The majority of people try their best to earn such an amount which can make their lifestyle better. For this purpose, people will do jobs, business and various types of tradings for earning a good amount. However, earning such an amount of money can start by just 1000 dollars which are most likely affordable for many people. But, as we all know that investing money is such a risky task which can become a source of increasing your bank balance as well as also the source of your bankruptcy. That is the reason, most successful entrepreneurs invest their money in such a market where there are fewer chances of losing money.
The basic rule of making a source of passive income is that you have to make a start by investing in any type of market with a small amount of money. Thus investing 1000 dollars in any type of business is the basic amount by which we can judge the market’s profit and loss ratio. Therefore for making a start, we have shared the top 10 best ways to invest 1000 dollars so that you can start earning a handsome amount by investing just 1000 dollars.
But before we get into the ways you can invest it, you should know how to make a good investment. To start investing any amount of money even if it is less than $1,000, you can follow these steps. These are tips have introduced by investors who have harvested a good amount of profit.
- Focus on profit ratio, not profit
- Start with an affordable amount
- Think about the future
- Start a side hustle
- Think long term
- Invest in yourself
- Think outside of the box
Let’s move deep into the article to learn what to do with your 1000 dollars.
1. Invest in the Stock Market
Investing your money, time, and energy in the stock market is not easy for everyone. Because the stock market is the type of market in which your money can be doubled or tripled within a few minutes as well as your money can also be lost within minutes. The reason for this wondrous behaviour of the stock market is the value of shares which can be changed at any time. But there you can invest in so many stocks that less than 1000 dollars. For example, today(12/19/2021) Apple stock price is nearly $171.14.
Thus if you have knowledge of how the stock market works? Then you can invest your money and can easily get a huge profit within a few days.
The right method of investing your money in the stock market is mentioned below:
- Firstly, you will have to track the value of shares that you are going to buy.
- Secondly, you have to check out the ups and downs which your particular market has faced within the past 30 days.
- In the end, you have to buy various shares of different values, which will have a total cost of 1000 dollars.
But knowing the risks and benefits is helpful to make a good decision:)
- It will make a long time passive income.
- Grow with the economy in the world.
- Easy to buy and sell.
- You will get social and business respect as a shareholder.
- Emotional ups and downs in the market.
- Risk of losing your all money.
- It will take a long time to study the market.
- Stockholders paid last
2. Try to invest in Online Courses
Investing in improving yourself through education is one of the best investments that can be made under 1000 dollars. As we all know that, Warren Buffet, who is one of the richest people on earth, says that You will be more valuable only if you are more skilled! Also, to make yourself more skilled, then for this purpose, you have to get more education.
That is the reason Bill Gates who is the owner of Microsoft, still reads books on a daily basis to get more and more education.
But by getting an education, I didn’t mean to get a college education or a degree which will cost you more than tens of thousands of dollars. I only refer you to get that type of education which will teach you demanded skills in the market even it can be a designing or something you prefer.
The reason for investing in online courses is that knowledge never dies it is the biggest investment you can make for yourself. You can easily purchase some most demanded skills in the market from online courses selling platforms like Udemy, Skillshare. Also, check the below screenshot from Udemy. All of them are under $1000, so you can learn a lot from even half of 1000 dollars.
- You can learn more about how to invest your money.
- It reduces the risk of lack of knowledge.
- Can start freelancing if you have learned more skills.
- Even can hire mentors to get more guidance.
- Required a long time. Otherwise, there are no cons to learning.
3. Invest in a High Yield Saving Account
As we all know that there are two major purposes of investment. The 1st one is to invest in such a business which can increase your wealth. The 2nd one is to invest in making emergency funds that can be used at any time of emergency. For instance, recovering business loss or health-related issues. Thus, for making emergency funds, the most appropriate method is to invest your money in a high-yield saving account.
The reason is that when you will invest a small amount like 1000 dollars in a normal saving account, you will get the interest of only 0.06%. But when you will add the same 1000 dollars to a high yield saving account, you will earn the interest of 1% according to the latest reports on CNBC. In this way, your money can be doubled slowly but steadily and becomes enough for emergency purposes.
