I don't know how much $500 is to you personally, but I do know it's a lot of money to many people.

According to research by The Motley Fool, the median annual family income in the U.S. was almost $70,000 in 2021, which works out to about $5,800 per month. Let's say the median family saved 10% of monthly income for investing in stocks -- a percentage worthy of applause. For such a money-smart family, $500 would almost be an entire monthly investment.

With this in mind, I'm treating a $500 investment as one whole position in a diversified portfolio -- if you invest the Motley Fool way, you'll be looking to build a portfolio of at least 25 companies. And buying stocks during a pullback like right now (the S&P 500 is down 17% from its all-time high) is a great time to do it.

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Source Fool.com