How to Start Investing With $1,000 or Less: Tips and Tricks For Making Your Money Grow

Last Updated on June 1, 2021

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You can start investing with less money than you think! Even if you can only spare $1,000, there are many opportunities. But first you need to learn the tricks of the trade.

Start by doing your research! Make yourself an expert on the company, brand or product you’re investing in. The more you know the easier it will be to make smart decisions.

Try the Traditional Route …

Start investing $1,000 or less in traditional opportunities.

Sock it in Stocks

With a little bit of time and effort, turning 1k into 10k is possible with smart investments. Using apps like Robinhood.com or Public.com allows you invest in the market with $0 fees. You can even invest in big companies by buying portions of stock. 

Smaller companies and penny stocks can also yield impressive returns, but with a catch. If the company loses its momentum and flops, so does your investment. However, with $1,000 or less, it might not be the end of the world if the risk ate it all up. It may be the best way to tempt fate and hit the jackpot on a successful penny stock.

Robo-advisors are for those without the patience to sit and trade stocks throughout the day or week. Robo-advisors will invest your money using AI tech, picking the trades using algorithms that read the market. You’ll have to do a questionnaire first. When that’s complete, the robo-advisor will get you going.

CDs (not not the music kind!)

CDs could be a great way to start investing with just $1,000 or less, especially if you’re not in a dire need of cash. Though you won’t be able to take that money back before the allotted time (without paying a fee), the returns can be anywhere from 7-11 percent, or more annually. An extra hundred bucks a year with a $1,000 investment isn’t bad, especially if the bank is doing all the work.

Retirement Accounts

Trust us! It’s not too early to start investing in the future. You won’t see the returns for a while, but saving for retirement is essential if working a 9-5 until your 100 isn’t the life you’re looking for. Start with just $1000 and watch that money grow. You can keep adding to it, too. The retirement fund can either be your company’s 401(k) or 403(B), or your own Roth IRA.

REITs- Real Estate Investment Trusts

If you’re more interested in real estate but don’t think $1,000 is enough capital to get started, you’re wrong. REITs function like stock and can be purchased from stock exchanges through a brokerage firm. Investors can buy a stake in the commercial real estate market, buying or selling shares in companies that own and likely operate income-producing real estate. 

Try the Adventurous Route …

If traditional methods bore you there are some fun and interesting ways to start investing $1,000 or less.

Crypto (to the moon!)

Cryptocurrency has become a mainstream investment opportunity, especially for Gen Z and millennials. With small amounts of capital, crypto can help secure massive gains. With low-cap cryptos or alt-coins, turning $1,000 into $10,000 is very possible. Of course, this can take a while. Dogecoin, one of the most popular altcoins, was selling below a penny for over two years. Then, in January, the price skyrocketed unexpectedly and investors won big. Other times, altcoins don’t go anywhere and the investment is fruitless.

Larger coins can also help you win big. Coins like Ethereum and Bitcoin have their ups and downs but are safer investments. Safer doesn’t mean guaranteed. So be careful. Try to buy when the crypto dips.

Collectibles

If you’re not interested in playing the market but want a way to start investing, collectibles could be your best bet. Trading cards like Magic: The Gathering and Pokémon or first-edition comic books have made millionaires out of everyday folk. Buy rare collectibles and hold on to them until supply diminishes, then head to eBay, Etsy, or even a comic convention and make some killer deals. You can also trade collectibles, earning more expensive pieces to those who can’t live without yours.

Digital Land

Digital land is arguably one of the newest investment opportunities, but things are already looking good. Online real estate on sites like The Sandbox or Decentraland is selling for big bucks.

What is it? Virtual plots of land can be bought and sold for use in the digital world, either for building video games or other kinds of virtual events. Big companies and independent developers can use the land to make fun experiences for players, but there’s a limit to the available plots. Snatching up plots during land sales can reap big rewards, especially if people are willing to buy those plots from you at double or even triple your original investment.

With $1,000 or less you can win big. You just need to know how to start.