17 Best Ways to Start Investing With $1,000

Wall St. Nerd


Updated on

January 13, 2023


When it comes to investing, there are many options available for you. If you only have $1,000 to work with, it can be tough to figure out where to start. In this article, I will outline 17 best ways to start investing with just $1,000. We will discuss why it is essential to start investing and then dive into each method in detail. By the end of this article, you should have a good understanding of how to get started!


Hi there! Alexander here.

If you're reading this, chances are you're interested in learning more about investing and how it can help you reach your financial goals. Whether you're looking to retire early, save for a down payment on a house, or want to make your money work harder for you, investing is a great way to do it.

But where do you start? And what should you know before getting started? That's what we're here to talk about today.

Investing can seem daunting, but it doesn't have to be. With a bit of time and effort, you can learn everything you need to know to start. And once you do, you may be surprised at how easy and rewarding it can be.

So let's dive in, shall we? Here's what you need to know about investing.

"Never invest in a business you cannot understand." - Warren Buffett

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How to start investing

In a nutshell, investing is putting your money into something with the expectation of getting more money back. You can do it in several ways, but most commonly, it's done by buying company shares or investing in property.

Ready to get started? Here are a few tips:

  • Start with what you know: One of the best pieces of advice for new investors is to start with what you know. If you're familiar with a particular industry or sector, that's a good start. Not only will you be more comfortable making investment decisions, but you'll also better understand the risks involved.
  • Please don't put all your eggs in one basket: It's essential to diversify your investments, not putting all your money into one thing. Doing so will help to reduce the risk of losing money if something goes wrong.
  • Think long-term: Patience is a virtue when it comes to investing. It's important to remember that investments can take time to grow, so don't expect to see instant results. By thinking long term, you're more likely to see the rewards of your investment.

I hope this has given you an excellent introduction to investing and some things to consider if you're considering getting started. Remember, there's no rush - take your time researching and seeking professional advice before making any decisions. And most importantly, don't forget to have some fun along the way!

Why should you start investing?

There are many reasons why you should start investing. Let's take a closer look at each of them to help you make the right choice:

  • Investing can help you reach your financial security for the future. You can't predict what's going to happen in the future. Investing in various financial endeavours can help secure your finances in ways you can never imagine.
  • Investing can be a great way to reach your financial goals. If you have a plan in mind, such as saving for retirement or buying a house, investing can help you achieve that goal faster. When you invest, your money has the potential to grow over time. Doing so can help you reach your goals sooner than if you saved your money in a savings account.
  • Investing can also help you grow your family's wealth. As your investments grow, so does your net worth. This can create financial security for yourself and your family. Investing can also help you build wealth for future generations.
  • Finally, investing can help create cash flow that will provide financial freedom. By having money coming in from your investments, you can have more financial flexibility and choices in your life. This can lead to a better quality of life and increased happiness.

So why should you start investing? There are many reasons. Investing can help you reach your financial goals, grow wealth, and build your security for the future.

Now that you know why you should start investing, the next step is to figure out how. In the next section, we'll discuss some of the best ways to start investing with $1,000.

Remember that there is no one size fits all option. By selecting the best option that fits your interests and circle of competence, you'll be well on your way to success.

For example, if you have an excellent radio voice, investing $1,000 into a podcast might yield a higher ROI (return on investment) than investing the same amount into a tech startup through equity crowdfunding.

17 best ways to start investing with $1,000

If you're looking to start investing but don't have a lot of money to start with, don't worry - plenty of options are available. Here are some of the best ways to start investing with $1,000:

Invest in yourself

The best way to start investing is to invest in yourself. You can increase your future earnings potential by building your skills and knowledge. There are many ways to do this, such as taking courses, attending seminars, or reading books on investing.

Investing yourself is essential for increasing your income potential and gaining the knowledge and skills necessary to make sound investment decisions. By becoming knowledgeable, you can avoid making costly mistakes that could set you back financially. Investing in yourself can also lead to better productivity, which can boost your earnings.

Emotional control is another critical aspect of investing in yourself. Learning to control your emotions can help you make sound investment decisions, even when the markets are volatile. When you can control your emotions, you're less likely to make impulsive decisions that could hurt your portfolio.

Invest in stocks

Another way to invest your money is by buying shares in the stock market. There are a few different ways to invest in stocks. You can purchase shares of a company you believe in and hope the stock price will go up, or you can short-sell a stock if you think the price will drop. You can also trade options on stocks, which gives you the right to buy or sell a certain number of shares at a set price.

