15 Smart Ways to Invest $1,000
If you have planned to ‘invest’ your money in any project instead of spending then, you are already on the right playing field because now you can easily generate some return from your investment till the project reaches its maturity or until the end of the term.Learn 15 Smart Ways to Invest $1000 in this complete guide.
Stuff to Remember:
Starting any business or investing money isn’t about how huge amount you are pouring into the project but it’s more about learning the tactics of investment and how each portion of the money should be allocated for generating revenues.
For new investors, it would be difficult to survive successfully during the initial stages due to the presence of risk element and continuous changes but keep going is the key to success.
Few Ways to Invest which can help you in successful investment are as follows:
Before entering into any project, you should acquire proper knowledge about the following factors
- Its functions
- Money generation process
- Anticipated maturity
- Expected return cycle
- The risk associated with the project.
Through the above information, you can check whether the selected market is the perfect fit for you or not.
Competitor analysis is the technique of identifying your share in the market. This process will help you in analyzing the strategies your competitor is following for making higher returns and how you can work harder for increasing your own share.
Ways to Invest $1000
All of the Ways to invest plans stated in the section below will help in generating higher yield and learning the basics of the investment market.
Open a Market Account
Market accounts are just like the traditional bank accounts but they offer a higher yield than the current saving accounts. They are the smaller investment accounts where an investor would be able to acquire a fixed amount of money on monthly basis.
Benefits of Market Account:
- Only a smaller sum of money is required to initiate the opening. ($500 to $1000)
- Investment with zero risks. It means you will never lose your principal amount
- You can make higher profits during the changes in the market economy (interest rate fluctuations)
How to Open Market Account?
Before opening a market account you need to search for the best commercial bank which is offering competitive interest rates. Don’t select the bank just based on recommendations, do the proper survey because better rates means higher profit
- Decide the deposit amount you want to invest (Range $500-$1000)
- Fill in the required forms for opening the account
- Transfer the initial amount to your new market account
- Decide the profit cycle
- Wait for the next month to earn your first earning.
Go for Index Funds
An index fund is the sub-category of the mutual funds, where investments are pooled and aligned to the portfolio of the market index. The common market indexes which are analyzed in Index funds are standard and poor 500 indexes.
Through invest in the index funds, you can easily earn a significant sum of money without involving any broker in the process.
Benefits of Index Funds
- Low investment in the operating cost (maintenance expenses)
- Very low costing which means you can start the funding with $1000
- Lower chances of portfolio turnover
- More exposure chances for the new investors
- The performance of S&P 500 is usually on a par
- Aims to outperform the traditional mutual funds in the long run.
How to buy Index Funds
- Look out for the firm which deals with the ETF (Exchange-Traded funds) and opens your account with the stockbrokers
- Get consultation from the brokers and start investing in the FTSE index because the number of companies in FTSE is smaller in size
- Decide whether you want to go for merger or not (wants to stay domestic or go for international funds)
- Decide the percentage of bonds you want to receive
- Go for portfolio selection.
Invest in your Future
What could be better than investing $1000 in your future? There are multiple ways through which you can prepare yourself for the upcoming monetary challenges in the life and the best way is called as the investment in your own retirement plan.
Traditionally there two retirement plans:
- Employed Based Retirement plan
- Self-initiated retirement plan
The investment in any of the retirement plan can easily help you in securing your future and earning a certain amount of interest when the plan reaches its maturity.
The investment plan can be as low as 1% and can be as high as 20%. Additionally, through this investment, you will be getting the tax benefits, which means you are not supposed to pay any sort of amount on the interest you are legally generating from the retirement plan.
It is better to go for ROTH retirement plan as they are non-taxable and convenient for the employees.
How to Invest?
- Contact your organization treasury and enquire about the retirement plan requirements
- Start your investment plan and make the agreement for no withdrawal till you reach the age of 60.
- Invest the money and make your future brighter.
Join the Lending Squad
If you are not a risk taker but a helper than lending money and helping people in need is the best investing option for you.
There are a number of the peer-to-peer lending platforms where you can easily give your money to those who are in need and in return you will be getting the yield in terms of profit.
These lending clubs work just like the traditional commercial banks without involving the legal authorities.
- Easiest way of making money by helping others
- Higher profit chances in the form of Return on Investment
- Secure and less-risker way of trading money
- Before investing you can ask for the portfolio of the loan taker
- Highly user-friendly platform for the beginners
How does it work?
- You can start working with the lending squad by making your account on websites likes (Lending Club)
- There are three parties involved in the transaction. The lender, middle party (web bank which ensures the security) and borrower who contacts the web bank for taking the money
- The process of investing is secure, however, for establishing the account you might need to show the backup which is the disadvantage associated with the program.
Ways to Invest in Mutual Funds
Mutual funds are the form of investment in which you need to set up an account with the brokers and get yourself registered with the mutual funds dealing company.
How does it work?
In this investment form, you need to show the account balance to the dealing company, which align the requirements and match the portfolio of the mutual groups. Through this way, the investment will be traded into the stock market and profit will be mutually distributed amongst the pooling group.