- No risk.
- You will make a long time passive income.
- The money in your high yield is accessible at any time.
- Most high yield bank accounts are online, so easy to maintain.
- Interest rates can fluctuate at any time, so you might not get the expected interest per month.
- Your money is accessible but there are limits to withdrawals.
- Most of the online high-yield savings account banks don’t have a physical bank location.
4. Investing in Flipping Real Estate Contracts
The majority of people think that investing in a real estate business is a long-term project. But it’s not true. Due to a lack of knowledge, people think that real estate is a business of buying and selling houses. But they don’t know that real estate is also a business of flipping contracts.
By investing 700-1000 dollars, you can easily flip a contract, and when you get successful in flipping. You will get profit for that. In the first go, it might look odd, but when you earn the profit after this method, you will know the real value of this strategy.
- No risk.
- You will make a long time passive income.
- Can get understand the local market.
- It builds you personal pride
- Risk of Loss.
- The tax will increas.
5. Invest in Cryptocurrencies
Investing in cryptocurrencies is the trending way of doing investment nowadays. But there is a lot of risk in doing investment in this market. The reason is that the value of the coin which you have bought can be increase or decrease within seconds due to market competition and demand.
Thus, to reduce the risk of getting lost, we will recommend you to get proper education about how cryptocurrencies work? In this way, you can play the market very easily.
For example, when we take bitcoins, if you invested your 1000 dollars in 2011 when it costs 1 dollar per bitcoin, you get 1000 bitcoins. However, the interesting fact is today the value of 1000 Bitcoins has estimated at $ 57,376,100. If so, you’re a millionaire today, surprising right?
Here are some of the pros and cons you should know before you get into the crypto market.
- Can make huge profits.
- Immediate and secure ownership transfer.
- No scams in Cryptocurrency.
- Will be a huge demand in future.
- Loss risk is high.
- Illegal activities can be perform
- The cryptocurrency market is highly volatile, which means very hard to make predictions by looking at graphs.
6. Investment on Advertising
Running a manual ad is the old method which will cost a lot of money but gives very few benefits. But the time has changed, so the method of advertising has been changed. Now advertising your business on popular social media platforms like Facebook and Google can boost your profit rate by 200%.
Related: Reasons Why Social Media Important for your Business.
One thing which you have to keep in mind is that this investment method is only for those people who already have some kind of business. Thus, investing just 800-1000 US dollars in an advertisement on the internet can double or triple your money within a few minutes. The only thing you must have to proceed with this method is an effective marketing plan.
- It can boost your revenue.
- Build a brand awareness
- Able to reach a worldwide audience.
- Risk of negative publicity.
- A marketing campaign must run for a long time.
7. Invest in the certificate of deposits
Investing your $1000 in the certificate of deposits, also known as CD, is one of the long-term investing programs which will provide you earnings in the form of interest.
The one flaw of this investment is that when you buy the CD, you can not withdraw your deposited amount over the course of 40 days to 10 years.
At the end of every 60 days, you will earn an interest which will depend on the deposited amount. Thus if you want to collect a good amount of money within the period of 10 years, this method is best for you.
- CDs are some of the safest places to store your money.
- Higher interest rates.
- Guaranteed returns.
- No monthly maintenance fees to pay.
- Cannot withdraw until the CD matures.
- Interest rate fluctuation.
- Inflation Risk.
8. Invest in a Robo-advisor
Investing in a Robo advisor is such a thing that every man living in this world must need to do if he wants to increase his money. Robo advisors will help you to double your money by telling you about which assets you have to buy right now, and within a few hours, it will ask you to flip that asset. In this way, you can increase your money.
Before putting your money in Robo advisors, these advisors will ask you some basic questions, which are only for the purpose of determining your goals of investment. You must need to invest 500-800 US dollars for using these extraordinary AI tools.
- Nobel prize-winning investment model.
- Well designed investment portfolios.
- Expanding the market for financial advice.
- Can access it through a financial advisor.
- They aren’t 100% personalized.
