I want to invest 500 usd as a noob where to start? thanks?
Before you spend $0.01 on any investment, you must know what you’re doing, why you’re doing it and how to do it and make sure you have the money to do it. Also, you must have an understanding of the rules & regulations that govern what you’re trying to do. Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself. Begin your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs. Start your education by reading “Investing for Dummies” by Eric Tyson. Bottom Line - 1 -Know what you are doing, why you’re doing it and how to do it. 2 -Have a written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. And have the discipline to follow such a plan 3 - Sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you can trade/invest. 4 - A written money management program in place. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. 5 – An understanding of the rules & regulations of the industry. Accomplish these five items and you'll be ready to start
First, consider how that $500 could benefit you in the present. Could you pay down a credit card or loan? Maybe paying off your car insurance for the year will reduce your overall costs? Even buying bulk food or toilet paper may save you money in the long run. $500 isn't a lot. Your best bet would be to use it to educate yourself. Knowledge is always a safe investment.
I would open an account with an online brokerage, like Schwab, and either invest it in mutual funds, or if you think it would be more fun, buy some stock with it. $500 is a small amount of money, so it really doesn't matter what you do with it. But at least if you invest it, it won't be like spending it and then it's gone.