What is the best thing to invest $1,000 in?
Put it in an IRA
- Pay down high-interest debt. ...
- Build an emergency fund. ...
- Stash your money in a high-yield savings account. ...
- Put your cash in a certificate of deposit (CD) ...
- Contribute to an individual retirement account (IRA) ...
- Get your 401(k) employer match.
If your employer offers a 401(k) with matching contributions, it's entirely possible to double your $1,000 investment. How much money your company matches will vary, but many offer to match half or even all of your contributions. If they offer 100% matching, you can double your money in no time.
| Stock | Implied upside from Jan. 5 close |
|---|---|
| Amazon.com Inc. (AMZN) | 23.9% |
| Nvidia Corp. (NVDA) | 22.2% |
| Meta Platforms Inc. (META) | 10.8% |
| Tesla Inc. (TSLA) | 26.3% |
The Bottom Line
With many available options, investors can use $1,000 to purchase ETFs, stocks, or bonds. Simply paying off outstanding debt may save money in interest payments over time and prove to be a wise investment.
- U.S. Treasury Bills, Notes and Bonds. Risk level: Very low. ...
- Series I Savings Bonds. Risk level: Very low. ...
- Treasury Inflation-Protected Securities (TIPS) Risk level: Very low. ...
- Fixed Annuities. ...
- High-Yield Savings Accounts. ...
- Certificates of Deposit (CDs) ...
- Money Market Mutual Funds. ...
- Investment-Grade Corporate Bonds.
- Bond funds.
- Dividend stocks.
- Value stocks.
- Target-date funds.
- Real estate.
- Small-cap stocks.
- Robo-advisor portfolio.
- Roth IRA.
The S&P 500 index has generated an average yearly return of about 10% over the past 50 years. Now, let's say you're sitting on $1,000. If you put that money into an S&P 500 ETF, do nothing, and wait a little over 24 years, you could end up growing it into $10,000, assuming you get that same 10% average annual return.
Trading options is one of the fastest ways to double your money – or lose it all. Options can be lucrative but also quite risky. But to double your money with them, you'll need to take some risk. The biggest upsides (and downsides) in options occur when you buy either call options or put options.
- Invest in Real Estate.
- Invest in Stocks and ETFs.
- Get Out of Debt Now.
- Start an Online Business.
- Retail Arbitrage.
- Invest in Yourself.
What stock pays you the most?
| Company | Dividend Yield |
|---|---|
| Pennymac Mortgage Investment Trust (PMT) | 11.03% |
| Franklin BSP Realty Trust Inc. (FBRT) | 10.94% |
| International Seaways Inc (INSW) | 9.95% |
| Altria Group Inc. (MO) | 9.78% |
The truth is that most investors won't have the money to generate $1,000 per month in dividends; not at first, anyway. Even if you find a market-beating series of investments that average 3% annual yield, you would still need $400,000 in up-front capital to hit your targets.
Altria Group Inc.
Altria is a popular dividend stock that has been atop the list of the highest-paying S&P 500 dividend stocks for a while. That's because of its consistent and reliable yield and a great track record of increases in its payouts.
- Buy an S&P 500 index fund. ...
- Buy partial shares in 5 stocks. ...
- Put it in an IRA. ...
- Get a match in your 401(k) ...
- Have a robo-advisor invest for you. ...
- Pay down your credit card or other loan. ...
- Go super safe with a high-yield savings account. ...
- Build up a passive business.
Next Big Thing in Investing: Artificial Intelligence
AI has the potential to change how we do everything — from the way we shop to how businesses are run. In fact, it seems the impact of AI will touch every industry. For investors looking to jump on board this trend, there is plenty to think about.
If you invest $1,000 per month, you'll have $1 million in 25.5 years. Data source: Author's calculations.
Treasury Bills. The Government of India issues Treasury Bills to raise funds for up to 365 days. It is considered an investment with the best returns. Since the government gives these, they are considered very safe.
Treasury Bills, Notes and Bonds
U.S. Treasury securities are considered to be about the safest investments on earth. That's because they are backed by the full faith and credit of the U.S. government. Government bonds offer fixed terms and fixed interest rates.
- High-yield savings accounts.
- Certificates of deposit (CDs) and share certificates.
- Money market accounts.
- Treasury securities.
- Series I bonds.
- Municipal bonds.
