Okay, in the grand scheme of things, a grand might not seem like a lot of money and most financial advisors have investment minimums way above this threshold. But, it is possible to invest $1,000 in a smart and savvy way.
Of course, there's no one way to invest $1,000. Depending on the type of person you are, or your ultimate goals, you will want to take an approach that suits you to ensure you get the very best return on investment. So, here are a few tips that might appeal to you, and your personal circumstances:
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Pay off your debt
This notion may sound bizarre and somewhat counter-productive, but it's not. Having debt is essentially the opposite of having an investment, and it's something that has the potential to gnaw away at you, and your bank balance, on a daily basis. Holding onto debt is more costly than it is holding onto an investment, so wipe the slate clean (or close the deficit), stop paying interest, and focus on building your empire with solid foundations.
Choose your investments on an online trading platform
If you like to do it yourself, this option is likely to be the most appealing. Platforms like Betterment, Scottrade, and TradeKing, are user-friendly, rife with investment opportunities and provide a viable building block for the budding investor. Take your time researching the market, lay your chips down, and you could see your profits soaring in no time.
One of the biggest mistakes a serious investor can make is put all of his or her eggs in one big money-laced basket. The take home message here is - just because you only have $1,000, it doesn't mean that you can't mix it up and diversify your funds. Making smaller and wider spread investments which have been thoroughly researched will often yield the best result in the long run. So, diversify your funds and widen your wallet.
Fund your personal project
Okay, as we've mentioned: $1,000 isn't a fortune. But, if you have a startup idea, business plan, or creative project you really believe in, why not invest in yourself? Using a portion of your grand will help you with the fundamental tools and materials you need to get your project off the ground, and you could even use your new shiny promotional assets to start a professional crowdfunding campaign and gain even more capital to help make it a real success.