How to Invest 1000 Dollars: 15 NEW Strategies for 2024

by Fiona Smith
Updated April 2, 2024

Disclosure: This post may receive compensation from partners listed through affiliate partnerships, at no cost to you. This doesn’t influence our ratings, and the opinions are our own. Learn more here.

If you have a spare $1,000 and want to know how to best invest it, then this blog post will help you do just that.

The most important trick to optimizing your $1,000 is to have a game plan ready.

Without a game plan, chances are, you’ll spend the money in a few days.

So, if you’ve been wondering how to invest 1000 dollars with a solid plan of action, you’ve come to the right place.

Keep reading.

Sneak Peek: Top 3 Ways to Invest $1,000

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3 Things to Consider Before You Start Investing

Before you start investing your $1,000, it’s important to prepare yourself for your investing journey.

Here are 3 things you should consider before you start investing.

1. Do Your Research

You’ll hear me say this many times:

Always do your research.

Even if you’re 100% sure you want to invest in something (whether it’s a stock, index fund, or real estate investment), please make sure to take the time and do your proper research.

That’s because fraud attempts in the financial services industry are up 149% in 2021.

Source: CNBC

There are bad people out there, and they’re not afraid to go after your money.

And even though this article can help answer your question on what to do with a thousand dollars, it’s still your responsibility to do further research before financially committing.

Trust me, your bank accounts will thank me later.

2. Determine Your Risk Tolerance

Every person is unique.

And that’s also true when it comes to your risk tolerance.

Risk Tolerance Definition: Your risk tolerance is the amount of risk that you are willing to take in exchange for earning a potential higher return.

There is a potential to increase your return if you take higher risk because:

The lower the risk, the lower the return
The higher the risk, the higher the return

Below are some guidelines that could help you make a decision:

Take More Risk	Take Less Risk
You are young	You are nearing retirement
You have a stable income and job	Your income is not guaranteed
You are healthy	You spend a lot on medical bills
You don’t have high-interest debt	You have high-interest debt
You have other sources of income	You are the primary breadwinner
You don’t have impulse purchase decisions	You have impulse purchase decisions
You have extra investments and cash	You don’t have money saved

The chart above is not comprehensive, but it should help give you some guidance on when it might be appropriate to increase your risk or decrease your risk.

3. Plan and Prepare

Ultimately, before you start investing, it’s important to be prepared.

“By failing to prepare, you are preparing to fail.” – Benjamin Franklin

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And that’s the point of this section – to help you prepare before you start investing.

Here are some common financial goals that you may want to accomplish before investing:

Develop a budget
Pay off high-interest debt
Build an emergency savings fund

Consider if you’ve already achieved these goals.

If you haven’t yet, then it’s probably a good idea to open a savings account or pay off debt first.

Regardless of your next steps:

Do your research
Determine your risk level
Consider your financial goals

…Before you start investing.

15 Best Ways to Invest $1,000

Here are the 15 best ways to invest $1,000, all of which you can implement today to build your wealth.

Let’s get started!

1. Pay off High-Interest Debt

Fiona's Rating

 5/5

Paying off Debt
Risk Level	Low Risk
Who Should Do It	If you have high-interest debt
Why It Makes Sense	You save money because you don’t pay high-interest rates anymore
How to Start	- Pay online - Call your customer service agent
Best Resource	Upgrade Debt Consolidation

Before you even think:

“What can I do with 1000 dollars”

The first thing you should do is think about the debts you owe.

Remember, there are 2 main types of debt: Bad debt and smart debt.

Bad Debt	Smart Debt
High-interest debt (typically 10% or more) Debt used for depreciating assets	Low-interest debt Debt used for appreciating assets

If you find that you carry high-interest debt, like credit card debt, then your first thought should be “how can I get out of debt fast?”

Pro Tip: If you have multiple high-interest rate debts, then you may want to consider paying them off either via the snowball method or via the avalanche method.

As a quick refresher, I’ve listed the differences between the 2 methods below:

Snowball Method	Avalanche Method
Pay off the lowest balance first	Pay off the highest interest rate first

Financially speaking, it makes more sense to pursue the avalanche method, because you’ll save more money paying off the debt with the highest interest rate first.

However, the snowball method may be better if you have a hard time getting and staying motivated.

That’s because with the snowball method, you pay off your smallest debt first, even if it’s “just” $50.

Seeing your first successfully paid off debt can be a huge motivation and that can help many of us keep up the momentum.

What if you still have debt leftover?

If you find that there’s still debt leftover after making your $1000 payment toward that debt, it’s time to think about a few other options – like debt consolidation.

Here’s roughly how debt consolidation works:

As you can see, debt consolidation is a way of combining all of your different debts into 1 basket and then just making 1 payment.

Debt consolidation simplifies things for you.

Caution: Debt consolidation is only a temporary fix. Keep in mind that consolidating your debt does not eliminate the behavior that brought you into that debt position.

One service that can help you consolidate your debt is Upgrade 👇

Upgrade

With a debt consolidation loan through Upgrade, you can borrow $1,000 to $50,000. Funds are sent directly to the account that you choose within a day of approval.

Learn more

Upgrade gives you:

A fixed-term
A low fixed rate
A clear pay off date
No prepayment fees
Affordable monthly payments

This can translate into savings while eliminating the surprises of high-interest rates that can change at any time.

