Best Way to Invest $1,000
Best Way to Invest $1,000
One thousand dollar doesn’t seem like a great deal of money to invest these days. But it’s a good sum to test different investment strategies which can lead to good habits that can help different individuals achieve their financial goals.
Here are three options to begin with in 2018.
- Invest to earn—Get a training certificate in a hot business to enhance your earnings capacity
When thinking of investments, we usually think of financial investments like stocks and bonds, which usually pay higher returns than investments in money market and CDs. But there’s one type of investment far more fundamental than that — the acquisition of educational and training skills that that enhance the earnings capacity in the marketplace.
To be fair, $1000 won’t buy you that much education and training. But it can buy you a certificate in one of the hot market areas. Like an A+ or MCSE training program, a Cisco Systems certification, or a content marketing certification that can enhance your technical skills.
There are all sorts of other professional certificates, too, for those who would rather work with people rather than technology. Like a bartender certification.
- Pay-down bad debt–save big bucks in interest payments
When it comes to debt, there’s good debt and bad debt. Good debt is amassed to buy goods and services that improve earning capacity. Debt accumulated to help pay for school, for example, or to prepare for a career, or to set up a business.
Bad debt is debt amassed to buy merchandise not really needed in the first place — like apparel, kitchenware, and club memberships that are never used.
Worse, bad debt usually carries financial charges and interest payments that make it grow exponentially overtime. Some credit cards charge an interest of 30%. This means that the outstanding balance doubles in 2.5 years!
That’s why cutting bad debt by $1000 could be the best investment you made in 2018.
- Invest in high earning bank CDs.
Bank CDs have been out of favor in recent years. For an obvious reason; interest rates have been extremely low, so CD rates are no match for alternative investments like stocks and bonds that have been rallying on those low rates.
But things have been changing recently with interest rates rising. That means that 2018 may be a year when financial markets could “revert to the mean.”
That means stocks and bonds may eventually correct, making CDs a good investment choice, especially for conservative investors who cannot afford the risks associated with investments in stocks and bonds.
Best Way to Invest $1,000 Conclusion
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