If you are looking to start investing with limited funds, you might have more options than you think. The best fit depends on your comfort with risk and how hands-on you want to be. From savings accounts and retirement plans to fractional shares, ETFs, and crowdfunding, there are various low-cost ways to build momentum at nearly any budget. Even if you only have a few hundred dollars to start, these 11 small investment ideas can help you take the next step toward a healthier financial future.
1. Open savings accounts and Certificates of Deposit (CDs)
While savings accounts are not what people tend to think of first when they think of investing, they are among the simplest forms of investing. They offer returns in the form of interest and are an easily accessible, useful small investment opportunity.
- Savings accounts: There are different kinds of savings accounts you can open, depending on your needs. Money market and high-yield savings accounts both give you a higher rate of interest than a standard savings account, but you will usually have to keep a minimum balance in either to avoid paying a fee.
- CDs: A CD offers a longer-term guarantee of interest but requires a commitment of months or years to avoid potential penalties. Interest rates on CDs are generally higher than on a standard savings account. To optimize your access to funds deposited in CDs, you may want to consider a CD ladder, which involves opening a series of CDs with varying maturity dates.
2. Start your own business
Starting a business can require a significant investment, depending on the type of work you pursue, but it doesn’t always have to. Many service-based businesses and microenterprises allow you to start with minimal upfront costs, particularly if you’re leveraging skills you already have.
For example, if you have experience in carpentry, repair work, or cooking, you can turn that expertise into a side business and begin generating income without a large investment in inventory or equipment. If you need more inspiration, check out our list of the cheapest, easiest, and most profitable business ideas for beginners.
3. Get Individual Retirement Account (IRA) Plans
IRAs are a great way to invest in your future and offer significant tax advantages. If you’re considering this small investment idea, there are a few different IRA options available.
- Traditional IRA: A traditional IRA allows you to contribute pretax dollars (up to $7,000 annually for individuals under age 50 or up to $8,000 annually for individuals 50 years of age or older) toward investments that can grow tax-deferred until you begin drawing on the account after age 59½. When you draw funds from your traditional IRA, the funds drawn are considered taxable income.
- Roth IRA: A Roth IRA is funded with after-tax dollars, so contributions aren’t tax-deductible. The annual contribution limit is the same as that of a traditional IRA. You can withdraw contributions at any time, but for earnings to be withdrawn tax-free, the distribution generally must be qualified, which typically means you’re 59½+ and have met the 5-year rule.
- SEP IRA: A SEP IRA is a retirement plan option for self-employed individuals and employers. The employer makes contributions (not employees), and the annual contribution generally can’t exceed 25% of compensation or $70,000 for 2025, whichever is less. Many providers allow low or no minimums to open an account, but employer contributions must follow plan rules for eligible employees.
4. Open employer sponsored 401(k) or solo 401(k) plans
If you are employed and your employer offers a 401(k), this is an excellent opportunity to invest. Many employers offer a percentage match for any funds that you contribute to your 401(k); this employer match is essentially free money invested for your retirement. Additionally, 401(k) contributions are pretax and reduce your taxable income, and you choose the level of risk you are comfortable with when choosing how your funds are invested.
Solo 401(k) plans are designed as a way for single-employee businesses to save for retirement, unlike SEP IRA plans, which can be used if you have a few employees. Solo 401(k) plans will have administrative costs involved, such as annual fees and administrative charges, depending on the provider, but they are another option for providing tax-deferred retirement savings. See our article on how to set up a Solo 401(k) if you need guidance.
If you’re looking for a solo 401(k) provider, ShareBuilder 401k is a great choice. It offers low-cost retirement plans, making it easy and affordable for businesses of all sizes to open an account.
5. Invest in exchange-traded funds (ETFs)
An ETF, or exchange-traded fund, bundles multiple investments into a single fund that you can buy and sell on a stock exchange, much like an individual stock. You can purchase ETFs through most traditional brokerages and online investing platforms, and many offer commission-free ETF trades.
There are ETFs designed to track broad market indexes, specific industries, commodities, or particular investing strategies. Because a single ETF can hold dozens or even hundreds of securities, it can be a simple way to add diversification to your portfolio. Depending on the platform and whether fractional ETF shares are available, you may be able to start with a relatively small amount, sometimes around $50 or less.
6. Invest in mutual funds
Mutual funds are an investment vehicle in which multiple investors pool their money to purchase a collection of stocks, bonds, and other securities. They are managed by a professional fund manager and allow you to diversify your investment in a way that you wouldn’t be able to if you were purchasing individual stocks. If you’re invested in a 401(k), then you’ve likely already invested in a mutual fund, which is a common means of retirement investment.
