What you’ll do with $1000? What most of the people do is that they keep it in their saving account and don’t use it. Fine enough but this is not what investors do. If a financial expert had $1000, he’d invest it – immediately.
You should do the same because this is how you become rich.
Investing $1000 won’t make you rich but investing $1K several times over and over again will definitely make you rich. You just have to find ways where you can invest $1K. Here are 5 ways a financial expert will invest his $1000 and this is what exactly you can do with your savings.
- Peer-to-peer lending
Peer-to-peer (P2P) lending is perhaps one of the best ways to invest your money. It refers to lending money to people via an online platform like Lending Club. Both borrowers and lenders are connected by an intermediary (known as a platform). You lend money to people in need and earn interest in the process – just like a bank.
There are several P2P platforms such as:
You can choose borrowers based on their projects and estimated return. You can lend $1000 to multiple borrowers, this reduces risk significantly. For instance, you can invest $100 in 10 different businesses. This makes your investment portfolio fairly diversified.
Investing in stocks seems to be one obvious thing to do when it comes to investment. You can choose your own stocks via a brokerage. But this is not what I’ll recommend to new investors. A better option is to go for Motif. It lets you create multiple mini mutual funds. You can trade stocks and access IPOs. There are several mini mutual funds available that you can choose from instantly.
If you’ve been into stock trading, you can purchase individual stocks.
- Metal investment
Stocks are too mainstream. Almost everyone is into the stock market these days. Metal investment is something that’s not too common. You can invest your $1000 in different metals such as silver, gold, or platinum. Start with silver since it is the cheapest metal, you’d be able to tolerate losses. Check silver price charts to see historical data on price movement. It will give you a better idea of how much to invest.
- Index fund
Buy an index fund. Index funds are transparent, popular, and have minimal management fee. Investing in an index fund is much safe as compared to stocks because you’re investing in the entire stock market.
You can open a Roth IRA (Individual Retirement Arrangement) and choose any low-cost index fund. This is one of the safest investments you’ll ever find for your $1000.
- Start an online business
This one is my favorite. Start an online business. You can do it in as low as $1000.
For instance, you can start a t-shirt business right from your home even if you don’t manufacture t-shirts.
Don’t worry if you don’t have any clue of how to start a tshirt business, when I started my online businesses 7 years back, I didn’t know anything.
You’ll get there.
To get started, choose a niche, buy a domain name, buy hosting, buy a theme, and you can get started in under 30 minutes.
The only downside of investing your savings in a business is that you won’t get a return as quickly as you’d get in other types of investments.
Having $1000 is not a big deal. The real challenge is to use your saving and multiply it. Invest your money. Even if you’ve $100, invest it.
Investment isn’t just beneficial for you but it is beneficial for everyone as it keeps the money in circulation and that’s how the economy grows.