When investing in stocks, choosing the right company is essential. Research the company’s financial statements and look for red flags. Also, please pay attention to the company’s management team and business experience. Diversifying your portfolio by investing in different companies and industries is also essential. If you’re new to investing in stocks, you should know a few things before you start:

First, understand the difference between common stock and preferred stock. Common stock is what most people think of when they think of stocks. It gives the shareholder voting rights and the potential to earn dividends. Preferred stock doesn’t have voting rights, but it does have priority over common shareholders when it comes to receiving dividends and assets in the event of a liquidation.

Another vital thing to know is what kind of order you want to place. There are four types of orders: market orders, limit orders, stop orders, and stop-limit orders.

A market order is an order to buy or sell a security at the current market price. A limit order is an order to buy or sell a security at a specified price. A stop order is an order to buy or sell a security when the price reaches a certain point. A stop-limit order is an order to buy or sell a security at a specified price after the price reaches a certain point.

Finally, don’t forget about fees. You'll have to pay your broker commissions when buying and selling stocks. These fees can add up, so factor them into your calculations. If you can find a commission-free broker, that's even better.

Do you want to learn more about Stock Investing? Then you should read the following article:


ETFs are another great way to start investing with $1,000 because they are similar to mutual funds. ETF providers develop an ETF based on a specific methodology and sell investors shares of that fund. The vendor buys and sells the ETF's portfolio's securities. Investors may still be qualified for dividend payments, reinvestments, and other advantages even when they do not own the underlying assets.

Another great advantage of ETFs is that they are traded on stock exchanges, meaning their prices fluctuate throughout the day. This allows investors to buy and sell ETFs at a price they are comfortable with.

Lastly, ETFs tend to have lower fees than mutual funds, which makes them a more cost-effective option for investors. It's an excellent choice, especially for those who are either tight on the budget or want to try things first before diving in entirely.

Stock options

Stock options are a great way to start investing because they provide you with the potential to make a lot of money.

If you're unfamiliar with stock options, they are a perk in the form of a company-granted option for an employee to purchase company stock at a discounted rate or a predetermined set price.

For example, if you have a stock option for 100 shares of company XYZ at $50 per share, and the current market price of XYZ is $75 per share, you have the potential to make a profit of $2,500 if you exercise your option and sell the shares immediately.

There are two main stock options: incentive stock options (ISOs) and non-qualified stock options (NSOs). ISOs are only available to employees, while NSOs are available to anyone.

The benefits of stock options include the potential for high returns, the ability to buy shares at a discount, and the fact that you don't have to pay taxes on your profits until you sell the shares.

Invest in REITs

REITs are another great way to get started in investing. They offer many benefits, including the ability to diversify your portfolio, generate income, and receive tax breaks.

There are many different types of REITs available, so it is essential to do your research before investing. You can invest in REITs through mutual funds, which offer the benefit of diversification, or you can invest directly in a REIT.

Most real estate property types, including apartment complexes, cell towers, data centres, hotels, offices, retail centres, and warehouses, are all REIT investments. Either way, REITs are a great way to get started in investing and can help you reach your financial goals.

Here you will find my article about REITs Investing. In this guide, I will explain how you can start investing in REITs, and which kind of strategy I follow. Happy reading 🙂

Peer-to-peer lending

Meanwhile, if you're looking for a way to invest your $1,000 that could yield high returns, peer-to-peer lending may be a good option. Peer-to-peer lending is a form of financing that involves lending money to individuals or businesses through online platforms.

One of the benefits of peer-to-peer lending is that it can be a relatively low-risk investment. That is because the loans are often secured by collateral, meaning there is less default risk. Additionally, peer-to-peer lending platforms typically perform credit checks on borrowers, reducing the risk for investors.

Another benefit of peer-to-peer lending is its potential for high returns. Because peer-to-peer lending platforms usually charge higher interest rates to borrowers than traditional banks, investors can potentially earn higher returns on their investments.

Real estate crowdfunding

Real estate crowdfunding is a relatively new way to invest in real estate. It allows you to pool your money with other investors to buy a property and then share the profits or losses when sold.

Several platforms offer real estate crowdfunding, each with its rules and regulations. But generally, you can expect to invest a minimum of $1,000 and earn a return of anywhere from 12% to 36%.

Real estate crowdfunding is a great way to start investing, especially if you don't have much money. It's a relatively low-risk investment since your finances are spread over many properties.


If you're looking for a way to start investing with $1,000, Airbnb is a great option. With its many benefits, it's no wonder that so many people are choosing to invest in Airbnb.

Airbnb is an online marketplace that connects people who need a place to stay with those who need to rent out extra space. Airbnb allows you to be your own boss and set your prices, which gives you much control over your income.

