An investment is an asset or item acquired with the goal of generating income or appreciation. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.
1. Savings Accounts
To be sure, you won’t be able to earn a lot of money on your investments at the bank. However, the advantage that banks offer is that you can invest very little money in a savings account, earn a little bit of interest, and have zero risks of loss. Let me be honest, savings accounts are not the most exciting investments. The best purpose for a savings account is to use them as a place to accumulate a larger amount of capital for higher risk/higher reward type investments later on. Some of the investments in this list will require $500 or $1,000 to get started. While that is not a ton of money, if you are getting started with a smaller investment, your best bet might be to take your time to build up a little cash and expand your investment options.