9 Smart Moves to Make With $1000 In The Bank

9 Smart Moves to Make With $1000 In The Bank

What can I do with this $1000?

This could be mind-boggling as tons of investment ideas run through your head. In an actual sense, there are so many things one can do with that amount of money.

As exciting as it is to have a $1000 in the bank, if one is not careful, one may not be able to get a proper account of how it was used.

The point of the article is to suggest ways to invest $1000 and have some returned benefits. While $1000 might not look like much money, there are many ways you can make it do a lot for you.

Key Highlights

🎯 Having a side hustle is a good way of earning extra income monthly from your investments.

🎯 Micro investing is very popular among young people, it’s a way to make investing easy and manageable.

🎯 Micro-paying your debts help lower the interest rate of your debts.

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🎯 56% of workers are enrolled in a workplace retirement plan.

SEE ALSO: 12 Online Side Hustles That Will Pay an Extra $1000 Per Month (And How To Start)

SEE ALSO: 12 Part-Time Night Jobs That Pay $1000 Per Month

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1. Pay off your debts

Nothing makes us sad faster than remembering you have debts to pay. The unfortunate part about having debts is they earn interest every day, and it affects your earning power, it starts getting weak.

Debt is one of the factors holding us from saving and building wealth. If you cannot switch to a low-interest rate plan, it is better to start paying them off as soon as possible.

Use your $1000 to pay off some of your loans and get closer to a debt-free life.

Before you start paying off your debt, make sure you choose the best method that allows you to pay your debt and not let your other needs suffer.

2. Start a retirement plan.

Don’t underestimate the power of micro saving and compound interest.

Micro savings are for people with limited income, it helps them save small amounts of money consistently over time.

A $1000 does not sound like much for a retirement plan. If you continue to micro-save consistently like this in addition to compound interest, you are looking at a fat check when you retire.

The few benefits of micro saving are that it offers privacy, higher rates, safety, simple and faster access to funds, and removes the strain of needing a lot of capital to save.

3. Start a Side hustle.

The best thing about many side hustles is it requires little income to get started.

With $1000, there are many side hustles you can start today. The best part about having a side hustle is if you build it the right way, it will not affect your day job, and you can earn a good amount of money every month.

You can either start your own side business or join a service that pays you for working part-time for them. I must say, a good side hustle is one you can grow into a business one day.

Here are some side hustles you can start with $1000.

• Sell goods on eBay.
• Flip used goods and sell them.
• Join a service like Upwork and Fiverr and sell your skills.
• Start a blog.
• Start a Youtube channel.
• Freelance writing
• Sell digital products and many more.

4. Investing In Real Estate.

Honestly, $1000 is a tiny amount for investing in real estate. To invest in real estate properties, you need thousands of dollars. Or do you?

Fortunately, there is something called real estate crowdfunding. Real estate crowdfunding is the use of online media like social media platforms to raise capital for investment.

They are Real Estate crowdfunding services that would allow you to invest as little as $500. With this little investment, you become a shareholder in a Real Estate property.

5. Invest in Crypto

Having an extra $1000 in the bank might just be the kick you need to learn about crypto and how to invest.

Bitcoin is one of the popular ones, so you can start with it. There are many free and paid resources available today that will teach you everything you need to know about cryptocurrency.

You can use popular exchanges like Binance and Coinbase to purchase cryptocurrency.

6. Start investing in Stocks.

It is never too late to start investing in the stock market. I must warn you; you must gain a good education about the stock market before investing real money into it; to avoid losing your money out of ignorance.

You don’t have to spend so much money to start investing in the stock market. There are companies available today that will help you start investing with very little capital.

Investment, in general, can be risky, so gaining the right knowledge can save you from a lot of loss.

You can start micro-investing with services like Robinhood and Acorns. Please invest wisely.

7. Start an Emergency Fund.

How amazing that feeling is when you run into a serious emergency and remember that you have a stashed away emergency fund.

When you get the idea of having an emergency fund, you may first think the idea is silly or not necessary until when something goes wrong, and you are left helpless.

Many things can go wrong, the loss of a job, medical emergencies, or unexpected bills.

Trust me if there is one thing we can predict is that things can always go wrong. We might not know when or how things would go sideways, but we know it can happen.

With an emergency fund, you know when things go sideways; you can count on funds to pull you out.

8. Apply for Life Insurance

This act is a bit downhearted, but we can’t rule it out. This act is one way you can be sure that when we no longer exist on this earth, our families are good financially.

Taking out Life insurance can look a bit sad, but if you look at it in terms of taking care of your family or paying off your debt after leaving this earth, you begin to see a  better picture.

Life insurance can be expensive, but recently companies are making it more affordable. For example, a company like Bestow, a Life Insurance company, offers life insurance for as little as $10 a month.

Life Insurance can help your family in many ways, so with an extra $1000 in your bank account, it will be wise to take out life insurance.

9. Invest In Your Friend’s Business

You may not be the type of person who wishes to start a business, but if you have a friend planning to start or has a small business, this may be a good time for you to approach them and talk about investing in his small business.

With your extra $1000, you can make a micro-investment in your friend’s business in hopes that when it succeeds, you will reap the benefit.

There are a few things you need before going ahead with this process.

• First, you need to think like an investor, not as a friend.
• While you have to consider the emotional side since this is your friend. You have to think logically and analytically before investing your money.

You have to see some promises about the business’s success because when you lose your money, you can’t get it back.

Final Thoughts

While $1000 could be the beginning of building great wealth, there are many ways you can use it to create and support many things. If you plan to invest it, make sure you gain some financial education first to avoid losing your money to ignorance.