Where to Invest Your Money If You Have Less Than $10,000 To Invest

When you transform your money from cash to investments, you create dynamic process where your money is actively used to make more money. In essence, you are putting your money to work for you.

However, there is a broad misconception that only the wealthy are able to invest their money, when in fact the opposite is true. Even if you have less than $10,000 in spare funds, you can put your money into investments that will pay out profits over time.
The sooner you begin investing, the faster you will be able to reap the rewards. If you don’t yet have the spare cash sitting around, don’t sweat it—just look carefully at your spending habits and start looking for new ways put some money aside so you can immediately increase your funds that are available for investments.

Once you have decided to make that life-changing choice to invest, browse through our hand-picked options where you can put your money.

Peer to Peer Lending

Skip the middle man and the banker’s fees and go straight to the source with peer-to-peer lending, where you lend directly to the borrowers. These opportunities tend towards a higher investment yield for the lender while also offering a better deal for the borrower by eliminating restrictions and higher rates.

There are several sites online dedicated to peer-to-peer lending, such as the acclaimed Lending Club or Prosper, and you can start lending with an investment as low as $25, though the recommended amount is $2,500. While there is a small risk with this style of investment, the high interest rates help to cover the risk so you can still come out on top.

High-Yield Savings Account

This risk-free option guarantees you will not experience any loss of money during the investment process. In fact, the FDIC insures up to $250,000 placed in these accounts.

However, when you choose zero risk, the interest rate will also be low. These accounts are best if you want your funds available to access at any time, while also wanting returns on your money.

Emergency Account

Arguably, this is the most important investment, especially for first-time investors. Creating an account that holds enough funds to sustain your lifestyle for at least three or four months ensures you and your family’s protection against unanticipated disasters or loss of income.

This account should be placed into either a bank savings account or an account for money marketing where you can quickly withdraw the money at whatever time you may need it.

Get it Matched in Your 401(k)

Guaranteed investments are rare, and as a general rule they should be taken advantage of with intelligent tactics. A 401(k) retirement fund is one of these opportunities, since anytime you place money into the fund, your employer will match your dollars, depending, of course, on your predetermined arrangement.

Of course, you can’t dump dollars directly into your 401(k) account, so the best way to achieve this is to put the funds into your savings account, and then max out your monthly 401(k) contributions. With every monthly contribution from your paycheck, withdraw that much from your savings account.

Investment Programs on Auto Pilot

If you prefer a hands off approach, then your ideal investment might be into one of the online auto piloting programs, often called robo advisors. Once you submit your funds, along with a managing fee, the program will handle everything from selection, allocation, harvesting tax losses, and more.

Certificate of Deposit

The certificate of deposit account, referred to as a CD, is offered by banks, and can range between as short as three months to repayment or up to five years, and you get to choose what option suits you and your funds best. Of course, the longer you are able to invest your dollars, the better your ultimate returns will be in your wallet.

Keep in mind that for this deposit, if you find you need to withdraw funds before the set maturity date, there is a fee, typically equaling to three months of your accrued interest.

Low Cost Mutual Funds

Perhaps you like to have a hand in where your money goes, and balk at the idea of another person or group handling your investments for you. In these cases, you might be best suited for a low cost mutual fund, which allows for a personal touch and more independent control of where your money goes.
While there is a minimum to invest in these funds, if you have up to $10k available, you will be able to invest in at least several.

Motif Investment Platform

If you want to take your creativity with your investments a step further than mutual funds, you can use Motif which offers opportunities to invest, such as lending to China for solar energy. Starting with a minimum of $250, you can even built a custom-designed motif that is built off of your own personal interests.

Get Rid of Your High-Interest Debts

Any credit card or loan carrying a high interest is a drain on your wallet, and the sooner you can pay it off, the sooner you will benefit from a lightened monthly load of bills. This money can now go directly into your savings or other investment funds so you can keep growing your money, instead of paying interest.

Real Estate Investment Trusts (REITs)

Investing in real estate is a highly desirable option, but obviously in today’s market, $10,000 isn’t going to get you very far. However, when you put money into a real estate trust, as opposed to outright ownership, you can get several new benefits, such as high income, tax advantages, and high liquidity.


Cryptocurrency, which developed roughly a decade ago, didn’t begin as an investment platform. At its core, it’s meant to act as a digital currency that is independent of any geographically regulated currency. Although it still acts as a worldwide web currency, it has also become an investment opportunity. If you would have been an early investor in Bitcoin, you’d be rather wealthy today. However, many still see cryptocurrency as an investment opportunity. That said, buying and selling crypto coins may be rather risky. For example, the market reached a record high in December, 2017 and fell significantly a month later. Though, if you have some expendable funds and an interest in the market, investing in Bitcoin, Ethereum, Ripple, or others could be a great way to expand your portfolio.

Begin Your Investment Process

It doesn’t matter where you want to invest, or how much money you have available, the option to invest your money and begin to grow your savings is out there. Now is the time to take the next step and make your investment.
When you find ways to better your budget and put your money to work, you can reap the rewards sooner rather than later.