3 Ways to Invest $50

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.

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.

The best savings accounts can help prevent that $50 from losing value to inflation. Even better, you can put that money toward your emergency fund. That way, you'll be even better prepared to weather the recession financial experts are forecasting.

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.

Both investments were 100% worth the money. Why? Because they fixed health issues that could have gotten progressively more painful and expensive down the line.

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.