Saving our money is one of the most assured ways of opening opportunity for future investments. It is the catalyst that allows us to be able to participate in lucrative endeavors and have that chance to possibly grow it to desired proportions.
While creating the opportunity to be able to invest is important, it is just as important to know where to place that money once it’s acquired. So many times we make the mistake of saving a large sum of money and then allocating it to risky, potentially harmful acquisitions.
Moreover, we may accidentally designate our money to someone that contains little experience or knowledge within that field, furthering the potential risk on the investment.
Because of this, it is important to be informed in the different opportunities that surround our daily lives to be able to safely allocate this accumulated portion of money towards something profitable. To better become more aware of potential investments, I have constructed 10 different strategies which have proven to work in my own life, as well as those around me, to produce gainful outcomes.
1. Invest in Index Funds (ETFs) (QQQ, VOO, VUG)
Investing in index funds is one of the most assured ways of safely growing your money in the stock market. Imagine a basket with all of the high preforming stocks within a specific sector. This is essentially what index funds are, and have proven to be a very effective way of participating in the overall growth of the stock market.
Not only that, but some also provide dividends. Through what is known as DRiP (Dividend Reinvestment Program) those dividends can be safely allocated back into the stock that they were generated from, allowing you to participate in compound interest.
Included below are some of the index funds I have invested in, which have proven to be lucrative even within the first year.
- QQQ (+52.10% over the past year)
- VUG (+50.40% over the past year)
- VOO (+45.60% over the past year)
As investors, we are obsessed with finding the best way to diversify our portfolios. What better way to diversify, than to acquire a basket of stocks which tracks a broad array of high preforming investments?
2. Buy and Sell Highly Desired Items with Low Supply
If you’re someone who is looking for a quicker way of compounding your money into something much greater, this is the route for you. This idea has potentially no limit to how far you take it, and proves to compound in returns over time.
The concept of this topic is to find items which are highly desired, however there isn’t enough supply to go around. As of today this includes items like…
- Nvidia 30-Series Graphics Cards
- PlayStation 5 Consoles
- Xbox Series X Consoles
These are just a few examples of lucrative items which I have used in my own life. I have seen many examples of other items like these which contain the same potential, depending on your surrounding opportunities.
Graphics Cards have become a very profitable endeavor, as they go for around $600 MSRP and can be resold on eBay for $1300. As you can see, these cards are highly sought after, and if you can get your hands on one, you practically have a $700 bill in your hands.
3. Designate Your Money to a Licensed Financial Fiduciary
I understand that a lot of people may not have the time to be able to actively be seeking out some of these ideas, so why not allow someone else to do it for you? Seeking out a licensed financial fiduciary to invest your money is one of the most passive, minimal risk strategies anybody can make.
Although these advisors take a fee from anything gained, investors can feel confident in knowing that their money is in a safe place as well as put away towards their future. The sooner that you put away your money, the more potential that money has to grow overall in the future.
When deciding who to leave your money with however, make sure they are both experienced as well as trustworthy. It is just as much your duty to make sure your investment values align with theirs when inevitably making this decision. After all, we are in the business of making money, not losing it!
4. Use the Money to Push Another Business Agenda
If you’re more of an entrepreneurial spirit with a knack for allocating resources towards a larger goal, this idea is for you. Using the $1000 which you have worked so hard for is a great way to push any business endeavor towards its true potential.
For example, If you are someone who builds computers to make more money, you may decide to spend some of the money you saved to market your skills to those around you. Business cards, marketing, or creating more inventory, are all great ways to push your business.
Moreover, this could be a great opportunity for you to BEGIN a side hustle if you haven’t already. There are so many profitable things you could begin to dedicate your time towards including…
|Starting a YouTube Channel|
|Creating a Podcast|
|Designing and Writing a Blog|
All of these not only have huge potential should you stay consistent, but also provide lots of fulfillment the more you produce and create.
5. Open a Roth IRA (Tax-Deferred Account)
Opening a Roth IRA is a great way to invest if you’re someone who is planning on putting your saved income away for a long time and allowing it to grow into something monumental for your future.
A Roth IRA is a tax-deferred investment account, meaning you get to participate in investment growth while at the same time avoiding any fees that are associated with withdrawals. This includes tax and penalty fees that are induced upon withdrawal.
The only criteria to be able to withdrawal without being exposed to these fees is that you must be after the age limit that the brokerage requires and withdrawals must be taken after already being invested for five years.
If you would like to dive deeper into the benefits and criteria of opening a Roth IRA, take a look at Charles Schwab’s information HERE.
This option should be highly considered by all as tax deduction from investment earnings proves to be a large hindrance on profits when the time comes that you will actually be using this money. Protect your money and your future through a Roth IRA!
6. Begin Investing in Real Estate Through REITs
Not all of us are able to invest in large amounts of tangible assets like real estate, however there is a way to invest in real estate in a smaller portion. Early investors have found that they too can have a slice of the proverbial “property pie” through something called a REIT.
REIT stands for “Real Estate Investment Trust“. While there are many different forms of REITs, an overall summary of them is that as an investor in the company, you too get paid out for rent collected on properties.
