How to invest $1,000: Five Tips - Investing for Beginners

What is the best way to invest $1,000? Watch this video to find out my beginner investor tips on how to invest $1,000.

*Best way to invest $100: youtube.com/watch?v=Zc7EEkqQxLI

*What to do when you turn 18: youtube.com/watch?v=n3mv-tFudjU

The goal of investing is simple: have more money. There are two ways to make more money every month.

Firstly, you can generate more income. This can come from either active income like your job, or passive income through investments.

Secondly, you can lower your expenses. You can save more money if you spend less.

I made a video on how to invest $100, where I talk about paying off debt, developing money-making skills, and creating an emergency fund. All of those still apply when thinking of how to invest $1,000.

But in this video, I break down five new tips on how to invest $1,000.

(1) If your employer has a 401k, invest in it.
Typically, employers will offer 401k’s. A 401k is a type of retirement account. A 401k is not an investment itself; rather, it is a bucket that you choose your investments from.

Employers will often give their employees a match on every dollar they contribute to their 401k’s.

If your employer matches, this is free money. Put the money in the account and then you will get an automatic return from your employer!

(2) Open a Roth IRA and Buy VTI

Now is a great time to open a Roth IRA and buy an index fund.

What is a Roth IRA? A Roth IRA is a type of retirement account used to avoid paying taxes. You deposit money into the Roth IRA and it will be free from taxes when you withdraw it. For a more in-depth look at Roth IRA rules and how to be a Roth IRA millionaire, check out my video on Roth IRAs: youtube.com/watch?v=Jy4Ci6JwtN0

The Roth IRA is just a bucket, not an investment itself. I personally opened a Roth IRA at Vanguard and bought VTI, an index fund that tracks the broad stock market. This is not investment advice, just my opinion!

If you want to know how to be a millionaire, this is probably the easiest opportunity you will have to do so!

(3) Open an after-tax account at a firm like Vanguard or Charles Schwab

Charles Schwab now offers fractional share investing. This is awesome. This means that you can buy little pieces of companies. Instead of having to pay $1,800 for a single share of Amazon, you can buy 1/10th of a share, of $180.

I witnessed firsthand the power of investing early and often. I invested a little over $2,000 in Apple. In eight years, my investment went up 10x. Wow! Now, that is not typical, but it can and does happen.

(4) Preventative Maintenance

A dollar saved is a dollar earned and an ounce of prevention is worth more than a pound of cure. Go to the dentist, fix your car, and service your AC. You will avoid big bills and credit card debt in the future if you can spend a little money preventing a problem.

(5) Time/Energy Saving
The most precious commodity we all have is time. If you can save yourself time, you can save yourself energy that you can use to put more energy into your job, pick up a side hustle, or develop new skills.

I use grocery delivery, which saves me time and money. I am much less likely to eat out if I have groceries that I can simply cook and prepare. I am much healthier too!

So what do you think about these tips on the best ways to invest $1,000? Let me know in the comments below!

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