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1000 dollars may not seem a lot of money to some people, but it is a good chunk of money that can generate a good return and there are good investment options for your money. If you are wondering what is the best way to invest 1,000 dollars, then you have come to the right place. In this article, I will discuss how to invest 1000 dollars.
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How To Invest 1000 Dollars:
1. How to Invest 1000 Dollars: Invest in Index Funds.
When it comes to the types of investment you can make with 1000 dollars, there are plenty. But a good safe place to invest $1000 for some return is a no-load index fund. Investment companies like Vanguard has index funds which require a $1000 minimum to start. Plus, the fee is very low. So not only will your 1000 dollars has the potential to grow, it will also reduce just how much you’re paying for interest.
If you’d like to be a more hands-on investor and pick your own individual stocks as opposed to a mutual or index funds, you can easily do so with 1000 dollars. One best way to invest $1000 in stocks is to pick good quality dividend paying stocks/companies like Starbucks, Apple or Microsoft.
Buying stocks with 1000 dollars, however, will require a brokerage account. would recommend Ally Invest for $4.99. It’s important because in order to grow your wealth, you need to make sure you keep your trading fees as low as possible.
With 1000 dollars, you can easily pick 100 or more shares of good quality stocks and generate great return on your investment.
2. Start a Blog.
Using your $1000 to start a blog is a long term investment that can generate significant amount of passive income.
If you’re interested in starting a blog with some of your $1,000, I created a step-by-step guide that will help you start a blog of your own for cheap, starting at only $3.95 per month (this low price is only through my link) for blog hosting. In addition to this low price, you will receive a free blog domain (a $15 value through my Bluehost link if you purchase at least 12 months of blog hosting.
2. Invest in Yourself.
Without question, one of the best investments you can make is an investment in yourself. With 1000 dollars, you can buy online courses to learn any subject areas that may interest you. You can go to seminars or go to conferences about businesses. With 1000 dollars, you can buy several books about investing to have a great picture of all the options available to you. Investing 1000 dollars in yourself can actually generate greater long term returns.
3. Where to Invest 1000 Dollars: High Yield Savings Account.
If you want to earn some type of interest on your money with little to no risk, then putting your 1000 dollars into a high yield savings account is the way to go. High yield savings accounts offer anywhere from 0.9 % to 1.5 % interest rates than a traditional saving account or checking account would. Sometimes there is no minimum to open an account, and if there is, the minimum is usually around $100.
4. Certificate of Deposit.
You can open a CD account with 1000 dollars, and the return is much higher than that you’d receive from a high yield savings account. However, when you put money in a CD, you cannot take it out until it matures unless you’re willing to receive a penalty. There are six-month, 1 year to 6 year-terms CDs.
5. Pay Down Debt.
You may not think it that way, but the best return you can receive is by paying off your debt. Credit card tend to carry a higher interest rate than most forms of debts. The average interest rate from credit cards can range from 18 to 22%. If you can pay off your outstanding debt with your 1000 dollars, you can save a lot of money on the interest you would have paid.
If you don’t have any debt, then consider putting that money into your 401k plan or a Roth IRA. These retirement accounts can generate good returns on your money, because your earnings grow tax free.
6. How to Invest 1000 Dollars: Contribute to your Emergency Fund.
If you have already maxed out your IRA and your employer 401k account, I’d consider putting that 1000 dollars in an emergency fund. We’d suggest you have at least 3 to 6 months worth of monthly expenses in that fund.
Get Started: How To Save For An Emergency Fund
In conclusion, 1000 dollars is a good chunk of money. You just need to know how to use it to make your money work for you. Above are great ways to invest your money.
Work with the Right Financial Advisor
You can talk to a financial advisor who can review your finances and help you save 100k (whether you need it to pay off debt, to invest, to buy a house, or plan for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.