For example, say you are someone who invested in a company who specializes in commercial buildings. Any rent that is due to them through their tenants will be designated to you as well, depending on how much of the stock you own.
As you can imagine, this is a great way to begin to delve into how real estate works, and is another opportunity to watch your saved money grow, especially because a majority of REITs also include large dividend opportunities.
7. Acquire Items Which are Undervalued and Sell Them for More
Similarly to finding items which are high in demand but low in supply, this is another opportunity to buy and sell assets. Starting out with your $1000 dollars will allow you to accumulate a large amount of inventory to begin your “snowball”.
There are items all over the internet which are drastically undervalued and can be picked off without many knowing. Through searching “Auctions” on eBay, I have been able to drastically undercut the TRUE value of what an item should sell for and then double my profits through listing it at a “Buy it Now” price.
This is largely the case especially in the trading card market. If you are able to find and hold onto some of the most desired trading cards, the value of them will inevitably rise over time.
When looking for items that can be quickly turned over for a profit look for…
- Trading Cards (Sports Cards, Pokémon Cards, Yu-Gi-Oh Cards)
- Graphics Cards (NVIDIA GPUs)
- Gaming Consoles (Nintendo Switch, PS5, Xbox Series X)
Not only trading cards but NFTs seem to be producing the same types of results. Investors have been allocating their money towards NBA Top Shot moments, which are quickly raising in price as the demand for them increases.
8. Attain Education That Will Generate Income
$1000 can go a long way if dedicated towards the right knowledge. There are highly desired skills that people are looking for that prove to pay out in large sums.
For example, you may decide that you would like to learn more about coding and dedicate a portion of your saved money to gaining the necessary knowledge needed to be able to embark down this journey.
With your new found coding knowledge, you can start to pick up freelance jobs for companies that need software engineers or maybe even begin to create another profitable side hustle.
Growing your available knowledge is a great way to become more useful to the people around you. The more useful you can become, the more that you will inevitably earn!
9. Pay off Debts in Order to Gain More in the Future
Paying off your debt is a great way to free up more cash in your life. It allows you to allocate a larger portion of your earnings to things that begin to pay YOU instead of paying other people.
Because of this, paying off your debt with your saved money is actually a great way to allow it to grow. With the extra income that you will earn from paying off your debt, you can dedicate a larger portion of it towards your investments.
Not only that, but it will allow you to feel more financially free with your money, instead of feeling tied down to obligations to others. A great book which explains how covering your debts first is a great way to accumulate wealth and ensure your future success is George S. Clason’s The Richest Man In Babylon, which dives even deeper into this concept.
Once you have paid off this debt and are ready to allocate your money elsewhere, I highly suggest taking a look into my article which embarks upon how to dedicate where your money goes through creating allocated percentages. You can find that article HERE.
10. Become an Investor in an EXPERIENCED Colleague’s Endeavor
Becoming an investor in a profitable business idea is a great way to grow your money. Some business ideas others are apart of prove to be very intriguing, especially if you know that you don’t have any special knowledge or connections within the industry.
Notice how I stress the EXPERIENCED portion of the heading above. While it can be easy to be convinced by a friend or family member to designate your money towards something they are doing, it is crucial that you only give your money to the people who are trustworthy and have a proven track record within that field.
If not, then ask for a business plan and take it to someone who is experienced within the field to make sure. By doing this, you minimize the possible risk at hand and can better position yourself for potential gains.
In order to avoid being convinced by a friend or family member, consider holding the knowledge that you have that large portion of money. Only reveal your savings if you are confident in their ability to be able to create a lucrative, yet safe strategy.
Here are ten strategies to invest $1000 with minimal risk:
- Invest in Index Funds: ETFs are a great way to diversify your portfolio as well as participate in the gains of the stock market.
- Buy and Sell Highly Desired Items With Low Supply: Shortages in certain sectors of the economy create lucrative opportunities. Buy items at MSRP and sell for more!
- Designate Your Money to a Licensed Financial Fiduciary: Leave your money with someone who has experience and knowledge!
- Use the Money to Push Another Business Agenda: Saved money can be allocated towards pushing forward your side hustles and marketing!
- Open a Roth IRA (Tax-Deferred Account): Avoid the large fees associated with investing through opening a tax-deferred account.
- Begin Investing in Real Estate Through REITs: For those who do not have a large sum to dedicate towards tangible properties, this is a great start!
- Acquire Items Which are Undervalued and Sell Them for More: Undervalued items which can be sold for more are a great way to grow your saved income.
- Attain Education That Will Generate Income: Become more useful to others and enjoy the rewards for doing so!
- Pay off Debts in Order to Gain More in the Future: Paying off your debt creates more useable income in your future, inevitably increasing your wealth.
- Become an Investor in an EXPERIENCED Colleague’s Endeavor: Trust your money with a knowledgeable colleague to participate in business investments.
If you have any questions or would like to talk about any of the topics above, don’t hesitate to reach out! Also, if you learned anything today, a share to friends and family is much appreciated!
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Andrew Martinez, owner and writer of Minerva Money
YouTube: Andrew Martinez