How to invest $1,000: Seven Recommendations for Beginners


There are several ways to invest $1,000. This amount is not a big one, but in some cases may lead to high rewards in the future. If you are still thinking about where to place your $1,000, read this post.
It is not enough just to know where to put this money in order to achieve profit. You need to learn best practices as well.
Investing in stocks and other instruments
If you prefer to do all your investments on your own, you can take a glance at some online trading marketplaces such as TD Ameritrade or E*TRADE. There are plenty of other brokerage companies that may attract your attention. Before you place your first order, you need to choose a company that suits you. Finding the best company is not as easy as it sounds, but after doing some online research, you can handle this on your own.
Important note: if you are looking for some instruments that you will invest in your $1000, you may consider Exchange-Traded Funds. They cost less and may give you several diversification benefits.
Lending money to earn interest
You can invest your amount in lending and have some interest from the borrowers. The p2p lending business gains momentum currently and offers some exciting opportunities for lenders.
How does this business work? You can lend an amount to borrowers via special online service gathering together those who have money and those who need some cash for any reason. Lending Club is one of those platforms.
What type of services you may enjoy by choosing such websites? You are given a set of tools or notes that help you to choose reliable borrowers.
Important note: never forget about risks. Like any type of investment, lending is risky and may lead you to losses.
Find a Robo-advisor to manage your cash
Those who have money and want to invest in some projects, but do not want to do it on their own, have an option to hire a robo-advisor. Such services create automated algorithms helping people to manage their investments. Before you start using it, you can pass a written interview to determine your risk tolerance level and some other important criteria.
Those automated advisors are designed for the masses as they offer low or even zero account minimum.