however, that you should alsostock purchase or stocks can be offered at a special
consider withdrawal and renewal options, amongdiscount. Second, you can buy smaller quantities of
other things.stocks for little to no transaction fees provided that
Invest in Stocks on Your Ownyou purchase on a regular basis. Even blue-chip
You need not hire a stockbroker to invest in stocks.companies can offer this so check with your
You can save on the stockbroker's fees, thereby,stockbroker, if you have one. Third, if you are
allowing your $500 to buy one more share. There arealready a stockholder and you wish to grow your
approximately 1,400 publicly-traded companies thatinvestments with the $500, ask the company
offer shares directly to investors. The best thing ismanagement about programs where your dividends
that you can choose the terms of investment thatare reinvested in additional shares or where you can
suits your needs and seed capital, whether it is termsbuy additional shares through automatic payments
of minimum stock purchase, enrollment and inactivityfrom your salary. Your $500 can add capital to these
fees and other requirements. Examples of theseprograms.
companies include Coca-Cola (one minimum share, noNow, assuming that you have an extra $500 every
enrollment fees) and Disney (invest for as little asother month from your savings, you can invest in
$100 with a $10 enrollment fee).these venues and watch your money grow and
Invest in Stocks with a Discount Brokeragegrow. After all, $500 can become a million dollars
If you still want a stockbroker to deal with thewhen you invest and reinvest it.