2. Build an Emergency Savings Fund

Fiona's Rating

 5/5

Emergency Savings Fund
Risk Level	Low Risk
Who Should Do It	Anyone who doesn’t have an emergency savings fund
Why It Makes Sense	You have cash in case you need it, so you don’t have to take on high-interest debt
How to Start	- Enroll online
Best Resource	Axos Bank

So what can you do with 1000 dollars?

If you don’t owe high-interest debt, the next step is to consider increasing your emergency savings fund (if you haven’t already).

Emergency Savings Fund Defined: Your emergency savings fund should be in cash (aka readily accessible) and equal to about 3 to 6 months’ worth of your living expenses.

In other words, if it costs you to live on $2,000 per month, then your emergency savings account should be funded with:

Minimum = $6,000
Maximum = $12,000

Your emergency savings fund should be:

Cash
Liquid
Easily accessible

Why is it so important to have an emergency savings fund ready?

That’s because 40% of Americans struggle to come up with just $400 to pay for an unexpected emergency expense!

Source: CNBC

So what if you feel like saving up for 3 to 6 months’ worth of living expenses is something that just doesn’t seem attainable right now?

That’s OK!

Try to take it in baby steps.

Here’s how I would try to structure my goals if I wasn’t able to save a large chunk of money:

Emergency Fund Goals
Goal for Month 1	$300 in total savings
Goal for Month 2	$600 in total savings
Goal for Month 3	$1,000 in total savings
Goal for Month 6	$3,000 in total savings
Goal for Month 12	$6,000 in total savings

If you’re able to save $1000 in the short term (roughly 3 months), that’s already a huge win!

Pro Tip: When you do need to withdraw your emergency fund cash for an emergency expense, your immediate next goal should be to build up your emergency fund again.

Here’s a trick:

Don’t just keep your emergency fund money stored in a regular bank savings account, where you earn virtually 0% interest on your cash.

Instead, think about storing your cash in a high-yield savings account (aka a savings account that has higher interest rates) so you earn more money on your cash.

My favorite high-yield interest account is Axos Bank 👇

Axos Bank

No monthly maintenance fees. No minimum balance requirements. Interest compounded daily.

Learn more

If you’re struggling to save enough money for your emergency savings fund, then you may want to consider creating a budget.

3. Purchase Level Term Life Insurance

Fiona's Rating

 4/5

Level Term Life Insurance
Risk Level	Low Risk
Who Should Do It	If you are relatively young and healthy and have: - Kids (or plan to have kids) - A great career path ahead of you - Partner who is dependent on you for income - Debt (student loans, mortgage, credit card, etc.)
Why It Makes Sense	Term life insurance is cheap, simple and it’s a good insurance option for young professionals who want to insure for a specific period (typically 20 to 30 years)
How to Start	1. Apply online or in-person (phone call) 2. Get a free quote 3. Start medical underwriting to see if you qualify for insurance 4. Sign paperwork to put your policy in-force 5. Pay your premiums on time
Best Resource	Policygenius

If you want to know what to do with a thousand dollars and you don’t have life insurance yet, then read this section.

Hear me out: Life insurance isn’t always a scam.

In fact, having the right amount of level term life insurance has several benefits, including:

It helps your beneficiaries pay off debt
It reduces financial stress on your beneficiaries
It replaces your income upon your death (this is good for your partner)

Pro Tip: Another neat fact about level term life insurance is that the death benefit is tax-free.

Yet, only 54% of American adults carry life insurance, and many of those adults often don’t carry enough life insurance.

Source: Policygenius Life Insurance Statistics

The fact of the matter is this:

Not all life insurance is created equally.

There are indeed some life insurance types that probably aren’t in your best interest (I’m thinking whole life insurance).

However, as a general rule of thumb, for young professionals, term life insurance is typically a good life insurance product, when comparing the cost vs. the benefit.

Level Term Life Insurance Defined: Level term life insurance locks in your life insurance premium for a set term (typically between 20 to 30 years). If you do not pass away during this term, then the term expires and your life insurance benefits end.

Here’s a quick translation into plain English for you:

Life Insurance Jargon	Definition
Premium	The amount of money you have to pay each month (aka your bill)
Term	Specific time frame
Level	Your premium (aka your cost) will not change, even if you become unhealthy down the road

Level term life insurance is the cheapest and simplest type of life insurance, which is why it often makes sense to purchase for young professionals and millennials.

Why?

Because young professionals and millennials are typically:

At their healthiest (so premiums are lower)
Don’t have $1000’s to spend on expensive whole life policies

Pro Tip: You’ll typically want to buy life insurance that’s about 10x to 15x your annual salary.

Keep in mind that if you are a young professional and at the beginning of your career, your income might increase significantly over the next few years, which you may want to factor into the equation.

Pro Tip: Typically speaking, most young professionals in promising career tracks may want to consider applying for level term life insurance for a death benefit between $500,000 (on the very low end) to $2,000,000+.

Most millennials I see apply for $1,000,000.

A $1,000,000 life insurance policy could cost you anywhere between $14 to $30+ a month, depending on your health.

Even if you’re not ready to buy a life insurance policy yet, I highly recommend that you run a free quote with Policygenius 👇

Policygenius

Policygenius provides free quotes tailored to your needs with support from licensed agents, helping you get insurance coverage fast so you can get on with life.

Learn more

Policygenius is one of the best online life insurance marketplaces that matches you with the best life insurance company.

With Policygenius, you can run free quotes, compare prices, and ultimately talk to a representative to determine how you can move forward.

