How to make money with 1000 dollars
If you are reading this, you probably have $1000 resting somewhere and you might be wondering how you can use that money to bring you even more money. What is the best way to invest that money? A lot of people are so clueless when it comes to ...
If you are reading this, you probably have $1000 resting somewhere and you might be wondering how you can use that money to bring you even more money.
What is the best way to invest that money?
A lot of people are so clueless when it comes to investing. This brings about some type of fear causing one to shy away from investing their money.
The reality is that there are so many opportunities available for you to invest your hard-earned $1000 that can yield you good returns. However, you need to be aware that all investments are risks therefore you should be prepared for whichever way the wind blows.
Below is a list of some ways in which you can make money with $1000;
Start a business
You probably have been having a business idea in mind that you believe will be successful. Why not then invest your money in making your idea into a reality? Here, you will use your $1000 as the startup capital to help you put everything in place, that is, renting out a place, buying your first stock of products, paying for overhead bills, etc.
If you are passionate about it and are ready to put in the work to make it a success then go ahead and make it happen. Whether you are selling online or offline, selling a product or service, ensure you carry out extensive market research before you invest in your money.
Peer to Peer Lending
This is a great way to make money passively. Thanks to the existence of willing lenders, peer to peer lending has become a common way of helping people raise the money they need. Individuals that choose to lend out their money usually earn a certain amount in interest from the borrowers. There are so many peer-to-peer lending platforms to choose from such as Prosper, Kiva, Upstart, Funding Circle and Lending Club.
The advantage of peer to peer lending is that your risks of investment have been minimized with system algorithms that do the vetting work on your behalf. Also, as an investor, you get to earn much more since this method cuts out the bank middleman; you can earn a lot from this method than you would from using a savings account. Lastly, it provides you with the feel-good benefit since you know that your money is helping someone or a small business come up.
Trade in the stock market
Stock trading is not for the faint-hearted and indolent. Well, if you are neither, then this is for you. Stock trading is where you can invest money and be able to earn within a short period. However, it requires one with a good understanding of all the different factors that influence the stock market.
If you decide to go this way there are a few things you are going to need. First, you will need to set up a personal brokerage account. This will come in handy as it comes with all the necessary tools you need to carry out comprehensive research. Secondly, you will need to set a stop-loss limit, this helps to prevent any potential significant depreciation hence save you money.
Real Estate Investment
There is a lot of money to be made from the real estate trade. 1000 dollars is not enough to help you put up a building but do not fret. You can still invest in real estate through Real Estate Investment Trusts (REIT) that will allow you to invest some money into a single real estate investment.
A Real Estate Investment Trust is a company that owns, operates, or finances income-generating real estate. The finances normally come from a pool of investors who then earn dividends from their investments.
The main advantage of using REIT is that you get to enjoy the benefits that come with real estate investing without the hustle of financing a project, being a landlord, or having to manage the property. There are so many available options to get you started in a REIT but the quickest and easiest is through Fundrise that allows you to start investing with even as little as $500.
Another way of making money through real estate investment is by flipping real estate contracts and you do not need much capital to start, $1000 is enough to make you money fast. With flipping contracts, you act as a broker. Your main role will be to identify willing buyers and sellers then bring them together and broker the deal.
It might seem like a lot of work initially but once you get the hang of it you will be on your way to becoming a mini-mogul in the real estate industry. Many successful real estate investors do this anyway.
Trading in Cryptocurrencies
Bitcoins, Ethers, Litecoin, these are all names that usually come up when talking about cryptocurrencies. Cryptocurrency trading has spiked in the recent past. Currently, we have over 3,000 cryptocurrencies in existence but only a handful of those are now relevant. This creates the first risk in this type of investment. You need to research extensively to help you determine the best cryptocurrency trading practice.
There are two categories in this market, that is;
- Fiat to crypto trading: this is where cryptocurrencies are traded against traditional fiat currencies
- Crypto to crypto trading: cryptocurrencies are traded against other cryptocurrencies only.
If you are only starting at this, then you should first start with the fiat to crypto trading option since it is done on regulated coin exchange and is super easy to understand.
There are so many easy ways in which you can make money such as having a side hustle, creating content on YouTube, working a 9-5 job, etc. However, being able to make money from $1000 can be quite risky and challenging especially if you think you will suddenly get rich overnight.
Therefore, start small, monitor your progress then you can work on scaling up. The most important thing is that you are choosing to invest your money regardless of the option you decide to go with.