- Long-term investment and doubling chances with lesser principle cost
- Risk will be faced by the entire group thus reducing the chances of individual shocks
- Authentic investment option.
- Actively trading option for the experienced people.
Earn Money through Dividends
If you are interested in investing money in the companies with the option of continuous contribution then, you should go for the dividends.
How does it Work?
The dividend is the specific amount of money paid by the companies to its investors either on the quarterly basis or annual basis. The terms of Dividends are little technical because the company might not pay you dividend one month because of the increased demand for construction or any other developmental purposes.
However, if you know about the technical elements of dividends then, investing $1000 in this sector can help you in accumulating the good sum of money over the longer period of time.
Individual stocks are the traditional stocks which investors buy from the brokers in the market. If you are a risk-bearer and think that you can make good money by playing with the market trends then, you can easily dedicate your $1000 to the individual stocks
- Involves the huge amount of risk
- Can be profitable if traded properly
- Loss of principal amount in case of failure.
Buy Fractional Shares
Fractional shares are the sub-category of dividends which are being paid by the companies operating in the market. These types of shares are less riskier in nature because they allow you to earn the significant sum of money on the continuous basis.
Through this type of investment, you get the chance of increasing your share in the company thus leading to the higher profitability in the future.
Start your Own Business
If you like to be your own boss then, there is no better option than starting your own business with $1000. You must be thinking that investment of $1000 won’t be able to give you a higher return.
Well, you are right but don’t forget that starting a successful business is not about investment, it’s more about tactics, strategies and being innovative.
How to start the Business?
- Look around and see what are the current problems in the area you are living.
- Once you have identified the problem, find the effective solution which you think would be the best option.
- Establish the solution, invest money and start your business.
- Additionally, you can also go for establishing the online business with minimum possible cost or starting the home business such as home cooking class, delivery services, and makeup studio.
Join Hands with Online Brokers
Online brokers are the people who have knowledge about the stock market and they know the upcoming trends. You can join hands with the online brokers with the minimum investment of $1000.
Online brokers are the best because they offer you the leverage of opening the account with the minimum amount of $500.
How to start?
- You can make money on the monthly basis based on your investment
- No initial or backup capital is required for opening the account
- The money can also be transferred online thus reducing the transit cost or charges
- Long-term investment with low initial capital.
Hire a Robo-Advisor
Since the trend of investment is changing in the market, therefore, it has become equally important to take the services of those people who are capable of managing the money and investing it in the right direction.
Robo-advisors are basically the fund managers who aim to invest your money in the business and then plan the strategies for gaining the return on investment.
If you can’t take a lot of risks plus it is also difficult for you to invest the money right then, you should plan to make the investment with the robo-advisor and empower them to make money on the behalf of you.
Free yourself from Debt
The wise person is the one who knows that clearing debt is more important than investing money and generating returns.
If you have got $1000 then, you should plan to free yourself from the debt. Though you won’t be able to get any sort of monetary return from this step, however, you will be gaining satisfaction and comfort.
So now it’s your decision whether you want to invest just for the sake of gaining money or you want to invest in order to get rid of the debt.
Go for High-yield Treasury Funds
If you are good with the money management business and you can also bear the risk while taking the consent of the legal authorities then, you should plan to dedicate your $1000 to the treasury funds.
These funds are usually legal in nature and you can buy them from the national/central bank of your country. These funds are traded on the basis market fluctuations but are free from the chances of principal loss. The treasury bonds are at the risk if you sell them before the completion of the maturity period.
Through this type of investment, you can easily earn the return on transaction basis when your bond is within the maturity.
Invest in your Skills
Always remember that you would only be able to gain success in your life with the right skills. If you have the skills then, nothing in this world could stop you from achieving your dreams
If you have earned $1000 then, it’s time to improve yourself and gain the return in the form of intrinsic benefits. Through this investment, you might not be able to gain the monetary perks but you would surely be able to make yourself better.
How to start?
- Identify your skills. Analyze whether you are writer, marketers, business person, recruiter or artist
- Select the right platform for yourself and invest $1000 in developing your skill
- Start exploring new forums and shortly you will be able to make a good sum of money in the form of return.
Work on Partnership
The partnership is the business sub-category where two or more people pool their skills and money for increasing the growth of the business.
Legally for becoming a partner, you don’t need to have a huge investment amount. If you are faced with the financial constraints then, you can start the partnership by working on the dual basis.
Working Partner with Capital Investment:
According to the law, they are the people with lower capital investment of $1000 and higher activation in the business. As a partner, you will be getting a return based on your participation in the business and the capital investment.
So the harder you work, the better you get.
How to start?
- Lookout for the companies who are looking for the partners (You can find by using your PR)
- Decide the business terms and your level of participation in the business
- Decide your profit terms (Fixed or on the basis of participation)
- Start getting a return.
If you have $1000 in your pocket, you can easily pick any of the mentioned ways to invest and start making money after some time.
We would like to advise you that before selecting any ways to invest in any platform you should check the level of risk you are willing to bear during the investment period. If you have a low-risk bearing tendency then, it’s better to go for lighter options.
So what you are planning to do with $1000? & If you like our work on Smart ways To Invest $1000 then, Make us aware by leaving your comments below.