The performance of a mutual fund is determined by the performance of the individual assets that the fund is composed of. As the value of the mutual fund assets increases, so does the value of your investment. Conversely, if the assets of the mutual fund decline in value, the value of your investment will be reduced as well.
7. Buy partial shares of stocks
Conventional investing requires a significant amount of money, given that many stocks have a very high price. But fractional share brokerages allow you to buy partial shares of individual stocks or fractional shares of ETFs or indexes, giving you access to investing with lower levels of cash.
As a small investment opportunity, these fractional share services often run on low or zero commission. Since investors can buy partial shares with very small amounts of money, standard commissions would quickly eat up their investments. The rise of zero-commission trading has also led to larger brokerages changing or eliminating their commissions.
8. Invest your spare change
For investors who want to put small amounts of their personal funds into the market, platforms like Acorns offer you the ability to invest your spare change. When you make a purchase with your credit or debit card, Acorns rounds up your purchase to the nearest dollar and puts the change into an investment account. You can put money into a standard investment portfolio, a retirement account, or even an investment account for your kids.
One of the problems with this small investment opportunity is that it can take a long time and a lot of work for your investments to grow into something significant. With automated investment, it is surprising how quickly your accounts grow, and all the while, you may not even notice the money leaving your checking account because it gets taken out in such small amounts.
9. Crowdfund someone else’s business
While there is always a risk of losing money when investing in another’s business venture, both equity and debt crowdfunding can offer an opportunity for small-level investment in a new venture that you think has potential. Your investment can be made in return for either an ownership stake or your principal investment being returned over time plus interest.
Crowdfunding platforms are popular for researching potential business investment options. Peer-to-peer lending (where you lend money to another individual through a third-party platform) may also be a viable option to pursue. Just like investing in the stock market, the potential risk of loss means that personal funds, not business funds, should be used if you choose to invest in crowdfunding.
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10. Pay off debt
Paying down existing debt, whether personal or business-related, can be one of the most effective ways to improve your overall financial position. In many cases, the interest you pay on debt is higher than what you can reliably earn from savings or lower-risk investments.
When you put extra money toward your balances, you reduce the principal faster and cut the amount you pay in interest over time. You also free up cash flow for future goals, including investing. For example, if you have a $100 monthly payment on a personal loan, paying off that loan requires a greater one-time effort, but it can leave you with an extra $100 each month to redirect toward savings or investments.
11. Reinvest in your business
In addition to paying off debt, look at low-cost ways to improve your business’s efficiency and performance. While investing in your business will cost money on the front end, the increase in productivity will hopefully yield additional revenue and profit. Investing in marketing, research and development, and upgraded software or equipment for your business can go a long way toward business growth.
What to consider when choosing an investment opportunity
When selecting the right small investment opportunities for you, there are a few things you should consider.
- Financial goals: What are you trying to achieve with your investment? Having a financial goal in mind will help you determine which small investment ideas will help you reach that goal.
- Level of risk: How much risk are you willing to take? Some investment opportunities have minimal risk, such as deposit accounts. Other investments are more volatile, like mutual funds and ETFs that rely on market performance. Understanding your own risk tolerance will help you decide which opportunities are best for you.
- Level of involvement (Active vs Passive): How involved do you want to be in the investment strategy? Active investments require you to take actions to aid in the trajectory of your investment. Investing in stocks is often considered an active investment, as you buy, sell, and trade as you desire. A passive investor will typically choose diversified mutual funds or ETFs that are managed by someone else.
- Tax impact: Income derived from investments in the form of interest, dividends, and capital gains is generally taxable. You can avoid additional tax burdens by investing in retirement accounts, such as an IRA and 401(k).
Frequently asked questions (FAQs)
If you are investing with a limited amount of money, strong options include interest-earning deposit accounts, contributions to retirement plans such as 401(k)s and IRAs, diversified investments like ETFs and mutual funds, and smaller commitments through crowdfunding platforms.
Some of the simplest ways to start investing with a small amount include contributing to a 401(k) if you have access to one, putting money into an interest-earning account such as a high-yield savings account, CD, or money market account, and using an investing app that lets you buy fractional shares.
One of the simplest ways to start investing is with an interest-earning bank account. Interest-bearing checking accounts, savings accounts, and CDs let you deposit almost any amount and earn interest automatically, with little to no ongoing effort.
Bottom line
You don’t need a large balance to start investing. Options like high-yield savings accounts, retirement contributions, and diversified funds such as ETFs can help you build long-term savings at a pace that fits your budget and risk tolerance. For business owners, paying down high-interest debt or reinvesting in efficiency can also strengthen your overall financial position.