- Robo-advisor tends to bash advisors’ price schedules
- Can’t meet face to face.
9. Invest your Money in Peer-to-Peer Lending
If you want to invest your money in such a business where there is no risk, and you can smoothly earn the profit, then peer-to-peer lending, which is also knowns as P2P lending, is for you. In this method of investment, you work as a bank and gives loan to individuals or company owners for a limited time. Thus ultimately, you will earn an interest which is totally the profit for yourself.
In this way, your money which you have to lend to someone is safe as well, as you have earned the profit in the form of interest. And the very best thing about this P2P lending is that you can start it from only $1000.
- It can generate higher returns.
- Offers a huge variety of options to the investors to invest.
- Able to communicate with buyers directly.
- Risk of losing all the money if you invest in a high-risk category.
- The lender must be ready to hold on until it gets matured or it’s completely paid.
- Have to pay tax for every interest.
10. Investment for starting an online business
The most appropriate method for making an investment is to start an online business. There you can find so many profitable online businesses such as;
- Creating a blog
- Online Store
- Youtube channel as a content creator
- Become A Virtual Assistant
- Building Apps
If you ask what is the best and profitable online business to invest your 1000 dollars in, my recommendation is to start a profile blog. It will never cost 1000 dollars to start a blog so you can invest the rest to continue and maintain the blog properly. Also, there are so many ways to monetize your blog.
Majorly for starting an efficient blog, you only need to invest in the domain, hosting, and content writing for your website. When you have done with all of these things, visitors will start coming to your website, which ultimately brings profit.
Whereas, if you have a physical store where you sell various products, then you must need to convert your physical store to an online store. Because the world is changing, so the way of buying and selling has also been changed. Thus making an online store is one of the most beneficial steps which you can take under $1000. Similarly, e-commerce platforms like Amazon, eBay, and Etsy can also provide you with a number of benefits in the form of huge profits.
- Low overhead costs.
- Ability to collect customer data
- Able to reach a massive audience.
- Have many options to make money online.
- Customer Service Challenges
- Lack of online process.
- High competition.
Bonus way: Invest in Virtual Real Estate
Not only physical real estate but today, we have virtual real estate due to the advancement of technology. After introducing the Facebook metaverse, it was another effect to boost the value of virtual real estate.
The market is always moving towards technology. So if you invest in virtual real estate it becomes a huge investment in the near future. For example, a Canadian investment firm invested in a plot of digital land in metaverse which has cost $2.43 million. It was the largest investment ever made in a virtual real estate business.
Also, many virtual game players have tended to invest in their virtual worlds more than the real world. For instance, a man has bought a virtual sword in a game for $16,000, according to CNB. How crazy?
However, the demand for virtual real estate increases day by day but we cannot measure the future at 100%. That’s why I have added this investment method as a bonus method. We do not influence you to be worried and invest fast, only we need to let you know what are the best ways and how they process your investment of 1000 dollars.
- When the world becomes a metaverse your little investment can become a million-dollar one.
- You can make virtual money such as cryptocurrency in the metaverse.
- Many business models will tend to the metaverse concept in near future.
- Some people criticize the concept of the metaverse.
- Your real-world wealth will be decreased
Frequently asked questions
Is it good to start investing less than $1000?
Yes, of course, there is no matter how much you can invest. You should only focus on ROI(Return On Investment). In simple words, if you can make $10 by investing $2 within a month, it is just a fantastic investment.
What is the best way to invest my 1000 dollars?
Among all of these mentioned investment methods, we recommend you invest your money in starting an online business. The reason is that this method is very easy, and it can be understood by every type of person regardless of the field he or she is related to.
What is the fastest way to double my 1000 dollars?
You may know that the fastest money making methods are so risky. But for knowing, to double your 1000 dollars by investing, you can use invest in crypto and the stock market. Other alternatives will take a long time to generate income and profits.
How to invest your thousand dollars is one of the major problems faced by those people who want to avail every single amount of money in such a way that it can be doubled or tripled. That is why we have collected high-quality and accurate information about the best ways to invest 1000 dollars.