Airbnb is a great way to make extra money, especially if you live in a popular tourist destination. Many people consider this fantastic platform to be an excellent investment because it can provide a steady stream of income and has the potential to appreciate value.

Here 2 more articles about Airbnb, that you should read before start investing in Airbnb rentals.

Blogging and affiliate marketing business

Blogging has become a hugely popular way to make money online in recent years. By creating informative and engaging content, bloggers can attract a large audience of readers interested in what they have to say. That's why many people consider it these days an excellent form of investment.

By creating a blog, you can capture your niche's attention and encourage them to purchase stuff or avail of particular services. That's where affiliate marketing comes into the picture.

Affiliate marketing is another way to earn money online by promoting products and services on your blog. If you can build up a large enough audience, you can make a significant income from affiliate marketing. So if you're looking to invest in blogging, it's worth considering!

Both blogging and affiliate marketing are excellent ways to make money online. But it would help if you kept a few things in mind before starting:

  • You must ensure you have a strong niche and audience.
  • You need to be consistent with your content and marketing efforts.
  • You need to be patient! It takes time to build up a successful blog or affiliate marketing business. But if you stick with it, you can make money from home.

Are you a good writer? And are you thinking about to start your own blog? Then you must read my guide "How to Start Blogging".

Own Podcast Show

Creating a podcast is another way to invest your $1000, especially if you want more creative liberty in earning money. With podcasting becoming increasingly popular, it has become a great way to reach a wider audience and build a following. Plus, it's a great way to connect with like-minded people and learn more about the topics you're passionate about.

While it does take some time and effort to get a podcast up and running, it can be a great way to make money down the line. And who knows, maybe you'll even become the next big thing in podcasting. Here are a few tips to get you started:

  • Pick a topic or niche that you're passionate about. It will make the process of creating and recording episodes much easier and more enjoyable.
  • Do your research and plan each episode ahead of time. Doing so will help ensure that your episodes are informative and engaging.
  • Invest in quality audio equipment. Investing in the right equipment will make your podcast sound professional and polished.
  • Promote your podcast through social media and other channels. It will help you reach a wider audience and build a following.

Ready to start your own Podcast Show? Before you start, check my guide below:

E-commerce business

Our society is moving in a fast-paced environment. That's why everyone needs to find ways to adapt to the ever-changing world, especially businesses. Now that people are doing almost everything on the internet, online shopping popularity is now soaring more than ever.

Investing in an E-commerce business project is an excellent way of investing your money in a worthwhile financial endeavour. Many companies are now moving towards online platforms, so it's a good idea to get in on the action early. Not only will you be getting in on a growing trend, but you'll also be able to make a significant profit from your investment.

There are many things to consider when starting an Ecommerce business, but the most important thing is to make sure you choose a niche you're passionate about. Once you've found your niche, the rest of the process will be much easier.

Plenty of resources are available online to help you get started if you're unsure where to start. You can also hire a professional to help you get your business off the ground.

For making your first steps in the ecommerce world, it is important to know, how you can build your own online store. For this, I created the guide below:


Another option for investing your money is to invest in bonds. It can be a great way to earn interest on your investment, but it's important to remember that there is always some risk involved.

The key to success with bonds is to diversify your portfolio. It means you should not put all your eggs in one basket. Instead, you should invest in a variety of different bonds. Doing so will help to minimize your risk and maximize your chances for success.

There are several ways to invest in bonds, each with pros and cons. The key is to find the option that best suits your needs and goals. With some research, you can be well on your way to success.


If you're looking for a higher return on your investment, you may also want to consider investing in a longer-term CD. The trade-off is that you will have less liquidity, meaning you will not be able to access your money as easily. However, if you are comfortable with that risk, a longer-term CD can be a great way to earn a higher return on your investment.

While the interest rates on CDs are not always the highest, they are a relatively safe investment since they are FDIC-insured. When looking for CDs to invest in, be sure to compare the APY (annual percentage yield) and the terms of the CD. The APY is the rate of interest you will earn on your investment over a year, while the term is the length of time you agree to keep your money in the account.

Treasury Securities

For those who are looking for a safe investment with a guaranteed return, you may consider investing in treasury securities. Treasury securities are issued by the federal government and backed by the full faith and credit of the United States government. Thus, making them one of the safest investments available.

Treasury securities come in two main types: treasury bills and treasury bonds. Treasury bills are short-term securities with maturities of one year or less, while treasury bonds have maturities of more than one year. Both types of securities offer a guaranteed return, making them a safe investment for those who are risk-averse.

Money Market Accounts

Money market accounts are similar to savings accounts in that they offer liquidity and safety. However, money market accounts typically have higher interest rates than savings accounts. Thus, making them a good choice for those looking for a higher return on their investment.

