We have an important announcement to make:
You do not have to be a millionaire to start investing!!!
You don’t even have to be a $10,000-aire to start investing!!!
Okay, so that’s not a word, but the point is still true.
It’s easy to think of investing as something only rich people do, but it’s just not true (and it makes a fun rhyme).
Honestly, you can start investing with as much money as you have to spare. $1, $10, literally whatever.
But, if you have $1,000 to spare, there are some money MOVES you can make to turn that $1,000 into lots more.
Here’s 5 ways to invest $1,000:
Invest $100 in 10 Different Stocks Using SoFi
SoFi is a great place to start investing — especially for beginners. What’s a portfolio? How do you diversify it? What do any of these terms even mean?!
SoFi figures out all the answers for you!
All you have to do is choose 10 different stocks to invest $100 into and — bam! — instant portfolio! SoFi makes it easy to spread your money out across whatever is most interesting to you.
Alternatively, SoFi has an “automated investing” option where they’ll build a portfolio for you! It literally couldn’t be easier.
As an added bonus, Susan has this magic code for you that will get you $50 in FREE stock when you sign up.
Make a $100 Loan to 10 Real Estate Investors
Groundfloor is basically crowd funding at it’s finest — but you’ll get your money back! Plus more!
Instead of taking out a loan from a bank, Groundfloor allows real estate investors to take out a loan from YOU (and other people like you). You contribute a small amount of money to the pot until the loan is fully funded. The real estate investor then withdraws the money and pays it back over time — plus interest.
The people borrowing get access to faster, cheaper, and more flexible capital than they would with a traditional bank and you get a short-term investment.
Yield ranges from 6% to 14% depending on the risk of the loan. Groundfloor assigns a risk category to each investment from Grade A (lowest rate of return) to Grade G (highest rate of return).
The higher the rate of return, the riskier the investment. This system makes it easy to tell what you’re investing in and how much money you’re likely to get back.
Plus, you get to be part of some cool renovation projects or real estate rehabs. Maybe you’ll even get to drive by a property you contributed to someday and think, “I invested $100 in that bad boy.” How fun would that be?
Become a Literal Real Estate Mogul
Real estate is one of the most sought after asset classes and now you — you!! — can start investing in it super easily. Gone are the days of having to be a professional investor in order to get started. SO cool!
Create an account with Fundrise, choose a portfolio strategy, and let them completely build and diversify a portfolio of real estate investments for you.
Fundrise keeps track of your initial investment and continues to find and add new assets to your portfolio over time without you ever having to do a thing. This gives you a lot of longevity — your portfolio will be stronger, your assets will grow over time, and the system is specifically designed to endure periods of economic instability.
Fundrise lets you track your assets, watch the market, and even see how your real estate projects are going. It’s an incredibly transparent process and made super easy and functional by a sleek and stylish app.
If you’re going to invest $1000, this is one of the best “do it for you” platforms out there!
Start a Retirement Account
Head over to Fidelity.com and start your Roth IRA account.
If you’re wondering why a Roth IRA and not a traditional, head on over to this super cool and helpful little article we wrote for you to answer that very question. It’s your best choice, we promise.
But, don’t just take our word for it right off the bat. Go. Read. And then come back. We’ll wait.
All set? Cool.
A solid retirement strategy is one of the best investments you can make early to set yourself up for total financial freedom later in life.
That’s why we recommend Fidelity. They give you total freedom over choosing and managing your investments while providing you with the tools you need to do so responsibly.
There are no account fees and no minimums to open an account. So, what’s stopping you? Get your money in that account and watch it start to grow.
Start a Health Savings Account (HSA)
In order to open a Health Savings Account, you have to have to be covered by an HSA-eligible health plan. Check with Nancy in HR if you’re not sure if that’s you.Traditionally, when you have a high-deductible health plan, you might also have the option of an HSA. If your employer doesn’t directly offer one, you can still open a separate HSA account as long as you have a plan that qualifies.
You contribute money to your HSA, which is supposed to help you pay for medical expenses like deductibles, copays, and all that other fun stuff your insurance doesn’t cover.
Your HSA balance rolls over from year to year, even if you change insurance or change jobs. This means that you never have to worry about losing what you’ve saved.
Not only is your HSA a medical savings account, but you get a triple threat of tax benefits:
- Your contributions are tax-deductible
- The money you spend is tax-free
- Growth is also tax free
It’s also possible to invest any “leftover” money in your HSA, which will make retirement WAY easier.
Again, we recommend Fidelity, as they offer accounts with no fees and no minimums, which will make your money go even farther. We love that.
No Time Like the Present
We know it never feels like a good time to tuck away $1,000 for safekeeping somewhere, but the sooner you get started, the sooner you can watch that money grow!
Get it out of your head that you need to have tons of money to start investing. Nope. You can (and should) start investing right now.
And, if you still need help figuring out your strategy for personal financial freedom? We got you.