Congratulations! You’ve hit a big financial milestone. You’ve saved up $1,000.
Now it’s time to take the next step in your journey toward financial independence. And that means making your money work as hard for you as you do for it. How? By investing wisely.
Check this out: If you can invest $1,000 every year — and that’s just $3 a day — and earn 15% on it for 30 years, you’ll end up with more than $500,000! That’s a game-changer.
But how the heck can you earn 15%? No guarantees, but here are some ideas that will allow you to get started for $1,000 or less.
1. Invest in real estate (with as little as $10)
It used to be that investing in commercial real estate, like apartment or office buildings, required lots of money and lots of expertise.
Today, thanks to an online investing platform called Fundrise, you can invest in commercial real estate for as little as $10.
Fundrise combines state-of-the-art technology, in-house expertise and low fees to put you into institutional-quality real estate, including private projects that aren’t available on public markets. These are the types of deals previously reserved for only the wealthiest investors.
And the returns? According to Fundrise, the average investor in their projects was up 26% over three years and more than 50% over five years.
You should never pin your hopes on past performance because it’s never a reliable indication of future results. Nonetheless, that’s a nice track record, one that takes almost no effort and comes without the ups and downs of the stock market.
Don’t sit on the sidelines. If you’re ready to become a real estate investor, get started now.
2. Hire an investment professional
In the past, figuring out what to do with your money was as simple as deciding whether to put your money in a savings account or the stock market.
Over time, though, investing has gotten a lot more complicated. You can invest in mutual funds, ETFs, cryptocurrencies, precious metals, bonds, real estate investment trusts, stocks or myriad other choices. And you can choose lots of ways to do it, including in a regular IRA, a Roth IRA, a regular or Roth 401(k) or 403(b), 529 college savings plans, health savings accounts and more.
Not sure where to start? Save yourself the headache and enlist the help of a professional; maybe not with your first $1,000, but as your savings start accumulating. In fact, even if you only have $1,000, using some of it to buy a financial plan that can help guide you isn’t a bad idea.
The value of working with a financial adviser varies by person, but according to an independent study, people who work with a financial adviser feel more at ease about their finances and could hypothetically end up with about 15% more money to spend in retirement.
Finding the right financial adviser is easier than you think. With a free matching service called SmartAsset, you can be connected with fiduciary advisers in your area; that means they’re legally required to put your interests ahead of theirs. You can also typically get a free appointment before deciding.
A good investment professional will help you establish goals and put together a plan that makes sense for your personal situation.
If you’re ready to be matched with an adviser that can help you make the right decisions, get started now.
(Please carefully review the methodologies employed in the Vanguard white paper, “Putting a Value on your Value: Quantifying Vanguard Advisor’s Alpha.”)
3. Leave your family with $1 million
You have a lot going on. You have a family to take care of, a house to clean, a job to do and a million other things on your plate to keep track of. Life insurance shouldn’t be one of those things.
Life insurance is an important part of any financial plan, but that doesn’t mean you have to jump through hoops to get it. With a company called Bestow, you can get a term life insurance policy in minutes — for just a few bucks a month.
Bestow is known for its no-hassle approach to insurance. You don’t even need a medical exam to get started. Just enter a few key pieces of information about your health and family, select a coverage amount between $50,000 and $1.5 million, and they’ll give you a fast and hassle-free quote.
It’s free to get your quote online, and it only takes two minutes.
4. Earn 5% while helping small businesses grow
You wish you could find a savings account that paid 5% interest. These days, you’d be lucky to find anything close to 1%. Well, now there is something you can do about it.
Worthy is a new way to earn up to 5% interest on your cash while helping small businesses grow. That’s right, that’s 5% fixed interest, compounding daily.
Worthy offers bonds that are qualified by the Securities and Exchange Commission and that focus on small businesses with community impacts.
On top of that, there are no fees and penalties, and you have access to your money at any time.
Yields are 5% annually, allowing you to get more from your money than you would with some other types of bonds — and certainly beating high-yield savings accounts.
If you’re ready to join Worthy’s community of over 100,000 American households, visit Worthy to learn more and get started.
5. Invest in Amazon, Facebook or Tesla with just $1
If you’d invested $1,000 into Apple stock when it first went public back in 1980, you know what it would be worth today? About $1.2 million. That’s an annual rate of return of close to 20%.
Obviously, not all stocks are home runs like Apple, but there’s no reason to stay on the sidelines while you watch companies like Google, Facebook, Microsoft and Amazon double and triple in value.
The good news is that you no longer have to have a ton of money to get into the stock market. With an investing app called Stash, you can invest in virtually any company with as little as $1. So your $1,000 can easily buy you a diversified portfolio of companies.
Of course, stocks sometimes go down as well as up, so stay informed and don’t put so much into the stock market that it stresses you out. Don’t get ahead of yourself.
Depending on the stocks you choose, you can even receive regular dividend payouts as a part of quarterly profit-sharing plans — just for owning a small portion of the company. Reinvest those dividends and keep your portfolio balance growing.
It only takes a couple of minutes to sign up, and you could be well on your way to reaping the benefits of owning a chunk of a major corporation.
Plus, you’ll get a $5 welcome bonus after you deposit $5 into your account.
6. Earn 20 times what your bank pays
Are you earning as much interest on your savings as you could be? The national average annual percentage yield (APY) among savings accounts is a puny 0.06%. At that rate, a balance of $10,000 earns just $6 a year!
Instead of settling for a minuscule yield on a more traditional savings account, open a rewards checking account with Axos Bank and earn up to 20 times the national average.
When you combine the best services and accounts, including rewards checking, at Axos Bank, you could potentially earn up to 1.0% APY. Best of all? There are no monthly service fees, and there are unlimited ATM fee reimbursements, so you can access your money from anywhere.
Plus, each account is backed by a 100% risk-free return and is FDIC-insured. No more risk, lots more reward.
So, if you’re ready to beat the local banks and earn up to 1.0% interest on your insured savings, open an account today.
7. Learn and earn
While you don’t have to obsess over the news, it pays to visit expert sources to make sure you’re up to date on the latest techniques to make more, spend less and invest wisely.
Solution? Subscribe to the totally free Money Talks Newsletter. More than a million Americans have, and they’ve reported saving an average of $991.20 each just from following our news and advice. So maybe next time you’ll have $2,000 to invest instead of $1,000!
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