Recommended reading: How Much Life Insurance Do You Need

4. Invest in Your 401(k)

Fiona's Rating

 5/5

401(k)
Risk Level	Low Risk
Who Should Do It	Anyone who has access to a 401(k) and an employer matching contribution
Why It Makes Sense	Earn free money when you contribute to your 401(k) plan and your employer makes a matching contribution
How to Start	1. If you have access to an employer-sponsored 401(k) plan, start making regular contributions 2. Research how much you have to contribute to earn the full employer match (call your HR department if necessary)
Best Resource	Blooom

Another one of my favorite 1000 dollar investment ideas is to put your cash to work in your 401(k).

In fact, 401(k)’s are retirement plans that can help you become a millionaire.

As of 2021, a whopping 412,000 401(k) plans reached a balance of $1 million or more.

Talk about building wealth!

Source: CNBC

Of course, it also helps that the 2021 markets have been doing really well, which surely was another contributing factor for the increase in 401(k) balances.

However, the point is that you can build significant wealth in your 401(k).

401(k) Definition: A 401(k) is a tax-advantaged retirement plan that is offered by most employers. Employees can contribute a portion of their wages and employers can make matching contributions to your 401(k), too.

In other words, if you have access to a 401(k) plan through your work, then the first thing you want to do is to:

Call your HR (human resources) department
Ask how much your employer matching contribution is, if any

Why am I so focused on an employer matching contribution?

Because employer matching contributions is virtually like free money for you.

Employer Matching Contributions Definition: An employer matching contribution is when your employer contributes a certain percentage of your salary to your 401(k) plan. How much your employer contributes depends on how much you contribute.

Does the definition sound confusing?

Here’s a real-life example:

401(k) Example
Salary	$50,000
Your Annual 401k Contributions	$2,000
Your Contribution Percentage of Salary	4%
Employer Matching Contribution	Employer will match 50% of your contributions, up to 6% of your salary
What this Means	Employers will contribute up to 3% of your salary total
Maximum Annual Employer Contribution to your 401(k)	$1,500

In the example above, you just earned a “free” $1,500 from your employer – just because you made a contribution to your 401(k) plan that was over 3% of your salary.

Pro Tip: Each 401(k) plan is different, so make sure you read into your 401(k). In some cases, your employer might not give you a match. In other cases, employers may give up to an 8% of salary match.

We just spent some time talking about the importance of making a contribution to your 401(k) – especially if your employer offers a matching contribution.

Now, what?

The next step is investing in your 401(k).

Pro Tip: Each 401(k) plan has unique investment options, so make sure to review your 401(k) contract or call the Human Resources department to request a copy of the fund options you can invest in.

In general, you’ll want to consider your risk tolerance (aka your comfort level with how much money you plan to invest in the stock market) and your age.

Below is an example of investment allocations:

What if you’re not 100% comfortable with picking your own stocks?

One option is to open an account with Blooom 👇

Blooom

Blooom is working to make retirement possible for everyone, no matter the size of their account.

Learn more

Blooom is your robo advisor when it comes to investing in your 401(k).

All you have to do is connect Blooom with your 401(k) account, (and there are instructions on how to do that).

Then you’ll have to answer a few questions, and from there, Blooom will help manage your investments and keep you on track to meet your goals.

Some things that Blooom can do for you include:

Analyze the market
Pick and place trades
Create a financial plan
Do the research for you
Rebalance your portfolio
Alert you in case of withdrawals
Customize your own investment strategy

However you decide to approach investing in your 401(k), just make sure to start contributing early – and take advantage of any matching employer contributions.

That’s free money for you.

5. Invest in Yourself

Fiona's Rating

 5/5

Investing in Yourself
Risk Level	Low Risk
Who Should Do It	Everyone
Why It Makes Sense	The more you learn, the more you earn
How to Start	- Read a book - Take an online course - Connect with a mentor
Best Resource	Udemy

In my opinion, you can never go wrong with investing in yourself.

In fact, I believe one of the best investments is investing in yourself.

When you invest in yourself, you’ll earn the highest ROI.

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And don’t just take it from me.

96% of self-made millionaires invest in themselves by reading every single day to:

Improve their career
Improve their education
Focus on self-improvement

Source: Kiplinger

You don’t have to be smart, and you don’t even have to go to college to become successful.

What you do need, however, is:

Focus
Discipline
Consistency
Commitment
Determination

Never stop learning, because the universe never stops teaching.

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Are you ready to take on the next step and grow your skillset?

Then check out one of the world’s leading education platforms, Udemy 👇

Udemy

Udemy is an online learning and teaching marketplace with over 183000 courses and 40 million students.

Learn more

You can take Udemy courses ranging from:

Music
Python
Marketing
Web Development
Personal Development

My favorite course is probably the MBA course, which you can buy for just over $100 versus spending $100,000’s, if you attended a university.

If you’ve ever heard of Eminem’s song, “Lose Yourself,” then you might have remembered the last line of the song, which is “you can do anything you set your mind to.”

And Eminem is right.

If you want to build your skills and your income, then look around you, because the resources and the tools are all there for you.

Now, it’s just up to you to go and get them.

6. Invest in Low-Cost Index Funds

Fiona's Rating

 5/5

Low-Cost Index Funds
Risk Level	Medium Risk
Who Should Do It	Anyone who is interested in building long term wealth without day trading
Why It Makes Sense	- Proven results - Reduces your stress level - Passive investing approach
How to Start	1. Open a brokerage account 2. Link your bank account to your brokerage account 3. Transfer money to your brokerage account 4. Start investing in low-cost index funds
Best Resource	M1 Finance

Believe it or not, investing doesn’t have to be sexy.