Like savings accounts, money market accounts often have fees and minimum balance requirements. However, the fees are typically lower than those of other types of investments, making money market accounts a good choice for those looking to start investing with a small amount of money.

Although the returns are typically quite low, your $1000 can be safely held in a money market account until you have more capital to invest. This will allow you to avoid any fees associated with other investments.

Mutual Funds

Mutual funds are a type of investment that pools money from many investors and invests it in a portfolio of securities. Mutual funds are managed by professional money managers, which makes them a good choice for those who don't have the time or expertise to manage their investments.

Mutual funds come in many different types, including stock mutual funds, bond mutual funds, and index mutual funds. Each type of mutual fund has its own risk and return profile, so choosing the right kind of fund for your investment goals is essential.

Mutual funds can have higher fees than ETFs, but for those that are just getting started in the investing world, mutual funds can be a good way to get started. By having a support system of other investors and a professional money manager, you can minimize your risk while still earning a return on your investment.

Equity Crowdfunding

For those who are looking to invest in startups and small businesses, equity crowdfunding may be a good option. Equity crowdfunding allows investors to pool their money and invest it in a company. In return, the investors receive equity in the company.

Equity crowdfunding is a relatively new way to invest, so there is some risk involved. However, for those who are willing to take on the risk, equity crowdfunding can be a great way to get in on the ground floor of a new company.

When evaluating companies that have the potential to make your investment profitable, look at the management team, business model, and market opportunity. These are just a few factors that can help you determine if a company is worth investing in.

Faq. Of the best ways to start investing

We covered a lot of different ways you can make $1.000, but, enviably, there will be questions. Here are some of the most frequently asked questions and detailed answers, so you can start investing as soon as possible!

Can you make $1,000 in a day?

While making $1,000 in a day is possible, it's important to remember that risk is always involved. It's best to consult with a financial advisor before making any significant investment decisions.

To make $1,000 in a day through investing, you'd need a 100% return which is typically difficult to achieve. Selling a high-ticket item through e-commerce or finding a viral product to drop ship is an easier way to make $1,000 in a day.

Can you lose money by investing?

Yes, it's possible to lose money by investing. However, this is usually only the case if you make poor investment choices or fail to diversify your portfolio.

What are some suitable investments for beginners?

Some suitable investments for beginners include bonds, stocks, and mutual funds. It's important to remember that there is always some risk involved with any investment, so it's best to consult a financial advisor before making any significant investment decisions.

What are some good investments for people with more experience?

Some good investments for people with more experience include equity crowdfunding, stocks, and peer-to-peer lending. These investments usually carry more risk than other forms of investing but as experienced investors, being able to assess risk and reward should come more naturally.

What are some of the risks associated with investments?

All investments come with risk. Some investment vehicles are riskier, but all can potentially lose money. It's crucial to do your research and understand the risks before investing. Many people invest in different asset classes to diversify their portfolios and reduce risk. Some of the most common risks associated with investments include market risk, liquidity risk, and inflation risk.

What if I don't have $1,000 to invest?

If you don't have $1.000 to invest, that's OK! You can start with less. There are plenty of investment opportunities that require less capital. For example, you can start investing in stocks with as little as $500. The key is to start somewhere and gradually build your investment portfolio

I'm not sure where to start. Any advice?

If you're unsure where to start, there are a lot of resources available to help you get started. I recommend talking to a financial advisor or taking an investing class. Many brokerages also offer resources for beginner investors.

The key is to educate yourself and understand the different investment options available. Once you have a better understanding of the market, you'll be able to make more informed investment decisions.

Final Thoughts Of The Best Ways To Start Investing

There you have it! These are some of the best ways to start investing $1,000. No matter your age, experience, or location, there is an investment opportunity for you.

Investing your money is a great way to secure your financial future. There are many different ways to invest your money, and each has its pros and cons. It's important to remember that there is always some risk involved with any investment, so it's best to consult a financial advisor before making any significant investment decisions.

No matter what method you choose, investing your money is a smart move that can help you reach your financial goals. So what are you waiting for? Start investing today!

If you have any questions, please feel free to reach out to me. I would be happy to help. Happy investing!

The above article is for informational purposes only and should not be taken as financial advice. Please consult a financial advisor before making any significant investment decisions. Thank you!

Have a great day! 🙂

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Hi, I'm Alexander Kelm.

Serial entrepreneur, value investor and angel investor. Founder of Wall St. Nerd. Join me here on wallstnerd.com to learn how to read financial statements, find healthy companies, and invest your money wisely.

Let's chat on Twitter about investing.

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