Investing is the best way to grow your money and become wealthy. If you’d invested $10,000 in Amazon stocks a decade ago, today your investment would be worth over $1.9 million.

But you’re probably thinking, “Where was I going to get that kind of money 10 years ago?”

Well, it’s that kind of thinking that hurts our investment culture. For what it’s worth, a $500 investment in the same stocks would be worth about $8,500 today, which is still a tidy bundle.

And that’s the point. You don’t need a lot of money to make solid investments.

Ready to invest your pennies?

Here’s a beginner’s guide to investing small amounts of money.

Get Out of Debt

If you’re like most Americans, you probably have over $5,000 in credit card debt. The longer you take to settle your outstanding balance, the more interest keeps piling up, and the deeper you sink into debt.

This is why one of the smartest investment you can make is to get out of debt. It might not sound like a real investment, but trust us. It’s counterproductive to invest while you’re probably losing more money in interest payments.

Prioritize paying off your debt.

Invest in Yourself

Just like saving, investing needs you to have a disposable income. A greater disposable income means you can make more investments, which increases your chances of getting bigger returns.

However, given the fact that 80 percent of American workers live paycheck to paycheck, many people are unable to raise adequate investment funds.

The good news is you can use whatever little money you have to invest in your skills. For example, you could pay to learn a new skill –such as coding. This can enable you to land a side job and boost your income.

Or you could purchase books and learn more about investing before you start making actual investments. A knowledgeable person is more likely to make sound investments than one who knows little about how money works.

Start a Small Business

Are you among the 55 percent of aspiring entrepreneurs who say limited access to money is the main reason they’re unable to start a business?

If yes, you’ve probably not tried hard enough, or you think you need lots of money to start a small business.

As unbelievable as it sounds, you can start a profitable business with $500 or less. You just need to leverage your skills or find an idea that’s not capital intensive.

For instance, let’s say you’re a professional web designer. Instead of hunting for a formal job, you could start your own web design business. Just build a website and market your services on social. Gradually, you’ll start attracting a steady stream of clients and your business could grow into a large agency.

If your business idea requires more money than you’ve, consider running a crowdfunding campaign. You could also ask your friends and relatives to chip in.

Penny Stocks

For most people, this brings to mind Jordan Belfort, the former stockbroker who conned millions of people into purchasing penny stocks that didn’t exist.

If you’ve developed a fear for penny stocks as a result, we’re here to tell you that penny stocks are real and can turn your pennies into dollars. There are thousands of legitimate small public companies trading at low prices (typically below $5) per share.

It’s true that fraud is rife in the penny stocks market, so it’s vital to do your research before investing your hard earned pennies. Work with a reputable stockbroker and always be on the lookout for stocks with high-growth potential.

In addition to penny stocks, don’t shy away from investing in regular stocks. You don’t need thousands of bucks to invest in the big companies. All you need is the patience to wait for your small investment to grow over a period of several years.

Peer to Peer Lending

Have you ever borrowed money from a friend at a small interest? That’s a form of peer to peer lending.

Thanks to internet technology, you no longer have to borrow from people you know at a personal level. Many of the top financial blogs praise how now have web-based peer to peer lending platforms that connect borrowers with lenders.

With about $1,000, you can start lending money to “peers” who will then pay you back with a small interest. Your risk of losing money is low because the lending platforms have tools that enable you to assess the risk profile of a potential borrower before making a decision to lend.

Certificates of Deposit

You’ve certainly heard of fixed deposit accounts or even operated one before.

Well, a certificate of deposit and a fixed deposit account is essentially the same thing, only that naming varies from bank to bank.

Investing in a CD involves depositing a certain amount of money for a specified period of time. After this period lapses, you earn interest. But if you opt to withdraw the money before maturity, you might lose the interest or a certain percentage of it.

The trick in making decent profits from CDs is consistency. Once your first deposit matures, go in for another.

Plus, interest rates vary between banks, so be sure to look around and find the highest rates.

Investment Mutual Funds

Investment mutual funds are a classic case of unity is strength.

When several people pool their pennies, a sizeable mutual fund is created. The fund, which is professionally managed, can make a range of investments, from real estate to stocks, bonds, and even precious metals.

The best bit is you don’t have to start calling your friends and asking them if you can pool funds together to create a mutual fund. There are established funds out there accepting money from investors.

Although most mutual funds have high initial investment minimums, if you dig deep enough you will find mutual funds with a low minimum investment.

Investing Small Amounts: A Path to Riches

Yes, you can turn your pennies into thousands or even millions of dollars.

As difficult as it sounds, it’s doable. Ultra-rich people like Warren Buffett started off by investing small amounts, and you can do it, too.

Armed with this guide, you’re no doubt in a better position to start investing, and well on your way to attaining financial independence.

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