In fact, studies have proven time and time again that investing in passive, low-cost index funds is how you can build long-term wealth.

Take a look at this picture, comparing the net performance of hedge funds versus a low-cost index fund (the S&P 500).

Source: SL Advisors

While hedge funds might boast they outperform the market, that information tends to be misleading.

Why?

Because hedge funds charge astronomical fees.

Did you know? Most hedge funds charge between a 1.5% to 2% annual management fee (based off the assets under management) AND a fee between 16% to 20% based on any profits earned.

Only after the roughly 22% in fees (2% + 20%) is paid out to the hedge fund, do you see your net return.

If you’re looking for the cheapest index fund options, then below are some of my favorites that I’ve used personally:

Fund Name	Expense Ratio
Fidelity ZERO Large Cap Index	0.000%
Vanguard S&P 500 ETF	0.030%
Schwab S&P 500 Index Fund	0.020%
SPDR S&P 500 ETF Trust	0.095%

Take a look at how cheap these investments are versus what you would be paying if you hired a hedge fund:

Index fund expenses: 0% to 0.095%
Hedge fund expenses: 17% to 22% +

So how do you start investing in low-cost index funds?

By opening a free investment account with the popular platform M1 Finance 👇

M1 Finance

M1’s easy-to-use tools enable you to develop an investing strategy that’s right for you.

Learn more

M1 Finance is a robo-advisor with more than 6,000 stocks and funds to choose from to build your own, customized portfolio.

Here’s some fast facts about M1:

Fees: 0%
Account minimum: $100 for regular accounts
Account minimum: $500 for retirement accounts

If you’re ready to invest your $1000 or at minimum an amount greater than $100, then you might want to check out M1 Finance.

7. Invest in Real Estate Crowdfunding

Fiona's Rating

 4/5

Real Estate Crowdfunding
Risk Level	Medium/high Risk
Who Should Do It	- You want to diversify your investment - You want to earn a passive income stream - You want to protect yourself against inflation
Why It Makes Sense	Real estate crowdfunding could help you earn a high return, passive income, and diversify your portfolio
How to Start	1. Open an account 2. Transfer money 3. Select your investments
Best Resource	Fundrise

Real estate investments are often left to the exclusive, high-roller club.

These are the guys that have $100,000’s or $1,000,000’s to spend on property deals.

However, real estate crowdfunding platforms like Fundrise have made it accessible to everyone, not just the top 1%.

Real Estate Crowdfunding Defined: Investors pool their money together to raise capital for real estate investments.

Oftentimes, you play the role of the bank by lending out your money – and you know how much money banks can make.

In fact, Fundrise claims that you can earn an annualized return between 7.31% to 16.11%.

Check out the chart below:

This chart illustrates how private real estate deals with platforms like Fundrise, have a relatively low risk for relatively high returns.

Not only do you earn a passive income stream from rents paid, but you can also earn a profit through property appreciation, once the real estate is sold in the future.

Of course, the trade-off is locking up your money for a long time.

Below are a few additional pros and cons for real estate crowdfunding:

Pros	Cons
Invest in individual properties without having to manage the properties	Higher risk
You can diversify your portfolio	Illiquid
High-profit potential	You may not see profits until years after you originally invested
Potential for passive income	Many real estate deals are typically restricted to accredited investors

Keep in mind that investing in real estate is one of the top strategies used by the wealthy.

Now you can too, for as little as $10, with Fundrise 👇

Fundrise

Fundrise is the first investment platform to create a simple, low-cost way for anyone to access real estate's historically consistent, exceptional returns.

Learn more

Fundrise typically invests your money in:

Apartments
Commercial
Single-family

As with all higher-return / higher-risk investments, make sure you do your research before you financially commit.

Recommended Reading: Fundrise Review

8. Invest in Your Legacy

Fiona's Rating

 5/5

Your Legacy
Risk Level	Low Risk
Who Should Do It	Everyone
Why It Makes Sense	Protect yourself, your estate, money, and your loved ones by putting a plan in place
How to Start	Draft your basic estate documents online
Best Resource	Trust & Will

One of the most overlooked investments is your legacy.

While no one likes talking about their own mortality, it’s necessary to set up a plan now, because life will throw us curveballs, as we know it.

Even millionaires are lacking in the estate planning department, with only 62% of millionaires having created an estate plan.

Source: CNBC

So what actually is an estate plan?

Estate Plan Definition: An estate plan is preparing for your end-of-life procedures.

Some examples of estate planning could include:

Drafting or updating a Will
Designating your life insurance beneficiaries
Preparing how your assets are to be distributed
Listing who will receive your favorite watch and jewelry

Why is estate planning so critical?

Here are some reasons why estate planning might be the best way to invest $1000:

Peace of mind
Minimize taxes for your beneficiaries
Protect your kids by designating a guardian
Protect yourself in the event of a health situation
Prevent family drama by clearly specifying which items you want which beneficiary to receive

Pro Tip: It is recommended to update your estate documents once every 5 to 8 years or when you move to a new state.

