The Best Way To Invest 1000 Dollars
Invest 1000 Dollars In Dividend Reinvestment Plans
We discussed Direct Stock Purchase Plans in our first blog entry; now that you can invest 1000 dollars you need to know about Dividend Reinvestment Plans (DRIP’s).
Dividend reinvestment plans are equity investment options offered directly from the underlying company. Instead of receiving quarterly dividends as cash, the dividends are automatically reinvested in the equity. DRIPS are our favorite way to invest 1000 dollars because:
- DRIP’s Force You to Save: Instead of receiving a check, the money you make automatically gets reinvested. Your consistently building your net worth without having to make the conscience decision to do so. Think of it as automated investing.
- DRIP’s Are Economical: Since you are purchasing directly from the company, your paying a reduced brokerage fee, if any fee at all.
Direct reinvestment plans are one of the easier ways to invest. After you buy DRIPs you can rest easy knowing the money will be used directly to buy more shares.
Invest In An IRA or Roth IRA
Making the decision to invest 1000 dollars in an IRA or Roth IRA is always a good one. Here is everything and more you could ever want to know about retirement investing.
Invest 1000 Dollars in a Friends Start Up
This is a bit more unconventional but if your a risk taker, there is major potential to make money by investing in a friends start up. Claim stakes in the business your friend is starting and decide on the amount of ownership your 1000 dollar investment will get you.
Of course there is a decent chance you may lose this money, but have hope my friend. The startup success rate is still relatively low, but if the business takes off your return on investment will be well worth the risk. Not to mention you would be doing a friend a favor. Experts are claiming we are in the midst of a golden age of start ups, take advantage of it.
Invest 1000 Dollars In Yourself
Yes you read it right, sometimes investing in yourself will pay off much more than literally investing money. Investing in education and self development can and will lead to more money in your pocket; learning is well worth 1000 dollars. Take an online course, whether it be through a university or through some other resource, you’ll thank me later.
Investing money in self development will increase your human capital and make you a more valuable asset to your company, play your cards right and that means more money in the long run.
Investing in a friends start up or investing in yourself are rather unconventional forms of investing, but don’t shy away from getting really creative and having some fun with it. Being able to invest 1000 dollars gives you the flexibility to do something unique, hell you could even make a hobby out of it.
Here are some unconventional, yet fun, ways to invest money.
- Buy Domain Names: The domain name gold rush may have passed but there are still people out there making a good deal of money buying and selling domain names.
- Coins: If you want to buy coins as a form of investment you better do your research. While this can be a fun, educational way to create some extra revenue, there is no shortage of sharks that will sell you a worthless coin for hundreds of dollars.
- Solar Energy: 1000 dollars wont make your home completely electric independent, but you can add some solar components that will provide free lighting. Making this initial investment will save you boat loads of money on energy for years to come.
If you have 1000 dollars free to invest, there is really no limit to what you can do with it. Any of the investments we have already talked about in previous blogs will certainly still work in this scenario. For the serious investor looking to make money we still recommend you invest that money in DRIP’s, there your best bet. At the same time we also encourage creative investing and having some fun with it. The choice is yours!
Well thanks for dropping in again and reading our blog.