How to Invest With $5,000 or Less
- 1). Set goals. If you want to buy a house or car in a few years, your investment strategy will be different from the one you will adopt if you want to invest for retirement and other long-term goals.
- 2). Get rid of high-interest debt first. Use part of the money to pay off credit card debt and other high-interest loans.
- 3). Invest part of the money in a tax-deductible individual retirement account (IRA) or a Keogh plan (for the self-employed) if retirement is among your goals. Not only will you be saving for retirement, but you'll also be getting tax breaks.
- 4). Choose an IRA or Keogh investment that suits your goals and your appetite for risk. You may want to put the money in a mutual fund that qualifies as an IRA or Keogh plan.
- 5). Consider investing a portion of the money in an aggressive-growth mutual fund if your goal is to raise money for a down payment on a car or house.
- 6). Consider launching your own small business. If you know how to write, for instance, buy a computer and take on freelance writing assignments. The investment will pay for itself in several months and give you something to fall back on if you lose your regular job.
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