Below are some of the most important estate documents that everyone should draft – even if you’re not a millionaire yet:

Will
Living Will
Guardianship Documents
Durable Power of Attorney

…And here is what these foreign terms mean in plain English:

Estate Planning Term	What it Means
Will	Document that specifies where you want your assets (like your car, your bank accounts, etc.) to go upon your passing
Living Will	Communicates your end-of-life wishes, especially when you are mentally incapacitated (e.g., whether you want to be kept alive artificially)
Guardianship Document	Designates guardians for your children. This document is typically found in a Will
Durable Power of Attorney	Designates an individual (whom you trust) to step in and make decisions on your behalf in any aspect of your life – from finances, to family, etc.
Durable Power of Attorney for Health Care	Designates an individual to take care of you in the case you become mentally incapacitated (might be someone different from your Durable Power of Attorney)

If you designate individuals to take care of you, it is typically a good idea to have a conversation with them before you sign your estate documents.

In very rare instances, the people who you want to take care of you may not actually want to be put in that position (like making medical decisions on your behalf).

Believe me when I say that estate planning is necessary.

If you haven’t started drafting your basic estate documents yet, then check out Trust & Will 👇

Trust & Will

Trust & Will is one of the nation’s leading online estate planning companies.

Learn more

Trust & Will is going to ask you a few questions about your family and financial situation so that it can automatically draft your customized estate documents.

Pro Tip: As your estate situation gets more complicated (e.g., you own a business, you have multiple properties, etc.), then it’s probably a good idea to work with a physical estate planning attorney and not draft your documents online.

If your estate is still relatively simple, then you might want to check out Trust & Will.

9. Invest in Your Budget

Fiona's Rating

 5/5

Budgeting
Risk Level	Low Risk
Who Should Do It	Everyone
Why It Makes Sense	- Track your income - Track your expenses - Improves your financial situation
How to Start	- Use Excel - Use YNAB
Best Resource	YNAB

Believe it or not, budgeting can make or break your financial future.

If your goal is to:

Pay off debt
Build an emergency fund
Save enough money for retirement

…Then a budget will probably be one of the best tools you can have in your financial toolkit.

Here’s what I like about budgets:

They tell you how much you’re earning
They tell you how much you’re spending
They tell you how much you are spending on certain things

There are some basic budgeting rules of thumb that you should probably know:

Budgeting Rules
Monthly housing debt	< 28% of gross monthly income
Total monthly consumer debt	< 20% of net monthly income
Total monthly debt payments	< 36% of gross monthly income
Retirement & savings	> 20% of gross monthly income

Examples of monthly consumer debt include:

Lines of credit
Cash advances
Credit card debt

Examples of monthly debt include:

Car loan payments
Mortgage payments
Credit card payments
Student loan obligations

While these rules of thumb are of course not set in stone, and things always tend to vary, they are a good starting point if you’re just starting out your budget.

Now, there are several ways that you can start the budgeting process.

Some of these include:

Mint
Excel spreadsheet
You Need a Budget

My favorite is the Excel spreadsheet, but not everyone is an Excel nerd like I am 😁

So, if that’s the case, you can always consider using Mint (which is free), or you can consider downloading YNAB (which is also free to download) 👇

YNAB

Budgeting with YNAB isn't restrictive. It's flexible and custom-fit to your priorities, not the other way around.

Learn more

YNAB is a really good budgeting tool, if you’re just starting to get an oversight of your financial picture.

It’s visual, and it actually shows colors, like red, if you’ve already overspent on 1 goal.

There is a learning curve with YNAB, but this tool can help you save a lot of money – especially if you have no idea what’s going on, in your financial life.

Below are some stats with YNAB:

First time YNABers say they’ve saved $600+ in their first 2 months
First time YNABers say they’ve saved $6,000+ in their first 12 months

Recommended Reading: YNAB Review

10. Invest in Repairing Your Credit

Fiona's Rating

 5/5

Repairing Your Credit
Risk Level	Low Risk
Who Should Do It	Anyone with a FICO® credit score less than 700
Why It Makes Sense	The higher your credit score, the more money you save
How to Start	1. Research the best credit repair companies 2. Connect with your favorite one 3. Determine the steps you need to take to repair your credit
Best Resource	Credit Saint

If you’re wondering how to invest $1000 and make more money down the road, then you might want to consider increasing your credit score.

Your credit score is based on several factors, including:

Payment history
How much debt you have
The number of credit inquiries
Length of time your accounts are open
The number of times you close credit cards
The number of times you open credit cards

You would have an acceptable (but not great) FICO® credit score with a minimum of 670.

It’s important to keep a high credit score because you can save money in the long run.

Benefits of a high credit score:

Lower car insurance rates
Increase negotiating power
Lower interest rates on loans
Lower interest rates on credit cards
Improved chances for loan approval

As you can see, there are many benefits that come with a higher credit score – specifically, a higher credit score helps you save money.

So how can you start repairing and increasing your credit score?

Believe it or not, there are some companies that specialize in credit repair and can help you boost your credit score, like Credit Saint 👇

Credit Saint

Top Company in challenge inaccurate credit data - Get a Free Credit consultation today.

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Credit Saint has been nationally recognized as one of the leading credit repair companies.

Pro Tip: It could take a few months before you start seeing results, so make sure you are patient in the process.

The key is to chip away at your debt and follow the plan that the credit repair company creates for you, and chances are, you’ll start seeing progress.

