As mentioned above, $1,000 is not exactly a small sum, and blowing it away is certainly not an option. That's our problem number one. The second problem is that the normal conventional channels of investments such as stocks, mutual funds, life insurance, investments funds and real estate, certainly do not come in at a 1,000 dollar price. So, what is the best way to invest $1,000? Here is where one asks, what is the best way to invest 1,000 dollars. Unconventional options, such as investing in gold and silver can of course be used for the same, and believe me, blowing off the grand on a Saturday evening is not the only option (well, I would prefer the later, but I cannot give you ill advise about money, can I?). Thus the motto is go 'unconventional'.
About Small Investments
'The more you invest the more you get' is a harsh and annoying truth about several investments that are safe and are not tagged as the high yield high risky ones. Now, when you invest a sum which is as small as $1,000, the options are, but of course, limited, and you will not be able to calculate a rate of return or return over investment. In the investments, that have been included in the following list, you will not be able to ascertain the exact rate of return, however let me warn you it is bound to be a bit low. Though such a sum won't exactly help you to make a fortune, there are some really easy and in some cases, best ways to invest 1,000 dollars. In some cases, your investment will help you with your future expenses. Hence, you won't get a return on investment, however you will find that you have some reasonable extra cash in your wallet every month.
How to Invest 1,000 Dollars?
Here are some rewarding investment options which you may take up with just $1,000. Note that, several of these investments, don't seem attractive at first, however if you think about them a bit, you will notice that some of these investments are great...
- Term Deposits with Banks: A term deposit is basically a deposit, wherein the total amount of $1,000 is deposited into the bank's account for a specified term, such as, 1 years or 15 months. This kind of account rewards an interest at a fixed rate, however you cannot withdraw before the maturity of the term, without losing the interest. Hence, just sit back and at the end of term enjoy the interest. You also have the option of reinvesting the said amount immediately.
- Gold or Silver: Sounds a bit absurd, but with $1,000, you can invest in gold or silver, physically or through some investment certificate. Gold or silver tend to give a relatively good rate of return and yield. One option that has proved to be really good in recent past is that, if one buys physical gold or silver in the form of bullion and sells it at the right time in future after say about 5 years or more, then earning a handsome profit is quite easy. The time and price of sale or purchase is crucial and selecting the right one earns you a great yield.
- One Time Funds: There are certain funds like the mutual funds, which have a one time investment policy, that is you invest in the money and forget about it. The fund matures after a certain time period or the term, upon which you get back your money, plus the returns. The drawback is that the term of the investment is quite long of say about 5-10 years, and even more in certain conditions. Your decision in coming with the best long term investments for you is certainly going to be affected by your requirements such as time for which you want to invest money for.
- Back Garden Farm: This one worked really good for me and some of my neighbors. If you have big good backyard or garden, then you can make it into a great miniature farm. Cultivate some vegetables with hybrid seeds, or even better get a chicken coop, with of course chicken in it. With this setup, you will end up saving a ton of money in the next couple of years.
- Penny Stocks: Stocks which are valued to be below a limit of $10, are known as penny stocks, with the $1,000 in hand, we can invest in a variety of different stocks. With the help of some basic stock market investing guidelines, a bit of an analysis of your own, you can trade in the market to generate some great returns.The only disadvantage is that there is probability of risk that is involved in the process.
- Solar Energy: One of the best investment in 2011 which would help you to save a substantial amount of money is to install some solar energy equipment, such as a solar panel for electricity or heater. Some small solar energy consuming apparatuses such as a solar cooker can also be put to use. In the longer run, you will end up saving a lot of money.
- Bonds and Accounts: There are several schemes such as IRA's, government and treasury bonds, that can be used as an investment destination. In fact, such destinations are some of the best ways to invest money, the obvious reason being that the investment and yield both remain assured and safe.
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