• Money
    • Budget
    • Shop
    • Travel
    • Stories
  • Career
    • Advice
    • Entrepreneurship
    • Freelance
    • Small Business
  • Investing
    • General
    • IRA + 401K
    • Stocks + Bonds
    • Retirement Planning
    • Estate
  • The Basics
    • Student Loans
    • Credit Cards
    • Debt
    • Taxes
    • More
  1. Home
  2. Investing
  3. General
  4. How to Invest $1,000

How to Invest $1,000

November 18, 2016
By: Bola Onada Sokunbi
  • Share
  • Share on Facebook

$1,000 is a solid amount to get started with when it comes to investing, but how (and where?) do you start? It can be intimidating if you have never invested before, but there's nothing to be afraid of; all you need is a little guidance. Here are a few tips on how to make the most out of that $1,000.

money
credit: antique money

Invest in an index fund

Index funds are similar to mutual funds in that they are based on a portfolio of different stocks all pooled together. Index funds however, track against a market index, like the S&P 500 or the Dow Jones. Their goal is not to beat the market, but instead follow the stock markets trajectory. Despite dips and spikes over the short term, the market always goes up. They are a great investment avenue because your portfolio is widely diversified across many different stocks. Another bonus is their minimal maintenance costs.

Video of the Day

Contribute to your emergency fund

When it comes to setting up your emergency fund, it is strongly recommended that you start with $1,000 to cover any basic emergencies. It's your "oh, shit!" money. If your car breaks down, your water heater stops working, or you get a super high electric bill, that $1,000 will help deal. Once that is in place, you should aim to have 3-6 months of expenses put aside.

Fund a business

So many business are unable to grow or get started because of lack of funding. Becoming a business investor, either in your own or in someone else's business, is a great way to invest. Not only will you help a business grow, you can also become an equity holder or get your money back with interest.Do your research to ensure that any business you put your money into is one you understand and is a worthwhile investment.

Attend a conference

There are tons of really amazing conferences out there that can help you with your personal development, career advancement, and so much more. Why not invest in yourself? You can learn and grow, but also network with like minded people. Start by seeking conferences out in your city or consider taking a trip out of town; you can make a mini vacation out of it!

Pay down debt

Every dollar you pay down in debt reduces the total amount of interest you'll have to pay back to your creditors. A $1,000 payment towards your credit card debt can shave off loads of interest. Paying off debt is an investment in itself because once you are able to pay down your debt, you can free up more money for other investments.

Invest in your kids college education

College is one of the biggest expenses your children may have, so why not give them a head start? Open up a savings account or 529 savings plan to help save towards their college education. Not only will you minimize their future student loans, you'll be investing in their financial future.

Show Comments

Related Articles

Pros and Cons of the Stock Market

Pros and Cons of the Stock Market

Investing
Stocks + Bonds
By: Lauren Romano
How to Get Rich in Your Teen Years

How to Get Rich in Your Teen Years

Money
Budget
By: Jennifer Simon

PARTNER CONTENT

20 Common Money Mistakes to Avoid

20 Common Money Mistakes to Avoid

How to Become a Real Estate Developer

How to Become a Real Estate Developer

Money
Budget
By: James Green
How to Become Rich the Right Way

How to Become Rich the Right Way

Investing
General
By: Rose Johnson
How Should a Retiree Invest Money?

How Should a Retiree Invest Money?

Investing
General
By: Bonnie Conrad

Get Weekly Savings& Finance Tips.

  • Money
  • Career
  • Investing
  • The Basics
  • About
  • Contact Us
  • Terms
  • Privacy Policy
  • Copyright Policy
© 2019 Leaf Group Ltd. Leaf Group Media

Get Weekly Savings
& Finance Tips.

Money Made Easier.

Please enter a valid email.