Money Expert's Guide for Beginners on How To Invest $1,000 in 2026
Do you have all your money parked in a bank account -- and are you finally ready to start putting it to work? Or maybe you just began your career and can invest for the first time. Whatever your starting point is, we've gathered advice from money expert Humphrey Yang to help you take that first step.
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So, if you're a beginner investor with $1,000, here's where Yang recommends putting your money with a long-term investing strategy in mind.
$400 in an S&P 500 ETF
Right off the bat, Yang says to put $400, or about 40% of the money you plan to invest, into an S&P 500 ETF.
What's an ETF? Many people think that to invest in the stock market, you need to buy individual companies' stocks, but that's not the case. Exchange-traded funds, or ETFs, are bundles of different stocks and bonds pooled together into a single fund. When you buy shares of an ETF, you are investing in multiple companies at once.
An S&P 500 ETF is a collection of the top 500 companies in the United States. Think Microsoft, Walmart or JP Morgan Chase. With your money in one of these funds, you have broad market exposure with a historically high rate of return. Common ones to consider are VOO, SPY, or IVV.
$200 in QQQ ETF
The next thing you're going to want to do is buy $200 worth of shares in the QQQ ETF, which invests in the NASDAQ 100. The NASDAQ 100 is a stock market index composed of the 100 largest non-financial companies, such as Google, Apple and Nvidia.
QQQ has returned more than 95% over the past nine years. If it trends the same way in the future, you can watch your money work for you in a big way.
$300 in Individual Stocks
After you've bought your shares in ETFs, now you can have some fun and spend $300 or a smaller portion of your funds' worth on individual stocks. Pick three companies and invest $100 in each of them. Don't go crazy, though, as there is always a risk of losing what you put in.
Avoid buying penny or meme stocks. Yang advises sticking to companies likely to be around for the next 40 years, such as Apple or Google. Do your research and invest in reliable companies.
$100 in High-Yield Savings Account
Finally, Yang recommends allocating the remaining funds to a high-yield savings account for future opportunities. These accounts tend to pay higher interest rates than a typical bank savings account, so you make more in interest while keeping your money safe. Some institutions that offer higher-yield savings accounts are Barclays, Capital One and SoFi.
If 2026 is your first year investing, Yang's advice is a beginner-friendly place to start with as little as $1,000.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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