If you’re working with limited capital, like me, you’ve probably realized $500/month doesn’t go as far as it used to. But here’s the thing: you don’t need thousands to start building wealth. You just need to be intentional, consistent, and smart about where your money goes.

So here’s a breakdown of where I’m investing in 2025 with under $500/month, and just as importantly, what I’m avoiding to stay sane and focused.

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1. Stocks Over Index Funds or Bonds

I know everyone preaches index funds for “safe” returns and yeah, they work. But I’m playing the long game, and I believe tech stocks will absolutely skyrocket over the next decade. AI, software, cloud, chips. This stuff isn’t slowing down.

That’s why I’ve chosen to put most of my stock investments into individual companies I believe in, instead of settling for the average return of an index fund. Bonds? Not even on my radar, not enough upside, especially when I’m young and have time.

I use Robinhood for all my stock investing. Easy to use, commission-free, and lets me keep track of everything in one place.

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2. Crypto + Staking on Robinhood

Crypto is still part of my strategy, and yes, it’s risky, but the upside is real. I’m investing in BTC, ETH, and Solana, and I’ve been using a basic DCA (dollar-cost averaging) strategy, putting in a little consistently over time.

Here’s the crazy part: by just DCA-ing this past year, I’ve hit a 30.82% return. No trading, no stress, just letting the market do its thing.

Also, Robinhood now lets you stake ETH and Solana directly in the app.

Staking basically means locking up your crypto so the network can use it to validate transactions, and in return, you earn passive rewards (kind of like interest). Super easy way to let your crypto work for you without lifting a finger.

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3. Startups via Fundrise

This one is my wildcard. I’ve started investing in startups, especially tech ones, through Fundrise. The cool part? You don’t need to be rich. I’m putting in around $20/week, and it’s helping me get exposure to companies that could blow up in 5–10 years.

Startups are risky, but the upside is massive, and platforms like Fundrise let you diversify into multiple projects with very low entry points.

I like it more than real estate right now, which brings me to…

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What I’m Avoiding

1. Real Estate

Unless you’ve got a lot of upfront capital, real estate doesn’t offer the kind of leverage most people think. Between high interest rates, down payments, and maintenance costs, it’s not ideal when you’re working with under $500/month. Plus, I don’t want to be a landlord. Not now.

2. High-Yield Savings Accounts (HYSA)

Sure, they’re better than regular savings accounts, but you’re still earning what? 4% a year? Unless you’ve got $10K+ sitting there, it’s not moving the needle much. I’m parking a little cash for emergencies, but beyond that, I’d rather invest for actual growth.

3. Options & Day Trading

Let’s be real. Most people who trade options or try to time the market end up losing money. I’m not here to gamble. I’m here to build real wealth. And unless you really know what you’re doing (and most don’t), it’s just not worth the stress.

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Final Thoughts

If you’ve only got a few hundred bucks a month to invest, don’t waste it chasing hype or trying to “hack” your way to success. Focus on real assets, stay consistent, and choose things with long-term upside.

• Stocks give me growth (and passive income via dividends).
• Crypto gives me upside and passive income.
• Startups give me exposure to big wins.

And best of all, I’m doing it all under $500/month. You can honestly start with an even lower amount.

Start small, stay consistent, and watch what happens over time. FIRE isn’t about how much you make, it’s about how well you move.

Let’s keep building.

If you’d like to budget and save an extra $100 without depriving yourself, then check out Why Most Budgeting Advice is Trash (Here’s What Works)