What can I do with $500?

[nala12]

I know it's not that much but I have $500 I want to use for investing.

Should I put it into stocks or maybe a CD or 401k?

It's not a lot but I want to get started with some kind of investment and any help would be great.

[karan]

I advice you to invest in share market as there is ample opportunity to double your money and if you don't know how to buy or sell share you can get information at http://www.sharetradingeducation.com/ and work from your home with many softwares available for trading of stocks.I have earned around 1000$ in 1 month.

[TNShannon]

I think it depends on how soon you might need the money.

First, consider this: Do you have an emergency fund? If you do, perfect...but if you don't, use that 500 dollars to start it. You need to have at least 1000 dollars in there, but if you can manage to save enough in your emergency fund to cover three to six months of expenses, you're in even better shape.

Investing in CDs might not earn much interest. Mutual funds will earn more, but your money won't be as safe. It's a catch-22 when you play the investment game, really...but I use this rule of thumb: If you can live without the money, invest aggressively. If you might need the money in the near future, invest conservatively.

I hope this helps!

[ChattyKathy]

I agree with the above poster in that you need to make sure and have an emergency fund. Putting the money in a CD only to take it out a few weeks or a month later won't help at all. Establish an emergency fund and keep the money there. Don't spend it on new clothes on a rainy day.

[TNShannon]

The peace of mind you can get from an emergency fund is absolutely priceless. You never have to wonder if there is enough...and when that old refrigerator kicks the bucket or you get that toothache but you don't have dental insurance, that's when you will be so glad you saved the money. An emergency fund definitely helps me sleep better at night.

[betty_lou]

Put the money into a savings/emergency account and than work on other investments after that.

[singleparenting88]

I agree put the money in your savings account, it's a big thing already.

[angie828]

I say put it into a short term savings account. I did this with $900 I did from tax time. I was able to make some interest off it for a year and a half and then I could take the money and walk or reinvest it.

[jebri]

That's a great idea Angie. Rather than just sticking it in a regular savings account that earns hardly any interest, a short term account like a CD is good alternative. It gets more interest and it's better than just letting it sit idly in a regular savings account.