- Corporate bonds.
- Money market funds.
1. Stocks. Almost everyone should own stocks or stock-based investments like exchange-traded funds (ETFs) and mutual funds (more on those in a bit). Stocks have consistently proven to be the best way for the average person to build wealth over the long term.
What is the best thing to invest in right now with little money?
Savings bonds
Only buy bonds you can afford to leave until maturity, or you won't get the total return you'd hoped. Savings bonds are a great way how to invest with little money. Plus, you'll diversify your portfolio and keep at least a portion of your funds risk-free.
If you have $1,000, starting an IRA at an online brokerage is a great way to start working toward long-term wealth generation. For 2022, investors can deposit as much as $6,000 into an IRA -- and another $1,000 if they're older than 50.
To turn $5,000 into more money, explore various investment avenues like the stock market, real estate or a high-yield savings account for lower-risk growth. Investing in a small business or startup could also provide significant returns if the business is successful.
- Invest in real estate.
- Gather your savings in a high-yield savings account.
- Invest in the stock market.
- Start a blog.
- Use robo advisors.
- Invest in cryptocurrency.
- Start an e-commerce business.
- Start a dropshipping business.
Remember, time is money. The more time you spend in the market, the more you earn while investing less. You can convert $1,000 into $100,000 in 15 years, 10 years, or even 7 years in your portfolio, which will give you a compounded annual growth rate (CAGR) of 15%–16%.
References
- https://fmtrust.bank/money-moves-article/is-short-term-or-long-term-financing-best-for-your-business/
- https://www.empower.com/the-currency/money/average-portfolio-mix-by-investor-age
- https://money.cnn.com/retirement/guide/investing_basics.moneymag/index7.htm
- https://money.usnews.com/investing/articles/high-return-low-risk-investments-for-retirees
- https://corporatefinanceinstitute.com/resources/career-map/sell-side/capital-markets/short-term-investments/
- https://owenthewriter.medium.com/double-your-100-tips-for-doing-it-fast-857f28ac7ca6
- https://www.cbsnews.com/news/reasons-to-invest-in-a-short-term-cd-this-month/
- https://www.nasdaq.com/articles/do-this-for-$4000-in-dividend-income-every-month
- https://www.gobankingrates.com/money/making-money/best-ways-to-double-5000-dollars/
- https://www.investopedia.com/articles/trading/09/short-term-trading.asp
- https://www.fool.com/retirement/2023/09/23/retiring-in-2-years-make-these-3-moves-sooner-rath/
- https://www.finder.com/savings-accounts/12-interest-savings-account
- https://www.screener.in/screens/608168/stocks-for-short-term-buying/
- https://www.nerdwallet.com/article/investing/the-average-retirement-savings-by-age-and-why-you-need-more
- https://www.morganstanley.com/articles/dollar-cost-averaging-lump-sum-investing
- https://www.bankrate.com/investing/best-investments/
- https://www.cbsnews.com/news/how-much-is-too-much-money-for-a-high-yield-savings-account/
- https://www.marshmma.com/us/insights/details/should-i-reduce-my-401k-contribution-when-the-market-is-down.html
- https://www.nerdwallet.com/article/banking/how-to-insure-your-money-when-youre-banking-over-250k
- https://www.fool.com/the-ascent/banks/articles/heres-what-happens-when-you-have-more-than-250000-in-savings/
- https://groww.in/blog/best-investment-options-in-india
- https://stockanalysis.com/article/10-percent-return-investments/
- https://finance.yahoo.com/news/retirement-savings-compare-average-american-110056149.html
- https://finance.yahoo.com/news/7-best-ways-invest-5-152745788.html
- https://www.cbsnews.com/news/how-much-100000-earns-in-a-high-yield-savings-account/
- https://money.usnews.com/investing/articles/best-monthly-dividend-stocks-to-buy-now
- https://www.kiplinger.com/retirement/dont-bet-your-retirement-on-stocks-follow-these-tips
- https://time.com/personal-finance/article/best-way-to-invest-100k/
