6 Top Ideas to Invest in as a Beginner

Looking to make money in 2025 but not sure where to start? This beginner-friendly guide covers the 6 top investments you can dive into with little to no experience. Whether you're saving for the future or building wealth, these smart choices are tailored for new investors.

From index funds and dividend stocks to cryptocurrency and real estate, we break down each investment’s potential, risks, and benefits. Learn how to grow your money with easy-to-understand strategies that work in today's market.

Don’t miss your chance to start early and secure your financial future. Discover the best ways to make money in 2025 and turn your small savings into long-term success with these beginner investment ideas.

Table of contents

• What to invest in as a beginner?
• 1. High-Interest Savings Accounts & CDs
• 2. Index Funds (e.g., S&P 500 ETFs)
• 3. Dividend Stocks
• 4. Robo-Advisors (e.g., Betterment, Wealthfront)
• 5. REITs (Real Estate Investment Trusts)
• 6. Treasury Bonds or I-Bonds
• How much do you need to begin investing?
• Considerations to make as a beginner investor

What to invest in as a beginner?

Below are the 6 beginner friendly investments to make money in 2025.

1. High-Interest Savings Accounts & CDs

High-Interest Savings Accounts and Certificates of Deposit (CDs) are among the top investment choices for beginners looking to make money in 2025 with minimal risk. These options provide stable, predictable returns and are backed by institutions like the FDIC, making them ideal for those who are new to investing and want to protect their principal while earning interest. In a volatile economy, safety and simplicity are key advantages.

A high-interest savings account offers easy access to your money while still earning a competitive interest rate—often higher than traditional savings accounts, especially from online banks. This makes it perfect for short-term goals or building an emergency fund. CDs, on the other hand, require you to lock in your money for a set period (e.g., 6 months, 1 year, or 5 years), but they typically offer even higher interest rates in return. In 2025, as interest rates remain relatively strong, locking in a solid rate with a CD can help your money grow safely.

For beginners who want to make money in 2025 without the stress of market fluctuations, High-Interest Savings Accounts and CDs provide peace of mind and consistent growth. They’re not flashy or high-reward like stocks or crypto, but they’re a smart foundation for any financial strategy—especially if you're just starting your investing journey. Once your base is secure, you can explore higher-risk options with more confidence.

2. Index Funds (e.g., S&P 500 ETFs)

Index Funds (e.g., S&P 500 ETFs) are widely considered one of the top investments for beginners who want to make money in 2025 and beyond. These funds track a market index—like the S&P 500—which represents a broad slice of the stock market, including some of the most successful companies in the U.S. Instead of trying to pick individual stocks, index funds give you instant diversification, reducing risk while capturing the average market return.

What makes index funds especially appealing for new investors is their low cost, simplicity, and consistent performance over time. S&P 500 ETFs like VOO or SPY typically have very low fees, which means more of your money stays invested and compounds over time. Historically, the S&P 500 has delivered average annual returns of around 7–10% after inflation, making it a reliable option for anyone looking to make money in 2025 without the stress of timing the market or studying financial charts daily.

With just a few dollars, beginners can start investing through platforms that offer fractional shares or automated investing (like robo-advisors). The long-term strategy behind index fund investing is simple: stay invested, add consistently, and let the market work for you. It’s a smart, low-maintenance way to build wealth steadily and confidently as a first-time investor in today’s evolving financial landscape.

3. Dividend Stocks

Dividend stocks are one of the best investments for beginners looking to make money in 2025 because they offer a reliable way to earn passive income while also building long-term wealth. Unlike growth stocks that rely solely on share price appreciation, dividend stocks pay you a portion of the company’s earnings regularly—typically quarterly. This means you start receiving returns almost immediately, which can be reinvested to grow your portfolio faster through compounding.

Another reason dividend stocks are beginner-friendly is their stability. Most dividend-paying companies are well-established and financially sound, operating in sectors like utilities, healthcare, or consumer goods. These businesses tend to be less volatile during market downturns, offering some protection to new investors. So, if you're aiming to make money in 2025 without taking excessive risks, dividend stocks provide a more predictable and steady path.

Moreover, many platforms now allow you to invest in fractional shares, making it easier than ever to own a piece of top dividend-paying companies with just a few dollars. By consistently investing and reinvesting dividends, beginners can steadily build income over time—even with small amounts. As a result, dividend stocks are not just a smart move for 2025, but a foundation for long-term financial growth.

4. Robo-Advisors (e.g., Betterment, Wealthfront)

Robo-advisors like Betterment and Wealthfront are among the top investment options for beginners looking to make money in 2025 because they offer automated, low-cost, and diversified investing without requiring deep financial knowledge. These platforms use algorithms to build and manage your portfolio based on your goals, risk tolerance, and timeline. This removes the complexity and emotional decision-making that often trips up new investors.

