One thousand dollars is a significant amount of money that can seriously help increase your net worth. If you are able to invest it in one of the options below, then you are off to a good start.
When I started saving up, I didn’t know what my options were other than putting it into a savings account. After a while, I was able to see that my money can work for me and help me make more in the long run. Do you want to learn how to make even more money by investing what you have? Here are 7 unique ideas for investing money wisely!
1. Rainy day funds
Having a three-to-six-month emergency fund is a necessity. It is very helpful in the event that you lose your job and struggle to find a new one. Speaking from experience, it is always very helpful to have a decent amount in savings when unexpected expenses show up because trust —they always do.
Money stress is the real deal. This little nest egg will help relieve some of that stress. You can always keep more than six months of expenses in your rainy day fund, but this isn’t always feasible, so just do whatever you can to suit your own money needs. Just remember that rainy day funds are an investment in your financial future as well as your mental health.
2. Stocks, bonds, and ETFs
Billions and billions of dollars have been made in the stock market, making it a great way to invest 1,000 dollars. It could potentially become 2,000 dollars in a year’s time, but it could also drop down to only 500 dollars by then, too.
There are multiple different methods of buying and selling pieces of the stock market. Make sure to do all of your research before you end up investing even a penny, though. There are many different websites and articles out there that can help you understand the different types of investment plans.
There is great potential to make money in stocks. There are thousands of different funds to choose from, too. MoneyLion actually has a fully-managed investment account that offers effortless investing options. From ETFs and mutual funds, to the auto-invest feature, MoneyLion has a lot of free financial advice to offer.
3. Real estate
Real estate has a very high price of entry, which is why Fundrise was created. It comes with a low barrier of entry with a minimum of $500, which is excellent for anyone who cannot afford to put at least 10% down on a new property.
This market has been very lucrative because people will always need a place to sleep. No matter the circumstances or how expensive it is, people always need a roof over their head at night. Historically speaking, real estate has had an excellent return on investment. This is something that you should look into once you have $1,000 to invest.
Self-education is more important than all of us realize. If we are able to educate ourselves in one specific area and become an expert, then we’d be set for the rest of our lives. Education gives you a better chance of landing a great job, which is when the learning really begins. A good paying job will further expand your educational opportunities, creating a trickle effect from there.
Many professionals have created educational courses and uploaded them all over the internet. Some of them are free while others are not. You can always take the route of buying educational reading material and learning it the old school way.
A bachelor’s degree will cost you a decent amount of money. You might even need to take out a loan to pay for it, but it’s an amazing investment when done properly. One thousand dollars can buy you a lot of educational material, so this is definitely something worth looking into.
Cryptocurrency is the hottest new thing. Some people say that you should plan on losing all of your money that you put into it though, but don’t let that scare you. Cryptocurrency is very volatile, meaning the values go up and down very drastically in short periods of time.
While it is not the same as the traditional stock market, cryptocurrency is still a viable investing option. Since this is such a new concept, you will need to be very careful about which crypto you put your money into.
It can potentially be very lucrative, or it could wipe out the whole $1,000. There are a lot of different applications to buy cryptocurrencies with, and there are even more different types of cryptocurrencies. Make sure that you do your research before buying something this risky.
This does not mean that you should expect to lose all of your money. A lot of people have become millionaires by investing in cryptocurrencies, but it’s best to be safe.
6. Financial tracking
A large percentage of the population spends more money than they make. I’ve been there before. It is a rut that is very difficult to get out of, but there are multiple ways that make it easier.
Financial spending applications are fantastic tools to use. Spend some of your $1,000 using these different software applications to really watch what you are spending your money on and where you spend the most. This will help you realize where you need to cut some of your spending. Feel free to check out this article we wrote on how to stop spending money.
Financial tracking can put more money in your pocket in the long run. It might even give you more than $1,000!
7. 529 savings plans
You’re likely going to want to pay for your kids’ college in the future. With 529 saving plans, you are able to set up accounts that are specific to future education costs. These tax-advantage plans are a great savings option for kids.
The question of, “What happens if my child doesn’t go to college?” may come up. If your child doesn’t enroll in college, you can always change the beneficiary of the account since you are the one who opened it. The money isn’t stuck in the account if your child’s educational plans change.
Investments are called investments for a reason
The best way to invest $1,000 is up to you at the end of the day. There are upsides and downsides to every investment, which is why they are called investments in the first place. Be careful where you decide to put your $1,000 as you may never see it again.
If you make the smart moves, you can even double your money! There are many different ways to invest your money for a better outcome than just the $1,000. Go ahead and check out RoarMoney to help get your financial future back on track.