Looking to invest some extra money and make more down the road? Good idea!
You don’t have to have a ton of cash lying around to make some smart investments that will pay off in the future. In fact, you can start investing with just $1,000.
But you have to do it the right way in order to see returns and continue growing your wealth.
Read on about how to invest 1,000 dollars.
1. Retirements Accounts
Planning for your future has become less popular with young people as they tend to need access to their money now and don’t always have the extra cash to put aside for when they’re older.
But setting up a retirement account is a very wise way to invest your extra money and you’ll be grateful you did when you’re older and want to enjoy the best years of your life without worrying about income!
A Roth IRA seems to be the best investment of choice when it comes to retirement planning.
With this type of plan, you get a tax break when you withdraw money from the account and you have complete control over your funds as opposed to a retirement account set up by your employer.
2. Individual Stocks
If you follow the market and have your eye on a company or two, investing in individual stocks in a great way to go.
Be sure to choose the companies you invest in, wisely. Watch for stocks that are on the rise or companies who are about to split so you may be in store for dividend stocks in the future, increasing your ROI exponentially.
3. Mutual Fund
A mutual fund combines your money with other investors and is managed by a professional.
While some brokers require a larger minimum in order to invest in a mutual fund, others will allow you to begin with $1,000 as long as you agree to make monthly increases to the amount.
This could be a small payment of even just $50 per month.
This type of fund allows you to diversify your money early on. If you want to save money and forgo a broker, you can buy into funds directly through companies like Fidelity.
4. Crypto Currency
We’re still learning about this new technology and investment but it’s definitely on the rise and worth taking a look at.
Between BitCoin, Ethereum and some of the newer currency categories, you’ll need to have some knowledge of how cryptocurrency works in order to make the best investment for you.
You could easily split up your $1,000 and buy a few different kinds and sit and watch them grow.
It may take a while to see a return on investment but if you’re willing to take a bit of a risk, it could pay off in a big way as we saw last year with Bitcoin investors.
Now You Know How to Invest 1,000 Dollars
With the tips above, you have a better idea of how to invest 1,000 dollars and where to begin your investment journey.
Determine if you want to put your money toward a sure thing like a retirement plan or take a risk with stocks or cryptocurrency in the hopes of making as much money back as possible.
Be sure to check out the rest of our site for more helpful tips and advice!