What is the best way to invest $200 a month in 2011? Best investments for small amounts of money in 2011.

This is a very easy question and I’m so glad you’ve asked it. The best way to invest $200 a month in 2011 or in any year is to pay off your debt with it. Take your $200 each month and pay down your debt until there is none left. It would be the best investment anyone could ever make.

Of course, I’m assuming you have debt. If not, or at such time as you have paid it all off, the next best investment is the one that generates the best return with the least amount of risk. Remember that the lowest risk is the priority in 2011 with the economy as bad as it is and world events conspiring to make fools of investors in general. So, start by finding low-risk investments and then choose the one that offers the best return. In 2011 it could be as simple as an annuity or a government bond. Municipal, tax-free bonds are always safe and generate a relatively high return (especially when you factor in the “tax free” premium). Do some research. Treasury securities are also a good bet. But the emphasis is on low-risk in 2011.

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