Is it possible to invest with a one-thousand dollars? Many ambitious people who want to get ahead, wonder if this is a viable option. Some people just happen to have $1000 dollars sitting around that they do not know what to do with. Others want to get started investing long-term and wonder if $1000 is enough to get started. The simple answer is that is definitely possible to invest $1000. Whether you are looking for something practical, or for something a little outside the box.
1. Investment Apps
This is by far the easiest way for complete beginners to invest, as several robo-investing applications vastly simplify the process. Mobile apps, such as Betterment and Acorns, do most of the work for you and make it possible to invest with as little as $5. Acorns automatically rounds up any spending you do on your debit (or credit) card to the nearest dollar. Once a certain amount is accumulated, that money is then withdrawn from your bank account and deposited into the app. Betterment does not have this feature but still makes the process of investing quite accessible. I will further explore these apps in future posts for those that are interested.
2. High-Yield Savings Account
This may seem a little counterproductive but let’s be real here: $1000 is not a lot of money to invest with. If you are hoping to make a noticeable profit, you will not be able to do so with a small amount. Or rather, that is the case when it comes to traditional types of investing. That is why investing in other unique ways may be a better option. I will cover this shortly.
However these methods will require short-term planning, and if you are trying to insure your money maintains its value in a safe place, then High-Yield Savings Accounts such as Ally.com are the way to go. These are excellent ways to save money, as their return rates of about 2% keep up with inflation, and these are still legitimate banks so your dollars are safe and insured.
3. Small Business
If you really want to invest and multiply your $1000 into several times its value, than this is easily the superior option. Starting a small business offers the most potential income, but requires more work,as well as time, in order to succeed. However, if you have been wanting to try a new project such as a YouTube channel, a blog, or any other accessible idea, $1000 gives you a lot to work with. It is a more than enough in order to invest in new equipment such as a camera, a laptop, video editing software, etc. If you want to start a blog, you can buy hosting and domain services.
This does not necessarily have to be an online business either, you could easily invest in getting physical supplies for some kind of service-based business as well. For example, cleaning supplies for a small home-cleaning service.
Although small businesses are often seen as traditional brick-and-mortar stores that require much more investment, there are virtually limitless ideas that can be started with next to nothing. I will cover potential businesses that can be started with $1000 or less, so stay tuned if that is something you are interested in.
4. High-Interest Debt
This honestly should have been much placed much higher on this list, because it is such a no-brainer. This is because any money spent on reducing high-interest debt, such as credit card debt, is a guaranteed return on investment! Do not make the mistake of investing in stocks before paying off any high-interest debt, as you will very likely be losing money anyway due to interest.
When it comes to other types of debt, such as student loans, a mortgage, or car payments than it is a matter of personal preference. Some real estate investors prefer to carefully manage their mortgages(s) while investing their profits, while others prefer the peace of mind of owning a property outright.
5. College Classes/Online Courses/Education
Whether you think college is a scam, or an essential part of a young adult’s life, there is no denying that some college classes can provide tremendous value and knowledge, depending on what you are looking for. With $1000 you can easily afford a class or two at your local community college.
Want to work on your presentation skills? Take a public speaking class. Want to learn basic accounting skills? There is probably a class for that too. Want to learn how to code? There are classes for that as well. Granted you could learn almost anything online for free if you really want to do so, but something about a classroom environment gives students the edge needed to excel.
Or you can always go the online route. Websites such as Lynda, Skillshare, and Udemy make it convenient to learn from the comfort of your own home, at affordable prices. The type of skills offered from these websites range from graphic design, to web development, to marketing.
Lastly, books are an excellent source of knowledge, provided the right books are chosen. I will be adding a recommended reading list to this website for those that are interested.
6. Wealthfront
Have you always wanted to get started investing in real-estate, but simply do not have the capital and skill required to begin? Wealthfront, is an investment platform, that allows you to invest in a piece of real estate. Similar to the investment apps mentioned earlier, Wealthfront allows you to invest with $1000 or less, in straightforward process.
Be advised, however, that your money is not as liquid when tied to real estate, and this applies to Wealthfront as well. I will cover this platform in more detail, in the near future so stay tuned for that.
There you have it, I hope you learned something from this article and if you have any other ideas, feel free to share it in the comments section.