Seven Smart Money Moves to Make With $500

Tax refund? Gift from a relative? Unexpected work bonus?  If you’ve got an extra $500 in your pocket, that’s more than enough to kickstart your next financial win—whether it’s paying down debt, building a safety net, or planting the seeds for long-term growth.

Not sure where to begin? You’re not alone. The good news: making progress towards financial goals doesn’t require a perfect plan or a ton of time. With a little strategy and a few smart decisions, that $500 can start working for you today—and set the stage for even bigger gains down the road.

Here are seven simple strategies to help you grow your money and move closer to your goals.

Pay off any high-interest debt to save on charges.

One of the fastest ways to improve your financial situation is to use that $500 to pay down high-interest debt. Credit card rates are often steep, sometimes topping 20%. Paying down that balance now means you’ll owe less interest tomorrow—and have more cash available sooner than you think. It can also relieve financial pressure, making room for future savings or investments.

For example, if you owe $1,000 on a credit card with 20% interest, using $500 to pay it off will cut your interest in half and help you reduce debt. Want to see how much you’ll save? Try our Credit Card Payment Calculator and watch how fast your debt can shrink.

Consolidate Debt on Lower Payments

Carrying multiple debts with different due dates, interest rates, and balances? It can get messy, and if you slip up and miss a deadline, it can get expensive. But there’s a smart way to take control: consolidate. Consolidating into one loan could reduce your rate, simplify your finances, and give your monthly budget some breathing room. Curious how much you could actually save? Try our Debt Consolidation Calculator for a quick estimate.

Even using just $500, you can start knocking down your balances and make debt easier to manage. Pay a chunk off now, then look into consolidating the rest. It’s a great way to create breathing room in your budget, so you can focus on bigger goals.

And if you're looking for a place to grow your savings while staying flexible, consider a Money Market Account. It offers higher interest than standard savings and gives you easy access to your funds.

While you’re at it, think about upgrading your checking account. A CSCU checking account can help you manage your money more efficiently with fewer fees and smarter features.

Launch a Side Hustle

A side hustle is a great way to put your $500 to work and earn extra income. Even a few hundred bucks can help you test an idea—and possibly grow it into a steady cash stream. In fact, around one-third (36%) of U.S. adults already have a side hustle, according to Bankrate, and it’s easy to see why: low startup costs, flexible hours, and real earning potential.

Popular options include lawn care services, pet sitting in your neighborhood, selling homemade crafts or baked goods at local markets, or offering tutoring in subjects you know well.

Here are a few additional ideas:

A.   Resell products you don’t use anymore. Platforms like eBay, Poshmark, depop, or Facebook Marketplace are great for buying and selling items for profit. You can often find gently used products at thrift stores or clearance sales that are of much more value!

B.   Create a blog or YouTube channel. Starting a blog or YouTube channel can offer long-term rewards with minimal upfront costs. If you build an audience, you could monetize through ads, sponsorships, and marketing.

C.   If you have skills like writing, graphic design or web development, consider offering your services on freelancing platforms like Fiverr or Upwork.

Invest In Dividend Stocks or High-Yield ETFs

If you are looking to grow your wealth with a Wall Street angle, investing in dividend-paying stocks or exchange-traded funds (ETFs) can be a great way to generate income. Dividend stocks pay shareholders, who can then reinvest the dividends to help their money grow even more.

High-yield ETFs are similar but have a diversified portfolio of dividend-paying stocks. They provide a balanced way to invest with less risk than individual stocks. With $500, you could start small and build your portfolio over time.

Feeling intimidated by investing? Let robo-advisors do the heavy lifting—they’ll match investments to your risk level and long-term goals. Though investments always carry some risk, they also have long-term rewards that can be substantial. 

If you are less risky and want a stable and guaranteed return, you might want to consider other options, including CDs, High-Yield Savings accounts, and Money Market accounts.

Invest In A Certificate of Deposit (CDs)

If you don’t need to access your money immediately, a Certificate of Deposit (CD) could be a good choice. CDs often offer some of the highest interest rates out there and your money is guaranteed to grow at a fixed rate over time.

The trade-off is that your money is locked in the CD for a set period of time. If you are okay with not having access to your funds for a few months or years, a CD is a great way to grow your $500. Visit CSCU’s Certificate of Deposit options to learn more about how a CD can help you earn more with your money.

Open A High-Yield Savings Account (HYSA)

If you want to grow that $500 without taking risks, a High-Yield Savings Account (HYSV) is a solid option. HYSAs offer higher interest rates compared to traditional savings accounts and allow for your money to grow faster.

HYSAs are great for emergency savings or short-term goals. Even $500 is a great start for an emergency fund—and you’ll earn more interest without risking your principal. To maximize your growth, consider opening a high-yield savings account with CSCU. Compare rates here to see how much you can earn.

Try a Money Market Account (MMA)

A Money Market Account (MMA) is great if you want a higher interest rate than your savings account, but still want to access your money easily. MMAs offer better rates than regular savings accounts and could offer check-writing and debit card access.

While MMAs have some restrictions on withdrawals, they are often more flexible, allowing you $500 to grow quickly. Learn more about CSCU’s Money Market Account options here.

Make Your Money Work For You

Whether you're wiping out high-interest debt, launching a side hustle, or investing for the future, $500 can go further than you think. Every purposeful decision you make today brings you closer to financial freedom tomorrow. The key is to stop letting your money sit idle and start putting it to work.

Ready to take the first step? Open a high-yield savings account, CD, or money market account and watch your balance grow effortlessly. Compare top rates now and start earning more!

Ps: Want to get paid to learn how to better manage and understand your finances? Check out ZOGO, our free learning app designed to help you improve your financial literacy and learn how money works in real life. Learn more about leveling up your knowledge here.