- https://www.cnbc.com/2023/06/15/how-much-money-it-takes-to-be-considered-wealthy-in-major-us-cities.html
- https://www.investopedia.com/financial-edge/0810/the-7-best-places-to-put-your-savings.aspx
- https://millennialmoney.com/how-to-turn-1000-into-10000/
- https://www.screener.in/screens/300202/stocks-with-good-1-month-returns/
- https://www.livemint.com/market/stock-market-news/stock-market-today-day-trading-guide-for-nifty-50-to-sensex-six-stocks-to-buy-or-sell-on-thursday-11709781311137.html
- https://www.fool.com/retirement/inheritance/
- https://www.troweprice.com/content/dam/iinvestor/planning-and-research/t-rowe-price-insights/retirement-and-planning/pdfs/how-much-cash-should-retirees-have-on-hand.pdf
- https://www.acc.org/latest-in-cardiology/articles/2017/05/15/15/fiscal-matters-investment-risks-short-term-vs-long-term
- https://www.indmoney.com/articles/top-5-stocks-to-invest
- https://finance.yahoo.com/news/500-every-month-passive-income-130041730.html
- https://money.usnews.com/investing/articles/best-ways-to-invest-5000
- https://medium.com/crypto-and-money/7-proven-ways-to-make-5-000-9-000-per-month-in-passive-income-1aafbf025154
- https://www.personalfinancelab.com/finance-knowledge/personal-finance/short-term-financing/
- https://www.bankrate.com/investing/ways-to-double-your-money/
- https://www.fool.ca/2022/12/09/investing-in-the-stock-market-could-turn-your-1000-into-100000-heres-how/
- https://finance.yahoo.com/news/10-best-stocks-invest-2024-200401023.html
- https://money.usnews.com/investing/articles/high-paying-dividend-stocks-in-the-s-p-500
- https://investwithcarl.com/learning-center/investment-basics/investment-types/short-term-stock-investing
- https://www.businessinsider.com/personal-finance/7-percent-interest-savings-accounts
- https://groww.in/blog/how-much-money-can-you-make-trading-stocks
- https://www.troweprice.com/personal-investing/resources/insights/how-to-benefit-most-from-your-financial-windfall.html
- https://finance.yahoo.com/news/turn-100-000-investment-1-161238030.html
- https://www.businessinsider.com/personal-finance/6-percent-certificate-of-deposit-cd
- https://www.fool.com/investing/how-to-invest/how-to-invest-1000-dollars/
- https://www.schwab.com/retirement-portfolio
- https://www.nerdwallet.com/article/investing/best-ways-to-invest-5000
- https://money.usnews.com/money/retirement/iras/articles/how-to-invest-for-retirement
- https://www.bankrate.com/investing/best-short-term-investments/
- https://smartasset.com/investing/best-way-to-invest-100k-short-term
- https://www.experian.com/blogs/ask-experian/safest-place-to-save-money/
- https://chartink.com/screener/stock-that-doubled-in-1-month
- https://m.economictimes.com/wealth/save/6-banks-offering-up-to-8-interest-rate-on-savings-accounts/articleshow/105990711.cms
- https://homework.study.com/explanation/assume-you-have-100-000-what-would-you-do-to-double-it-in-1-year-briefly-explain.html
- https://www.wallstreetmojo.com/rule-of-69/
- https://www.fool.com/the-ascent/buying-stocks/articles/is-there-such-a-thing-as-being-too-old-to-own-stocks/
- https://www.ellevest.com/magazine/investing/lump-sum
- https://smartasset.com/retirement/what-is-the-120-age-investment-rule
- https://www.fool.com/the-ascent/personal-finance/articles/how-long-does-it-take-to-become-a-millionaire/
- https://finance.yahoo.com/news/genius-ways-1-000-month-105500970.html
- https://fortune.com/recommends/investing/safe-investments/
- https://www.bankrate.com/investing/best-long-term-investments/
- https://www.mstock.com/articles/10-best-shares-to-buy-today-for-long-term
- https://www.nasdaq.com/articles/how-much-money-should-you-have-in-the-stock-market-if-youre-75
- https://www.cnn.com/cnn-underscored/money/cds-vs-bonds
- https://www.cnet.com/personal-finance/banking/savings/these-high-yield-savings-accounts-earn-5-percent-apy-or-more/
- https://www.zenbusiness.com/blog/6-businesses-you-can-start-for-under-5000/
