Investing is not just for those who wish to build a fortune, or people who have a lot of money. Investments are for everyone, whether you have a few thousands saved up or just some extra money left over after paying the bills.

Here are some ways you can invest, depending on your financial situation.

When you have a little money you can invest in …

This is not the time to do anything risky, as you want your investment to grow steadily and confidently. Some ways to achieve that goal are:

• Mutual funds

Mutual funds are not only a safe way to invest, it is also an easy way to invest; many of those who are just beginning to invest will begin with mutual funds. A mutual fund is essentially a collection of investments in stocks, bonds or a combination of bot.

Once you invest in a mutual fund you own a share of that fund. The manager of the fund invest your (and all the other investors who have invested in the mutual fund) money into a number of stocks and then monitor its growth. Thus, with a mutual fund, you do not have to worry about what and how much stocks to buy as well as how to best build an investment portfolio.

You can put as little as $100 in a mutual fund. Though this may seem like a lot of money to some, when compared to other investment options, a mutual fund is one of the safest, easiest, and cheapest way to invest.

• Bonds

Although you won’t profit as much when you purchase bonds when compared to stocks, bonds are typically less risky to invest in. Bonds are essentially debts — when you purchase a bond, you are technically lending money to a company.

Eventually you will be able to get the money you had lent back (face value listed on the bond), but before then you will be able to profit from interest. Interest rate of a bond is also known as the “coupon”, and is usually predetermined before purchase of the bond. They are usually semi-annual rates.

For example, if you’re buying a $500 bond with a 9% coupon, you will receive $45 twice a year until the maturity period is up (when the company has to pay you the $500 back).

• Apps

A more recent, non-traditional way of investing is through apps. These apps — whether available online or on mobile — allow people to start investing, no matter how little experience or money they have. Some popular investment apps are Acorns and Robinhood.

Acorns is a smartphone app available to both iPhone and Android users. The app allow users to invest in mutual funds with debit or credit card purchases. Essentially, partner companies with the Acorn app will reward you if you purchase a product from them. These rewards turn into what is called “FoundMoney”, and can be used to invest in mutual funds. The app is free to download, and costs $1 a month for accounts under $5000.

For those interested in stock investments rather than mutual funds, Robinhood is the app for you. There are no account minimum or trading fees, making investing less pricey.

When you have some money you can invest in …

Have your investments grown, or do you have a full-time job that pays relatively well? Either way, a little more risky (but rewarding) investments might be a good idea, if you have $10,000 or more saved up.

• Micro-cap and Penny Stocks

Are you getting used to investing, and want to see what other options there are beyond mutual funds and buying bonds? You can invest in a micro-cap company!

Micro-cap companies are typically referred to as penny stocks; they are basically stocks of small start-up companies with a market capitalization ranging from $50-$300 million. Low market capitalization means there is potential that you will either earn great profit or suffer some big losses. This is the risk of investing in startups; however the risk may be worth it, especially if the small company grows to outperform giant companies.

Micro-cap stocks are not traded on the New York Stock Exchange (NYSE), instead they can be found on the OTC Bulletin Board as it isn’t as regulated as the NYSE.

• Money Market Accounts

This is a special kind of bank account that has a high minimum balance (usually around $9,000) as well as limited withdrawals. They also have a higher interest rate when compared to other kinds of bank accounts. Because of these characteristics (high minimum balance, limited withdrawal, high interest), money market accounts are considered to be one of the safest investment accounts.

When you have a lot of money you can invest in …

These types of investments are risky and often costly. If you are an investor with a lot of money or enjoy taking risks (preferably, you are both of these things though), the type of investments below may be right up your alley.

• Stocks

You may be able to invest in stocks even when you only have some money, but some stocks are pretty risky to invest in. This is because stocks are dependent on market situation, which can change daily. Don’t lose hope in your investment if you do not see results right away, as market instability and inflation can cause short-term losses. Despite the risk and lack of consistent returns, investing in stocks produce the best benefits when it comes to long-term investment.

• Hedge funds

Hedge funds are like mutual funds for multi-millionaires who want to take risks with their money. Those who invest in hedge funds usually have at least $1 million in net assets, excluding primary residence. Managers of hedge funds do high-risk investments using a variety of different strategies, and they expect a high profit in return.

While there is a good chance you can earn a lot of money with hedge funds, there is also a chance that you can suffer a dramatic loss.

Summary

Depending on your financial status and how much risk you are willing to put your money through, investment strategies will vary. The best kind of investment strategy is one that you are comfortable with and can help you earn some money.

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