11. Invest in Cryptocurrency

Fiona's Rating

 3.5/5

Cryptocurrency
Risk Level	High Risk
Who Should Do It	If you have “fun money” and can withstand the volatility of the cryptocurrency markets
Why It Makes Sense	You can make a lot of money in a short period of time. You can also lose a lot of money in a short period of time.
How to Start	1. Open an account 2. Transfer your money 3. Start trading
Best Resource	Gemini

If you’re wondering how to invest $1000 and you:

Don’t have debt
Have life insurance
Have a solid emergency fund
Are investing in your retirement
Are already investing in the stock market

…Maybe now is the time to consider investing in cryptocurrency.

Cryptocurrency Defined: Cryptocurrency is a digital currency that cuts out the middle man (e.g. banks, credit cards, etc.) and transactions are verified immediately through a decentralized technology (aka blockchain technology).

Here’s my full disclosure:

I wasn’t a major fan of investing in cryptocurrency until I learned more about it.

Now, I’m slowly getting used to the idea of investing in a digital currency and am getting more comfortable seeing the market value fluctuate so much.

Pro Tip: Never tie up 100% of your liquid money into 1 cryptocurrency. That’s like buying 100% of 1 stock – there is no diversification and plenty of risk.

That being said, take a look at some of the pros and cons of investing in cryptocurrency:

Crypto Pros	Crypto Cons
Massive profit potential	Extremely volatile
Hedge against inflation	Unregulated
Improved liquidity	Hard to understand

I’d say my biggest concern with cryptocurrency is that it’s relatively new, so crypto doesn’t really have a solid track record yet.

That being said, there certainly are cryptocurrency millionaires and other success stories, which show that a cryptocurrency investment could create massive amounts of wealth for you.

So, if you’re willing and comfortable investing in something risky, then you may want to check out Gemini.

12. Invest in a Roth IRA

Fiona's Rating

 4/5

Roth IRA
Risk Level	Medium Risk
Who Should Do It	If you have earned income and expect to be in a higher tax bracket during retirement
Why It Makes Sense	Pay taxes on your Roth IRA contributions today (because you will likely be in a lower tax bracket during retirement)
How to Start	1. Open an account 2. Transfer your money 3. Start investing
Best Resource	M1 Finance

Roth IRAs are a great way to invest for your retirement – on a tax-advantaged basis.

Roth IRA Defined: A Roth IRA is an individual retirement account (IRA) that helps you save money on an after-tax basis.

That means you pay taxes on your contributions today in exchange for not having to pay taxes on your withdrawals (and any investment profits) during retirement.

Keep in mind that you can withdraw your contributions to your Roth IRA at any time without taxes or penalties (since you already paid taxes on your contributions).

Caution: If you withdraw any of the earnings (aka investment profits) before you reach 59.5, then you may owe income taxes and a 10% penalty.

There are some exceptions to this rule, but I won’t go into the nitty-gritty for the sake of this blog post.

You would qualify to contribute to a Roth IRA if you:

Have earned income
Are 18 years or older
Don’t earn too much money (there are income restrictions)
If you are under 50, you can contribute up to a maximum of $6,000
If you are 50 or older, you can contribute up to a maximum of $7,000

Now, if you’re ready to pull the trigger and invest into a Roth IRA, you may want to consider opening a Roth IRA with M1 Finance 👇

M1 Finance

Build your own retirement strategy and maintain it easily with M1’s IRAs.

Learn more

M1 Finance offers customized investment portfolios (also known as “pies”).

The minimum investment with a M1 Finance Roth IRA is $500, and the platform charges $0 in trading fees or money management fees.

Below is an example of how M1 Finance’s custom pies will look for you:

You’ll be able to select your investments from 6,000+ stocks and funds.

13. Invest in Your Local Businesses

Fiona's Rating

 4/5

Local Businesses
Risk Level	Medium Risk
Who Should Do It	Anyone who already has a solid financial plan in place and is looking to diversify their investments
Why It Makes Sense	- Earn passive income - Diversify your portfolio - Support your local community - Protect yourself against inflation
How to Start	1. Open a free account 2. Link your bank account & transfer money 3. Start investing in local businesses 4. Never pay a cent in management fees
Best Resource	Mainvest

Assuming your financial plan is solid, another good way to invest $1,000 is to invest in your local businesses.

You can start investing in small business ventures for as little as $100 with Mainvest 👇

Mainvest

The investment marketplace for Main Street businesses and local investors.

Learn more

Mainvest offers investment opportunities around the country.

Did you know? Mainvest investors are never charged a fee.

Mainvest earns its money from the businesses that are on the platform.

Some business examples that you’ll find on Mainvest include:

Bars
Farms
Restaurants
Hobby stores
Dispensary stores
Brewing companies

Note that Mainvest focuses on brick-and-mortar businesses, which means that you’ll invest in only tangible businesses and not in non-tangible companies like software start-ups.

Here’s why you might want to consider investing in small businesses:

Sense of pride
Helping your local economy
You earn a passive income stream

The amount of income you can earn with your Mainvest investment really depends on the individual business contract you have.

Thankfully, Mainvest is transparent with their data, so you can see how much money you can earn just by browsing their website:

The amount of money you can earn is based on the revenue share number.

Revenue Share Definition: A revenue share is when a business decides to share a percentage of its profits with its investors.

Some businesses may decide to pay investors more from their earnings, while some businesses elect to pay less – that’s completely up to the individual business.

Pro Tip: You probably won’t be paid a revenue share for life (typically, the amount of revenue share that you earn from the business is based on the amount of money you invested up front).