One of the biggest advantages is accessibility. With low minimum investments—sometimes as little as $10—anyone can start investing. Robo-advisors automatically rebalance your portfolio and reinvest dividends, helping your money grow consistently. This is a huge benefit for beginners who want to make money in 2025 but don’t have the time or expertise to track markets daily. They also offer tax-loss harvesting, which can improve your returns by reducing the taxes you pay on investment gains.

For anyone starting their financial journey, robo-advisors strike the perfect balance between convenience, affordability, and long-term growth. As the investing landscape becomes more tech-driven in 2025, using a robo-advisor ensures you're leveraging smart technology to maximize your returns while minimizing effort. It’s one of the smartest, simplest ways to make money in 2025 without getting overwhelmed by investing jargon or market volatility.

5. REITs (Real Estate Investment Trusts)

Real Estate Investment Trusts (REITs) are one of the top investment options for beginners aiming to make money in 2025. REITs allow you to invest in real estate without the hassle of buying, managing, or maintaining physical properties. They pool money from multiple investors to own and operate income-producing real estate, such as apartment complexes, shopping malls, office buildings, and more. This makes REITs a great way to tap into the real estate market with low capital and reduced risk.

What makes REITs especially appealing for beginners is their potential for consistent income. By law, REITs are required to distribute at least 90% of their taxable income to shareholders in the form of dividends. This can provide a steady cash flow, even in uncertain economic conditions. In a year like 2025, where many investors are seeking reliable passive income streams, REITs offer a compelling balance of growth and stability—perfect for those still learning the ropes.

Additionally, REITs are traded on major stock exchanges, making them highly liquid compared to traditional real estate investments. You can buy or sell shares just like any other stock, often with low fees and minimal effort. With the right strategy, REITs can be a powerful part of a diversified portfolio, offering a practical way to make money in 2025 without needing expert knowledge or large upfront costs.

6. Treasury Bonds or I-Bonds

If you're new to investing and want a secure, low-risk way to make money in 2025, Treasury Bonds and I-Bonds are excellent options. Backed by the U.S. government, these bonds are considered virtually risk-free, making them ideal for beginners who want to protect their money while earning steady returns. Unlike volatile assets like crypto or stocks, bonds offer predictable interest payments and guaranteed principal repayment at maturity.

I-Bonds are especially attractive in times of high inflation. They offer a combination of a fixed interest rate and an inflation-adjusted rate, helping your investment keep pace with rising prices. In 2025, as inflation continues to influence markets, I-Bonds are one of the few options that automatically adjust to protect your purchasing power. You can buy them directly from TreasuryDirect.gov with as little as $25, making them highly accessible for first-time investors.

Treasury Bonds, on the other hand, provide a longer-term investment opportunity, often with maturities ranging from 10 to 30 years. While their returns are typically lower than stocks, their stability makes them a dependable way to make money in 2025 without unnecessary risk. Whether you're building an emergency fund or saving for the future, these government-backed bonds offer peace of mind and consistent growth—a smart starting point for any beginner investor.

How much do you need to begin investing?

You don’t need a lot of money to start investing—what matters more is consistency and a clear goal. Thanks to modern technology and accessible platforms, you can begin investing with as little as $5 to $100, especially through apps that offer fractional shares or micro-investing. Many robo-advisors and brokerage firms have removed minimum balance requirements, making it easier than ever to get started even with a tight budget.

For a more structured approach, having $500 to $1,000 gives you a solid foundation. This amount allows for better diversification across different asset classes—like index funds, ETFs, or even REITs—without exposing yourself to too much risk in any one area. With this range, you can create a beginner portfolio that balances growth and safety, especially if your goal is to make money in 2025 and beyond through long-term, passive strategies.

If you're aiming to grow your wealth more aggressively or generate income, consider scaling up to $5,000 or more over time. This opens the door to more options like dividend stocks, I-Bonds, and real estate platforms. But even if you're starting small, the key is to start now and stay consistent—investing a little each month can compound significantly over time. The earlier you start, the more time your money has to grow, which is essential for long-term financial success.

Considerations to make as a beginner investor

Before you start investing, one of the most important things to consider is your financial foundation. This includes having an emergency fund (typically 3–6 months of living expenses), being free of high-interest debt (like credit cards), and having a clear budget. Investing before stabilizing your financial base can lead to unnecessary stress or force you to withdraw money at a loss during emergencies. Make sure you only invest money you won’t need in the short term.

Next, you need to clearly define your investment goals, time horizon, and risk tolerance. Are you investing for retirement, buying a home, or building wealth over time? Short-term goals (under 3 years) require safer, more liquid investments like bonds or high-yield savings. Long-term goals (10+ years) allow you to take on more risk through stocks or real estate. Your comfort with volatility plays a big role here—understanding how much fluctuation you can emotionally and financially handle is key to staying consistent.

Finally, consider the type of investment account that aligns with your goals and tax situation. For example, tax-advantaged accounts like Roth IRAs or 401(k)s are great for retirement, while a standard brokerage account offers flexibility for general investing. Also, think about whether you want to manage your investments yourself (DIY) or use tools like robo-advisors or financial planners. The more informed your decisions, the more confidently you'll be able to grow your money over time.