If you too have managed to scrape a meager 1000 bucks and want to see the zeroes increasing in number than spare yourself from buying a washing machine or a new television set – invest your money.
Finding out the best way to invest 1000 bucks might turn out to be an overwhelming task but not so if you pay heed to some of the expert investment tips. Given below is a list of investment ideas that would help you. Prior to choosing your investment option, it is imperative to understand the obvious risks that an investor has to bear. All investments are subject to market risks; hence, weigh your options before joining the bandwagon. Here are some of the investment options that you can try with a grand:
A rise in the 401k contribution: Now, that’s the simplest and easiest way to enjoy good returns on your $1000. Just increase your monthly contributions by $100 a month and that way you would be ending up investing $1000 in a year. If your employer contribution matches then you can laugh all the way to the bank. Isn’t that the best way to invest $1000 bucks?
Investing on indexed ETF: In order to invest in the indexed ETF or exchange-traded funds, you need to open a brokerage account or personal retirement fund. Though these investments bear similarity to mutual funds but they are traded just like stocks and come in a range of options.
It is imperative to stick to the low-price ETFs as you would save yourself from spending all your money at once. A prudent choice of popular index funds will shield your investments and you might even use the extra money to invest in exotic investments.
Pay off debts – This is obviously the first thing that comes to mind when you have extra $1000 to spare. If you have a mortgage or other long-term debts then paying off a part of the principal amount will go a long way in reducing the interests that you pay.
Real estate – Now you can use your $1000 to invest on real estate by buying mutual funds and ETFs that specialize in real estate investment. You can expect to get handsome dividends with the rise in the price of the real estate shares. In a similar way, you can even lose money if the share prices slide.
Certificate of Deposit – The other best way to invest 1000 dollars is to buy certificate of deposit. The certificate of deposit is a risky proposition but the returns too are really attractive – it’s all dependent on the rate of inflation.
There is no reason you should put your money in the cold storage – instead invest and invest carefully. Best of luck!