- https://www.brewin.co.uk/insights/where-save-and-invest-lump-sum-money
- https://www.investopedia.com/articles/investing/062714/100-minus-your-age-outdated.asp
- https://time.com/personal-finance/article/ways-to-invest-1k/
- https://www.goodfinancialcents.com/how-to-make-money-dividends/
- https://www.empower.com/the-currency/life/average-net-worth-by-age
- https://www.voya.com/blog/7-easy-ways-to-start-investing-little-money
- https://www.bajajfinserv.in/investments/best-short-term-investment-schemes-to-make-money
- https://smartasset.com/investing/how-to-invest-100k
- https://smartasset.com/retirement/how-long-will-150k-last-in-retirement
- https://www.theseniorlist.com/elder-law/investing/
- https://www.westpac.com.au/about-westpac/indigenous/indigenous-financial-education/managing-and-protecting-lump-sum-of-money/
- https://money.usnews.com/money/retirement/articles/what-is-a-good-monthly-retirement-income
- https://www.investopedia.com/how-to-invest-usd1-000-4584763
- https://www.cnn.com/2023/09/20/success/park-cash-save-interest-rates/index.html
- https://www.cnbank.com/Your_Bank/Education_and_Advice/CNBU_Articles/Rebalancing__A_Market_Timing_Strategy_That_Works/
- https://finance.yahoo.com/news/much-dividends-100k-143957889.html
- https://www.usatoday.com/money/blueprint/banking/savings/7-percent-interest-savings-accounts/
- https://www.cnbc.com/select/rule-of-72-what-it-is-how-to-calculate-it/
- https://www.forbes.com/advisor/investing/best-safe-investments/
- https://www.linkedin.com/pulse/how-get-12-returns-investment-fellofinance
- https://smartasset.com/financial-advisor/where-do-millionaires-keep-their-money
- https://www.investopedia.com/terms/t/treasurybill.asp
- https://www.forbes.com/sites/forbesfinancecouncil/2022/12/14/6-types-of-short-term-financing/
- https://finance.yahoo.com/news/10-return-investment-roi-141300511.html
- https://money.usnews.com/money/retirement/social-security/articles/average-social-security-benefit-by-age
- https://www.nasdaq.com/articles/5-things-you-shouldnt-do-when-your-savings-reaches-%24100000
- https://www.physicianonfire.com/how-to-invest-100k/
- https://www.fool.com/investing/how-to-invest/what-to-invest-in/
- https://www.bankrate.com/investing/low-risk-investments/
- https://www.bankrate.com/investing/best-ways-to-invest-1000/
- https://www.amortization.org/savings/100000/5
- https://money.usnews.com/investing/articles/best-stocks-to-buy-now-with-1000
- https://getmoneyrich.com/historical-returns-given-top-indian-stocks/
- https://www.debtfreedr.com/how-to-turn-100k-into-a-million/
- https://www.forbes.com/advisor/investing/best-low-risk-investments/
- https://slate.com/business/2014/03/life-expectancy-charts-this-is-when-you-re-going-to-die.html
- https://finance.yahoo.com/news/long-250-000-last-retirement-130049589.html
- https://www.gobankingrates.com/investing/strategy/how-to-invest-100-to-make-1000/
- https://www.nasdaq.com/articles/next-big-thing:-3-revolutionary-megatrends-to-invest-in-for-2024
- https://moneytalkwitht.com/blog/how-to-turn-10k-into-100k/
- https://lyonswealth.com/blog-details/how-much-money-do-i-need-to-invest-to-make-3000
- https://canvasannuity.com/blog/safest-place-for-retirement-savings
- https://www.investopedia.com/terms/s/shorterminvestments.asp
- https://money.usnews.com/investing/articles/best-growth-stocks-to-buy
- https://www.quora.com/How-many-percent-of-the-population-lives-that-80-years-old
- https://www.stash.com/learn/how-to-invest-1000-dollars/
- https://finance.yahoo.com/news/comfortably-retire-100-000-know-110152178.html
- https://www.boldermoney.com/blog/how-to-make-10-000-fast
- https://www.ameriprise.com/financial-goals-priorities/investing/3-tips-for-short-term-investing
- https://www.britannica.com/money/investing-i-bonds
- https://breakingintowallstreet.com/kb/debt-equity/debt-vs-equity-analysis/
- https://www.nerdwallet.com/article/investing/how-to-invest-dividend-stocks
- https://www.fool.com/the-ascent/buying-stocks/articles/got-1000-heres-an-easy-way-to-grow-it-into-10000/
