With the latest technology, investing small amounts of money is easy nowadays where you no longer even need to leave home as long as you have a computer and an internet connectio. The online businesses including banks also have good customer service representatives who can readily help you to guide step-by-step when it comes to online application forms, fees involved, and among other things that you need to know before you start to invest a small sum of your hard-earned money.

One of the ways to invest your available funds is by opening an account with an investment management company. There are popular companies that provide easy and fast investment alternatives for new investors. Look for investment management companies out there and research which is the best for you. Any investor should read the compny's prospectus carefully and consider investment objectives, risks, and charges as well as expenses prior investing or sending money. 

It would be good if you can also read some reviews from their real customers so that you'll be able to weigh if it's the one that you're looking for. You may also look for those that have a wide range of low-cost index funds that only needs little amount of work on your part after you can fund your newly-opened account. Busy people also look for actively managed mutual funds without having to pay investment fees and will let them regularly invest in small amounts of money safely and securely so try to look for these features too.
Another way to invest your small and hard-earned money is by opening a savings account at your local community credit union or any bank that you feel safe and reliable. You may deposit small amounts of money into your savings account every month from your paycheck. You'll be surprised how the interest will accumulate overtime and this can add a good amount of money in the future if you'll just continuously do this habit of saving. As long as you'll be able to apply in banks that have the highest interest rates then your money will just grow overtime if you'll keep on saving. You also need to check your bank statements each month to trace any fraudulent transaction that might not be yours as well as track the development and performance of that particular bank.

Examine and study your current savings, checking, and other bank accounts online or offline. If you have extra money to invest in the stock market and have little or no debt at all then decide the right amount of money to invest in the stock market. The amount of money that you'll be able to invest will help conclude the kind of stock trading account that you can also open. It's easy to open a stock trading account with an online discount broker. There are many available discount brokers online like Scottrade, eTrade, etc. There are more other available discount brokers through the world wide web so try to check them out before you'll open an account. After you're done opening one, you'll be able to buy stocks, mutual or index funds and ETFs with a small transaction fee.

There are discount brokers via the internet that will let investors set a number of free trades every month. Mutual or Index funds would be good choice if you're still starting. Once you're already familiar with investing methods and gained enough skills as well as experience in actively investing your money in the stock market, then you can increase little by little your buying and selling stocks by yourself. It's advisable to listen to your own instinct and not rush things at once especially if you're able to profit from this type of business. Avoid being addicted to it because you may also easily get bankrupt so fast. Self-control is the key.

A CD investment is another way to invest your small and hard-earned money. New investors go for a CD which means "Certified Deposit". Some banks will allow you to start a CD with a minimum deposit in the amount of $100 up  to $250,000. Just make sure to invest in a CD through the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration ( NCUA) insured business institution.  In this way, you'll be guaranteed a return and your interest earned will be securely protected whatever happens. Other countries may have other names of such agencies. 
Other investors like this option once they start to open their CD accounts since they will have an alternative of having them both but they will mature at different times like every month while the other one will mature every year. If you decide not to take the money out then it will just proceed smoothly and roll over to the longest term option available so the more you wait then the more retirement money that you'll be able to receive in the future. However, you'll need to be clarified very well with all the available options if you have decided to open a Certified Deposit account or accouts. You can also call and talk to the professional bank representative for more information.

Tips & Warnings

  • Avoid buying unnecessary things and start to collect any small amounts of money. You can add this amount to your savings deposit each month.
  • Look for online stock trading accounts. You may be able to decide which one will suit your financial needs especially if you can read reviews coming from real customers. Check for required minimum opening deposits including trading fees.
  • If you have good self-control when it comes to financial matters, then a high-yield savings account could work best for you. Request from your present employer a direct deposit payment plan so that your own money will be directly transferred into your investment account. Automated transfers are advisable especially if you have no time to go to the bank. This will save you a lot of time and money.
  • Avoid high risk investments. It's advisable to always start out small amounts of money then through successful experience, you'll gain knowledge and gradually add little by little into it.
  • Be cautious if you're planning to pay for financial planners or advisers. They may just sell you mutual funds loaded with high fees. 
  • Compare CD rates before opening an account. Generally, the longer the time that you agree to invest your money, then the higher the CD rate that you'll also earn. Once you start to invest your money for a Certified Deposit, you're no longer allowed to withdraw it for a period of time. There are also some options available for you like a year or two or up to five years. Certified Deposits offer a higher interest compared to a savings account. You'll be amazed how your money will grow in five years time if you're willing to wait. You can also select to make a CD ladder which will increase your money if you open another CD through a different time period or term. 
  • It could be stressful when you get older and you have no money saved. It would be better to save little by little while you're still actively working (right time to save) so that you'll have something left for your future needs.