How to Invest Your First $1,000

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How to Invest Your First $1,000

This video is sponsored by Skillshare

It’s already an achievement to save $1000 dollars but if you’re like most people it might seem like a scary time to start investing. Too many people think you need to be rich to start investing but the reality is that investors can build long-term financial flexibility by investing small amounts of cash over time. There are a number of possibilities to invest in and it might seem overwhelming but in this video, I hopefully can narrow down some investment options that can help you get started investing your first $1,000.

Number #1 - Invest in yourself

Take that class you always wanted to take or buy that course you can help you in your career. Consider investing that $1000 in yourself to start your business, get an education, or get a real estate license.

Number #2 - Start with Debt

There probably isn’t anything that you can invest in that will generate more funds than your interest debt will take from you. Debt should be considered an investment in that the more you bring down your monthly payments the more funds you can put towards other investments to generate more income for your future.

Number #3 - Invest in an IRA

If you don’t already have a workplace retirement plan or any plan that doesn’t allow you to add money to it, consider an individual retirement account. There are two basic types of IRAs, a Roth IRA and a Traditional IRA. A traditional IRA is tax-deductible and earnings grow tax-deferred however a Roth IRA is an after-tax-deductible where withdrawals are penalty-free and earnings grow tax-free.

Number #4 - Open a High Yield Savings Account

According to GOBankingRates’s 2019 savings survey, “The economy might be strong in the US, but nearly 70 percent of Americans have less than $1,000 stashed away.” It’s already an achievement in itself to have $1,000 stashed away, but if you need quick access to that stash quickly whenever an emergency happens, then a savings account is going to be your best option. Many high-yield savings account offer high-interest rates so they pay you for using their savings account.

Number #5 - Invest in Stocks

With $1000, you can invest in the stock market, which is my personal favorite. When you invest in stocks, you want to remain diversified. Index Funds such as the S&P 500 are a great way to start as they are an instant way to diversify your portfolio with exposure to a number of different companies at a fraction of the cost.

There are also exchange-traded funds or ETFs which “are baskets of different types of investments that are pooled together into a single entity, which then offers shares to investors that are subsequently traded on major stock exchanged.” Individual stocks are also a great way to control which businesses you own, unlike with an index fund.

If you plan to purchase individual stocks, take the time to study up on a business’s finances and check out their competitors, you are after all buying an ownership stake in a business.

$1000 might not seem a lot to generate a substantial amount of wealth, it allows you to learn which investments work for you and get you in the habit of saving. Your $1000 can be the beginning of a profitable journal towards long-term wealth.

Sources:

NOTICE OF RISK: Content is for News & Entertainment purposes only. Do not make accounting, legal, business, personal or financial decisions based on content provided. ALWAYS CONSULT A PAID PROFESSIONAL. The content provided is owned and expressed by ORIGIN, LLC, a multimedia company. Andrew Cartwright is an employed personality and is not LEGALLY responsible for the following content. The information provided is the opinion of Origin, LLC. Always do your own research and always make your own decisions. STOCK MARKET, BUSINESS, AND REAL ESTATE HAVE HUGE RISK.

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So original and so helpfull 4 the people like us,
The
Beginner persons.
Danks so much for this oportunity !

sorinsalvetz

Just subbed in you other 2 channels ago just minutes ago, thanks bunches for these amazing ideas..

lorilange

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TheCompanyofEagles