7 Smart Ways to Invest 1000 dollars
The bad news: The $1000 in your sock drawer isn’t going to magically grow on its own.
The good news: If you’re smart with your investments, you can turn $1000 into a lot more.
While a lot of financial advisors have investing minimums, there are a few ways that you can get started on the investment ladder.
1. Online trading platforms
If you want to kickstart your portfolio and don’t mind putting in some hours reading, then an online trading platform could be a great way to put yourself to the test.
It’s going to take a solid time investment for you to look out for a platform that does what you want it to. Some starting places are TD Ameritrade or E*Trade, where you can find out how to pick the best online broker for you.
If you’re interested in picking out your own investments, take a look at exchange-traded funds or ETFs - they’re known for being low cost but still providing you with diversification benefits.
2. Lend to those in need and earn some interest
You know as well as we do that no one succeeds alone. If you want your money to do good for others while it does some good for you, then check out peer-to-peer lending.
Online resources like Lending Club let you lend to borrowers via an online service, and earn a little interest as you do it. This is a way that you can use your money to make a serious difference in somebody else’s life - while also helping yourself at the same time. Now that’s a real #moneyboost!
3. Find a robo-advisor
If you can’t see yourself spending the time and energy on investing by yourself, you might want to see what a robo-advisor can do.
A robo-advisor is automatic software designed to help manage a portfolio. You choose your investment goal, and how much risk you can handle, and just let the software do its thing.
4. Invest in your kids' college education
If you have little wonders, or you’re planning on having them, you might want to start saving for their college education now.
College tuition has been increasing by 5.2% for the past 20 years, and it looks like these costs are only going to get higher. So why not take a look at a 529 college savings plan, which can offer you some great tax advantages?
These plans vary depending on the state that you live in, so make sure you check out your state’s 529 college savings plan.
5. Pay down your debt
We know this might not quite be what you want to hear, but consider spending that $1000 on your debt.
If you’ve got credit cards, you might find that you’re paying in the double digits when it comes to your APR.
Meanwhile, if you’re investing in the stock market, you might only get a 7% or 8% return. So while it might not feel like an exciting investment, you could find yourself debt-free and able to do more by clearing your debt first.
6. Start a Roth IRA
A APR is a little-known but truly awesome investment to consider.
Essentially, you pay tax to add money to your Roth IRA - but then you get a tax break during retirement when you withdraw the money.
This is a great way to invest in your future to make sure that you’ll be able to enjoy your retirement when you get there.
When you’re looking to invest your money, it’s important that you don’t put all your eggs in one basket. After all, if you buy some stocks or shares in your favorite company, you might find yourself on a single-stock rollercoaster.
Remember...we’re talking about how to be SMART with your investments. Start making some good money habits now and you’ll find that later down the line you’ll be able to enjoy the fruits of your labor.
Investing $1,000 may feel like a lot to you now, but it can lead to even more rewards in the future. The good thing about starting now is that you’ll start reshaping the way you think about money so that you can make every penny count.
As Kwanza Jones says, “pennies make millions”! So why let any penny go to waste!
For more money boosts, check out our Millionaire Mindset group in our SUPERCHARGED Boost Friends™ community. Here, you’ll connect with like-minded next-level seekers and learn how to make your money grow instead of letting your money go.
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