For example, if you invested $100 in a business, then the business may elect to pay you back 2x your original investment.

The maximum amount of money you might ever earn is $200.

Nevertheless, I think diversifying your investments and supporting your local community can be a way to get ahead financially.

Recommended Reading: Mainvest Review

14. Invest in Fine Art

Fiona's Rating

 4/5

Fine Art
Risk Level	Medium Risk
Who Should Do It	- You have a solid financial plan - You want to diversify your investments - You want to earn a high return
Why It Makes Sense	Fine art has seen stable returns for the past few decades – often north of 100%
How to Start	1. Open a free account 2. Complete a phone interview 3. Start investing in fine art
Best Resource	Masterworks

Typically, the world of fine art investing is exclusively available to the high-rollers.

Now, you might be wondering:

How can the average Joe partake in high-end art investing?

Enter Masterworks 👇

Masterworks

Purchase shares in great masterpieces from artists like Pablo Picasso, Claude Monet, Andy Warhol, and more.

Learn more

Masterworks is the world’s first fine art investing platform that makes this type of alternative investment available to everyone.

Just a few years ago, fine art paintings were only available to the ultra-wealthy.

Not anymore.

Take a look at this $128 million art painting by Jean-Michel Basquiat – which is available for people like you and me to invest in.

Why fine art investing?

One of my top reasons is that fine art does not have a correlation with the stock market.

So when the stock market goes down, your fine art investment will either go up or stay stable.

This correlation chart shows that when the stock market goes down (which is portrayed by the red S&P 500 Total Return bar), the contemporary art market does not go up or down.

Markets, based on the graph, that are influenced by the stock market include:

Gold
US housing
Global equities

Pro Tip: If you want to invest in something that is independent of the stock market, then investing in artwork could be a good choice.

The economic environment does not appear to influence the value of artwork, so an art investment could preserve your overall net worth in a recession.

Not only that but typically speaking, fine art also provides high returns: 13.6%.

Caution: Keep in mind that fine art investing is a long-term commitment.

In general, your money will be locked up between 7 to 10+ years before you see a profit (which is when Masterworks sells the paintings).

Recommended Reading: Masterworks review

15. Start a Side Hustle

Fiona's Rating

 5/5

Side Hustle
Risk Level	Low/medium Risk
Who Should Do It	Anyone who wants to earn a little extra money
Why It Makes Sense	- Build a passive income stream - Could earn a full-time income stream
How to Start	1. Think about your passion 2. Ask a mentor for some guidance 3. Do your research on side hustle opportunities

If you’re thinking about what to do with a thousand dollars, then I highly suggest you consider starting a side hustle.

A side hustle is something that can transform your life (it sure did for me).

Below are some reasons for and against a side hustle:

Pros	Cons
Earn extra income	Can be exhausting
Increase your experience & knowledge	Added stress
Evolve into full-time income	You won’t see immediate results
Flexibility	You have to put in a lot of hard work
Your income is unlimited	Your employer may not allow you to have side income

As long as you’re allowed to have a side hustle at work, for me, the pros outweigh the cons by far.

Side hustles can change your life for the better because you can:

Learn new skills
Build an income stream
Potentially become self-employed
Expand your professional network

Especially after COVID hit the world and after the Great Resignation took shape, about 45% of Americans (70 million people) who are still working also maintain a side hustle.

Source: Bankrate

And, believe it or not, you can make money with side hustles that can have a serious, positive impact on your life.

Check out these side hustle statistics below:

Depending on the niche you are in, you could even transform your side hustle into a potential full-time job.

The opportunities are endless.

Are you ready to start your side hustle?

My very first income-generating side hustle was my social media account (go figure!).

It cost me virtually nothing to start and within less than 12 months, I was making $1,000’s each month… and you can too.

Related: How to Make Money on Twitter

Here’s when the social media side hustle might be right for you:

You love writing
You’re good with technology
You want to build a 6-figure business
You enjoy connecting with your audience
You like working from home (or anywhere other than an office)

If you want to fast-track your way to social media success, check out X Mastery 👇

X Mastery

Discover the exact methods I used to gain 265,000+ followers and $100,000s in income from X.

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Wherever your journey takes you, just make sure you put in the hard work now.

You’ll reap the benefits later.

Build a Diversified Portfolio

The 2 keys to wealth include:

Investing for the long-term
Building a diversified portfolio

We’ll explore why long-term investing is critical in the next section, but for now, I want to take some time to explain why a diversified approach could be the best option for you.

Diversified Portfolio Definition: You invest in multiple things (30+ investments), which could include stocks, real estate, education, a business, etc.

If you’re a nervous investor who doesn’t like seeing the value of your investment portfolio fluctuate (ie, you don’t want it to swing up and down), then a diversified portfolio is very likely the best approach for you.

Take a look at how investing in the stock market – specifically using a diversified approach – can lower your risk and volatility:

Source: S&P

Here’s a quick breakdown of what you can see in the image above:

Diversified Portfolio [S&P 500]	Undiversified Portfolio [1 Stock]
Much less volatility & more stable, consistent returns over 26 years	More volatile and returns are not as consistent as a diversified approach

I should mention, however, that a diversified portfolio may not provide as high of a return as undiversified portfolios (remember, the more risk, the more potential reward).

Pro Tip: In the end, whether you diversify or decide the best way to invest $1000 is to invest it all in 1 stock, depends on your comfort with risk.

