Ways to Invest your First $1000 Saving

Investing your money to make higher returns is one of the brightest ideas you are probably thinking right now. Yes, managing such amount is not easy because you are creating an idea about where and what is the best ways to spend it with promising interests. Many choices are already available but you should be wise and smart in engaging with those offers. Investing in a right business with the right people in a right time should be your considerations before giving out your $1000, especially, if you are a citizen of the United States. This is because investment offers are rampant in the US. In addition to this, you should be able to know the money returns you will get and how safe the methods are, because scam is everywhere and sometimes unavoidable.

This article is inspired by an USA Today article, first job, first pay check and first budget.

Investing your money that will begin at $1000 can be turned into millions when you engaged yourself with the right decision opening available ways of investments. Because of rampant investments offered in the market today, you should choose your investment ways depending on your personal preferences.

I’d like to start with a brag about my decision to invest in P2P loan instrument. P2P loans are investment you make by lending money to individual borrowers. The same way you loan out to relatives and friends. The difference is, you give small amounts to various borrowers, which is managed by loan brokers (Prosper, lending Club, etc). Brokers take commission on every sale and also a percentage of lender’s earning.

My Investment with Prosper grew by 6.72% in last one year. Compare that with savings account rate of less than 1% or a three year CD rate of 1.6%. P2P lending is little more riskier than those options but it’s not as much as in stocks. Below is the snapshot of my Prosper investment gain. If you are interested, apply for a Prosper loan here.

A high return investment without a risk of losing your money is a must have in every investment portfolio. You can start with a little money, I started with only $500 and let it be there for 3 months before raising to $1000. It took almost 6 months to invest $5000. We just got our first home, that’s why I can’t investment more money right away.

Best ways are mentioned below and thinking about one of the choices is a great idea, especially, when higher money interest and return are your goals in investing.

Where to invest your first $1,000

If I were you, based on my experience so far with various investment options, I’d pick P2P lending just because gain ro risk ration is highest. compared to stock, bonds, CD’s and MF’s. But here are all the options you have.

• Investing in a certificate of deposit. Probably the safest option. Bank deposit like this, is one of the safest methods you can do with your money because you are somehow protected and you know where your money is. This kind of investment is covered by insurances such as the FDIC. The good thing is that you can check your savings anytime you wish to do so. The certificate of deposit assures anybody that higher interest or return of the money is ranging between months to five years. You can get the interest rate efficiently,however, waiting can be the initial downside of this kind of investment.

• Engaging in Mutual Funds. Stock investments are one of the best methods of investment you should be thinking right now. Yet,investing your  $1000 can be accompanied by problems.However, there are available choices you may opt to choose. Opening an account with a nice stock mutual fund is the answer. Mutual funds are managed by securities. A sales commission from investments is not deducted. Before engaging in any kind of mutual funds, you should read and understand the fund brochure so that additional financial problems can be prevented.

• Online Investments. One of the best and accessible ways in investing your money is through online. The good thing about this type is that you are not required to go online and minimal risks are involved as well.You can simply say that you have chosen the right online business for you to engage. One of the best online investments is the Electronic commerce and Trading.  Through this kind of investment, money returns are seen with lower risks. You can earn without interfering your daily. You can even hang out with your friends and feel relaxed without any worries about your investments. Sales page are involved in this kind of investment. It is automatic by simply collecting the money while delivering the product you posted or offered on your online sales page.

• Business involvement. The riskiest of all. This is one of the best traditional ways in investing your money. Unlike other investments, you are the manager of your own business and higher money returns are in your hands; as well as how you will manage your business. On the other hand, putting up a business as one of your investments is not easy. This is because of the tendency of losing your capital. Absence of business partners is also one of the possible hindrances for anyone who is wishing to put up a business. Starting a business with a capital of $1000 is possible by simply engaging and investing in a small business with potential returns such flower shops or tire repair, depending on your idea.

Engaging yourself in investment should be accompanied, not only with your capital and resources, but also with perseverance. Successful people who invested in a certain investment choice have used their critical thinking and ability to make decisions in order to climb the competitions.

If you are interested in investments, I recommend that you should read some books regarding investing or how to accumulate income faster.

Reading books that are allotted to financial concerns are also helpful, especially, when you are planning to become one of the most successful people in the industry. As a final tip, you can also browse some websites that cater all your investment concerns.

They can give you a clearer picture about the ways you want to get involved. Asking another person who recently engaged in money investments can also be one of your options.