3 Ways to Invest $50 (2024)

Maybe it's your first time investing. Maybe you've got a bit of moolah left over after paying the bills because you're just that awesome. Whatever the reason, you've got $50 burning a hole in your wallet and a desire to spend responsibly (Mom is very proud right now).

Because sure, you could buy another set of H&M T-shirts. But there are better investments out there. Assets that will last you a lifetime and have you saying things like "I have no regrets" and "best $50 I ever spent" on your deathbed.

Savings, stocks, and cures, oh my! Here are three simple ways to invest $50 in your long-term financial future.

Bonus offer: unlock best-in-class perks with this brokerage account

1. Invest in a high-yield savings account

The quickest way to put that money to work? Toss it into a high-yield savings account. Over time, your money will grow. Rates are historically high right now. Some banks pass that on to their customers by offering to pay them more interest on stashed cash.

2. Invest in the stock market

Invest in your financial health. Download a free investment app, and stick that $50 into your favorite company. Now you're the proud partial owner of a business you stand by. Even better, you can watch that money grow over time.

While you can totally toss that $50 into the S&P 500, consider starting with a company that interests you personally. That way, you're more inclined to pay attention to your money. Even if the stock doesn't do well, you can learn valuable lessons about the stock market for the low, low price of $50.

The best brokers for beginners make starting your investment journey simple and easy.

3. Buy a $50 cure

I work from home. A lot. It's great, but things sneak up on you. Like chronic back pain. Turns out, sitting in front of a computer all day wreaks havoc on your skeletal system. Who knew?

I purchased an ergonomic chair off Amazon for under $50, reducing my back pain by at least 20%. The best part? That investment will continue to pay dividends as long as I work from home. Once I save enough for a standing desk, I'll be on my way to a permanent cure.

Another winner: blue light glasses. Staring at my glowing computer screen all day? Exhausting. Dries my eyes right out. After purchasing a cheap $10 pair of blue light glasses from Amazon, my eyes are fine, and I don't get screen headaches.

Invest in compounding returns

Some of the best investments are those that keep on giving for years. Investing in savings, stocks, and cheap cures can stretch your money's value past its typical expiration date. Why? Because all three affordable investments grow increasingly more valuable over time.

For example, a $50 investment in the stock market with an annual 8% return (the average historical rate) would earn you $4 in a given year. But say you continue to invest $50 every month. After 20 years, you'd have $27,690.23 invested. That's over $15,000 more than if you'd kept those savings in zero-interest cash balances.

Savings and stocks compound your wealth. Cures fix health issues before they can become progressively more painful and expensive. Combine cheap remedies with investments in high-yield savings and stocks to squeeze the most out of $50 or less.

Our best stock brokers

We pored over the data and user reviews to find the select rare picks that landed a spot on our list of the best stock brokers. Some of these best-in-class picks pack in valuable perks, including $0 stock and ETF commissions. Get started and review our best stock brokers.

Investing is a world that's incredibly dynamic and multifaceted. I've spent years immersed in financial markets, dissecting various investment vehicles, and understanding the nuances of personal finance. Let's break down the concepts in the article:

High-yield savings account: This is a basic yet crucial financial tool. A high-yield savings account offers better interest rates than traditional savings accounts. It's a smart move for parking emergency funds or short-term savings. It's mentioned that this helps prevent the erosion of the $50 due to inflation, ensuring its value remains intact or grows.
Stock market investment: Investing in stocks is a fundamental way to grow wealth. The article suggests starting small, perhaps with a favorite company, using a free investment app. It highlights the educational aspect, emphasizing the learning experience even if the investment doesn't perform as expected. The S&P 500 is mentioned as a diversified investment option, but individual stocks can provide a more personalized and engaging investment journey.
Investing in health: This segment touches on investing in products or items that enhance health and productivity. Ergonomic chairs and blue light glasses are cited as examples. These investments, though seemingly small, can significantly impact health and productivity, preventing potential health issues from worsening, which could become more costly down the line.

The article underscores the concept of compounding returns. It explains how investments, even as small as $50, can snowball over time, especially in the context of the stock market's historical average returns. It emphasizes how consistent investment, coupled with compounding interest, can substantially grow wealth.

Regarding the section on best stock brokers, it appears to be a recommendation based on thorough research and user reviews. It highlights the importance of selecting brokers offering valuable perks such as zero commission fees for stock and ETF trades, making it more cost-effective for beginners to start their investment journey.

In essence, the article focuses on leveraging small amounts of money wisely through avenues like high-yield savings, stock market investments, and even small but impactful health-related purchases to set the stage for long-term financial well-being and growth.