Some additional things to consider, when wondering what to with 1000 dollars, is to diversify your asset classes.

Some examples of asset classes include:

Cash
Currency
Real estate
Stock market
Alternative investments

Why do most investment advisors (and keep in mind, I’m not an investment advisor), recommend diversifying?

In case 1 asset class goes down in value (like stocks), another asset class holds its value or increases in value (like fine art or real estate).

Focus on the Long-Term & Start Now

Since we already discussed the idea of diversifying your portfolio in the previous section, let’s focus on the importance of investing for the long-term and starting now.

Here’s what I mean by long-term investing:

Term	Definition
Long-Term Investing	You stay invested for 30+ years without making withdrawals

If you’re in your:

20’s
30’s
40’s
50’s

…Or even if you’re in your 60’s, just before retirement, I would highly encourage you to start investing now and start investing for the long term.

Why should you invest for the long term?

I’ve listed several pros and cons below:

Long Term Investing Pros	Long Term Investing Cons
Takes advantage of compounding interest	You won’t see immediate results
Decreases volatility	You reduce your liquidity because you’re not withdrawing money for decades
Utilizes the power of dollar cost averaging	Dollar cost averaging might not take immediate advantage of market lows or highs

If you’re patient and focused on the long-term, then you can weather the highs and the lows of the stock market.

Based on historical performance, the stock market has increased in value after a decline.

So while it’s inevitable that you’ll see lows in the stock market, you’ll also very likely see highs after the lows.

You just have to weather the storm.

If you think passively and if you don’t follow the stock market every day (I’d suggest checking in every month or quarter), you’ll likely be much less:

Stressed
Anxious
Nervous
Inclined to withdraw money

A key to successful investing is thinking passively.

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Remember to stick with your investment strategy (yes, even if the markets are going down) and focus on the long term.

FAQs

What should I invest $1000 in?

If you’re looking to invest $1,000, then you may want to consider some of the following suggestions:

Roth IRA
Cryptocurrency
The stock market
Term life insurance
Emergency savings fund
Real estate crowdfunding
High-interest credit card debt

These are just some of the ways you can optimize a $1,000 investment.

How can I invest 1000 dollars for a quick return?

If you want a quick return on your money, then you’ll likely incur a higher risk when you invest your $1,000.

Here’s how you can invest 1000 dollars for a quick return:

Start day trading
Invest in a single stock
Invest in your education
Consider flipping real estate
Invest with real estate crowdfunding

If you’re prepared to live with more risk in exchange for a quick return, then you should consider the strategies listed above.

How can I double my 1000 dollars?

It’s important to understand that doubling $1,000 will very likely take time and patience.

Below are strategies you could use to potentially double your $1,000:

Invest in cryptocurrency
Invest in your education
Invest in your own business
Invest in real estate for a passive income
Invest in your 401k to receive the employer matching contribution

If you want to know how you can double your money since yesterday, I’m going to warn you that there are going to be a lot of risks involved and you may lose your money.

How should a beginner invest $1000?

If you’re a beginner and have a spare $1,000 to invest, there are several ways you could invest your cash to optimize your return.

Some of those strategies include:

Invest in your education
Pay off high-interest debt
Increase your emergency savings fund
Invest in real estate crowdfunding apps
Invest in cryptocurrency by opening an account with Coinbase
Invest in the stock market by opening an account with M1 Finance

There are many options you can pursue to invest your $1,000 – these are simply just some ideas.

Closing Thoughts

Before you receive an unexpected chunk of money – like a $1000 bonus – it’s a good idea to create a plan, so you know exactly what to with 1000 dollars.

Remember that most people go broke – or at minimum never invest their extra money – after coming into unexpected cash.

Don’t be like the average individual.

An effective way to optimize your money could be to:

Understand your short term financial goals
Understand your long term financial goals
Create an according game plan

Once you have your game plan in place, all you need is to implement the 1000 dollar investment ideas that I suggested in this article.

Your bank accounts will thank me later.

What would you do with an extra $1,000? Let me know in the comments below.

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How to Invest 1000 Dollars: 15 NEW Strategies for 2024

In this article

Sneak Peek: Top 3 Ways to Invest $1,000

Fundrise

Masterworks

Arrived

3 Things to Consider Before You Start Investing

1. Do Your Research

2. Determine Your Risk Tolerance

3. Plan and Prepare

15 Best Ways to Invest $1,000

1. Pay off High-Interest Debt

Upgrade

2. Build an Emergency Savings Fund

Axos Bank

3. Purchase Level Term Life Insurance

Policygenius

4. Invest in Your 401(k)

Blooom

5. Invest in Yourself

Udemy

6. Invest in Low-Cost Index Funds

M1 Finance

7. Invest in Real Estate Crowdfunding

Fundrise

8. Invest in Your Legacy

Trust & Will

9. Invest in Your Budget

YNAB

10. Invest in Repairing Your Credit

Credit Saint

11. Invest in Cryptocurrency

12. Invest in a Roth IRA

M1 Finance

13. Invest in Your Local Businesses

Mainvest

14. Invest in Fine Art

Masterworks

15. Start a Side Hustle

X Mastery

Build a Diversified Portfolio

Focus on the Long-Term & Start Now

FAQs

What should I invest $1000 in?

How can I invest 1000 dollars for a quick return?

How can I double my 1000 dollars?

How should a beginner invest $1000?

Closing Thoughts

Unlock the Secrets to Modern Wealth