Best Way to Invest 1000 Dollars
A reader recently thanked me for inspiring her to make 1000 dollars through some of the strategies and ideas discussed on The Millionaires Giving Money Blog. The reader also asked me the following question:
What is the best way to invest 1000 dollars?
This question really got me thinking because this was the first time I was asked for investment advice so I wanted to make a worthy contribution. In this post I look at the best ways to invest 1000 dollars and how it could help anyone who's experiencing financial hardship to get out of poverty. The first piece of advice I would give would be to make another thousand dollars, if you've made a thousand dollars using some of the strategies mentioned on The Millionaires Giving Money Blog you can probably do it again and you could probably do it in less time as you become an expert on the strategy. You need to get into the habit of making money and Investing money so your circumstances improve day after day and eventually you'll step out of any poverty you are experiencing. So without further ado here are 10 ideas for investing 1000 dollars.
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What Can I Invest in With 1000 Dollars?
1: Pay off Debt
One of the best ways to invest 1000 dollars is to pay off high interest debt. It does not make sense to pay high interest on debt and receive low interest on your savings - Your net worth will keep going down. If you do have high interest debt pay it off and stop making these nasty high interest payments. Debts would include credit card debt, payday loans, and other high interest loans. If you've got an ultra low interest rate on your debt you might want to consider the next option.
Resources: How to Pay off Debt Using the Stack Method
2: Create an Emergency Fund
Your aim should be to get out of debt forever so you can pave the way for financial success. You can do this by creating a thousand dollar emergency fund which one of the best thing to invest 1000 dollars in. By having an emergency fund you wont need to go cap in hand to credit card companies and payday loans. If you do have a crisis you can use the emergency fund to get yourself out of trouble. Having an emergency fund also gives you a tremendous sense of security helping your anxiety and stress levels to fall. Whenever I have 1000 dollars to invest I always like topping up my emergency fund for a rainy day.
Resources: The Step By Step Guide to Building Emergency Fund
3: Pension Investments
If you're relying on the government for making provisions when you're older you're in for a shock because the UK and US Government are in so much debt that it would be impossible to fund a comfortable pension system. instead of relying on the government for scraps you need start investing with 1000 dollars in a pension plan. If you're employed and your employer contributes in your pension plan top it up and receive some free money from your employer because when you pay in your employer has to pay in too. By building a comprehensive pension pot you are making your own provisions for your future. But, don't just stop there, keep making a thousand dollars and keep topping up your pensions by maximizing your contributions.
4: Investing in Stock Market
At the time of writing this post the stock market is at an all time high so its probably not the best time to invest invest 1000 dollars. However when the stock market corrects as it will do in the future you could invest 1000 dollars for a quick return. The investors who bought stock back in 2008 are laughing all the way to the bank. The next bubble which is likely to be a fall in the dollars due to the US government printing money or the Student Loan Bubble when students cant repay their debt will lead to a 30 to 40% correction in the stock market. When this happens you need to know how to invest 1000 dollars and where to put your money. If you can choose solid stocks you could make a very healthy return. The key is making money now and waiting for the right time to invest.
Resources: 7 Steps to Investing in Stock Market with Less Risk
5: Invest in Dividend Paying Stocks
If you are planning to invest in the stock market you should do it regularly so you can withstand the effects of market volatility. The best way to invest a 1000 dollars in the stock market is by investing in Dividend Aristocrats. Dividend Aristocrats are safe stock and they've been paying increasing dividends for over 25 years. This means that you will receive passive income every year from your investment and it will also rise every year. If you're thinking about what to invest 1000 dollars in you should consider great companies like Coca Cola, Wal-Mart, McDonald's, Johnson and Johnson, as well as Procter & Gamble. These companies will keep on going no matter what and if you invest in the long run you will always make a profit.
6: Invest in Gold & Silver Coins
Another good way to invest 1000 dollars is to buy gold and silver coins. Gold reached a high of $1800 an ounce and has now fallen to $1255. This fall in price is due to the irrational exuberance of the stock market and Quantitative Easing (Printing Money) which is creating a bubble in the stock market. When the stock market crashes as it will do eventually Gold will surge and your investments will sky rocket. Continually keep on making a thousand dollars using The Millionaires Giving Money Strategy and then keep investing in gold coins and silver and watch your investment grow fast.
Resources: Investing in Gold & Silver
7: Invest in Property
Another of the best investment with 1000 dollars is to buy property. Property prices have always gone up in the long run so you'll always make money on bricks and mortar. At the time of writing this post property prices are near the highs they were in 2008 when the property bubble burst. If you can wait you will notice interest rates will eventually rise cooling the housing market. When prices fall and begin to stabilize you invest 1000 dollars and make money on peer to peer property investment companies online. You can buy a share in a property and receive dividends in the form of rent. You can also buy REIT's which are professionally managed to get exposure to the property stock. Again timing is important and you don't want to buy near all time highs.
8: Certificates of Deposits
If you're asking where to invest 1000 dollars now and don't want to take excessive risk on your capital a CD account would be suitable. Unfortunately you will receive a paltry return because rates are so low however the money will be safe and locked away for it to grow. You could keep on adding to your CD account and once you've managed to save a substantial account you could consider some of the other options once you've become fully informed.
9: Avoid Scams
Not investing in a risky investment is as good as investing in a safe investment because you wont lose money. There are countless investors who lose money by chasing a high yield. Any investment offer which is greater than 5% should be considered carefully because these are very risky and there is a high likelihood of the company going bust. Be wary of 'earn 1000 dollars per day without investment' as these always fail. I have fallen into this trap once and its not very nice losing money you've worked so hard to save. While this option might not exactly be an actual place to invest 1000 dollars its always worth remembering when you consider an investment strategy.
10: Invest in Yourself
One of the best way to invest 1000 dollars is to invest in yourself and in educating yourself with Financial IQ. I've spent so much money investing in books and seminars to understand the world of finance. All these books and lectures have helped me to make even more money. You can start by investing your money in some of the most popular books on personal finance. By immersing yourself into these books you will start to think differently about money and your habits will change. Before long you'll start making smart personal finance decisions which will help you to save money, make money and investment money for the future.
Where to Invest 1000 Dollars
The ideas and strategies to invest 1000 dollars to make money are tried and tested ways to increase your wealth. The first point to remember is not to lose money by investing in substandard investments. You need to get your timing right so you must be patient with your money putting it in Certificates of Deposits and then waiting for a great opportunity where you can buy a dollar for 50 cents.
If you can generate more money you should think about investing more like investing 1000 dollars a month to really supercharge your wealth generation. Everything is possible if you put your positive energy into making money and then investing it. I really hope this post gives you some ideas on how to invest a thousand dollars and feel free to leave a comment if you have safe investment ideas you want to share. Also please follow me on Google + for more insightful articles.