Though we're in 2022, the Covid-19 pandemic shows no signs of ebbing, even after laying waste the better part of 2020 and full 2021.
Most Americans might find their savings wiped out due to loss of jobs or other extra expenses during the lockdowns and other pandemic-related issues.
However, if you're among those fortunate Americans that have $1,000 in your bank account or at home, I suggest you invest that money right now.
Why? It's simple. Investing your money helps you get better returns than it would be lying in a savings account or in your kitty at home.
Maybe you're unaware, but there's something that's silently working against your money and you. No, I'm not talking about bank robbers and burglars.
Instead, I'm talking about something known as Time Value of Money (TVM), which most Americans are unaware of.
If you invest $1,000 right now, you could make money grow and beat the TVM in its tracks. Does this interest you? Sure, it should, because it concerns your money and your life. Therefore, continue reading.
I will start with a brief explanation about the Time Value of Money or TVM. That would give you a better idea of why I suggest you invest $1,000 right now.
Understanding Time Value of Money
I strongly recommend you understand what's Time Value of Money or TVM urgently because that will encourage you to invest $1,000 today.
Let's consider a scenario where you have $1,000 in a bank account and another $1,000 at home. After a year, the $1,000 saved at a bank will grow to $1,045 because it attracts an interest of an average of 4.5 percent.
However, the same money kept at home doesn't grow. It's worth only $1,000 as you might like to believe.
It's not true that the $1,000 you kept at home is still worth that amount at the end of 12 months. You can easily find this out by trying to spend the $1,000.
You'll see that anything that you could buy a year ago for $1,000 now costs a little more- let's say $1,045. This means your money has lost 4.5 percent value over 12 months. Only the money you keep at the bank can cover your spending.
This simple calculation shows that your money will lose value by an average of 4.5 percent every year. That means, after 10 years, your $1,000 will be just half of its value.
What does This mean for You?
Therefore, investing the money in the best ways is the only way to ensure that the value of your savings doesn't go down, due to TVM.
The above calculation shows that time is working against your money and you. The only way to beat this equation is to invest the money today. And, invest in a manner that your money grows by more than 4.5 percent per year.
This brings us to the question, are there any best ways to invest $1,000. Indeed, there are. Stay with me as I briefly discuss these 10 best ways to invest $,1,000 today.
10 Best Ways to Invest $1000 Today
Our objective is to beat the TVM and get returns of more than 4.5 percent from $1,000. Here're some excellent ideas for investing this money right now. You could use any of these ideas. If you have more than $1,000, you could consider other ideas too.
1. Best Stocks to Invest $1000
The US stock market is one the surest way to get excellent returns on your $1,000. According to news reports, by December 2021, investors in US stocks got a return of 14.5 percent.
These are indeed high returns because no other legit investments in the US can fetch you such a figure over a 12-month period.
American laws don't permit citizens to buy stocks directly from the stock markets. You have to make these purchases through an authorized stockbroker only.
Therefore, you can approach any good and legit broking house and open an account with them. You can select the stocks where you would like to invest $1,000 today.
Suppose you have a fair knowledge of stocks and how the stock market works. In that case, it's possible to invest $1,000 today by simply downloading an investment app such as TD Ameritrade, Robinhood, or Acorns, among others.
Place orders for your best stocks to invest $1,000 rignt now.
2. Invest in Commodity
Another surest way to get superb returns is by investing $1,000 in the commodity market today. Simply click here to see how much return you can get by investing the money in commodities.
While common favorites such as gold, silver, and lead have fetched poor returns, food grains and crude oil are giving almost 30 percent to even 100 percent returns, as the chart clearly shows.
While you would definitely love to jump on the opportunity to invest $1,000 in the commodity market, here's a word of caution. Unlike stock markets which remain open for a limited period daily.
the commodity market works round the clock. This means you have to observe the trend of various commodities almost frequently.
Secondly, it's possible to make money from the commodity market only if you have sound knowledge of how the prices of various commodities swing up or down.
Since you might not have the necessary knowledge, the best thing is to approach your stockbroker or even your financial consultant. They can help you with investments in the commodity market.
3. Invest on Art
You might never have heard about investing in art. According to Woodberry House, an art auction company, returns on art investment have crossed the 180 percent mark between the years 2000 and 2018.
This proves that art investments are indeed becoming popular and can fetch you some very good returns too.
The best part of art investment is that there're not many people in this field right now. That means the prices of art pieces continue to below. Therefore, you can buy some really good art for $1,000 and expect superb returns in the future.
Normally, art investors buy paintings, drawings, and sculptures of upcoming artists. They see and identify upcoming artists and buy their art before prices rise.
When the artist becomes famous, their art also becomes pricy. That's when these art investors sell or auction the art they possess and make a lot of money.
4. Invest in Cryptocurrencies
Honestly speaking, I can't tell you how much returns you could get if you invest $1,000 today on cryptocurrencies. That's because there's still a lot of myth and uncertainty that shrouds even the best-known cryptos such as Bitcoin and Ethereum, among others.
However, market news shows that cryptos can fetch anything between five percent and 80 percent returns on your $1,000 investment. Obviously, this depends on the crypto where you put your money and other factors.
At the same time, I will add that cryptocurrencies aren't a bad investment at all if you're looking for options to invest $1,000 today. In fact, the prices of cryptos are going up. This might just be the right time for you to jump the bandwagon and invest $1,000.
I will also add that crypto markets are very uncertain. Unlike stocks and commodities, there can be no predictions whether crypto rates will shoot upwards or spiral downwards on any given day.
There's one more flipside with cryptos. All crypto trade is anonymous. Therefore, if you buy cryptocurrencies, you have to store them online or in digital mode only.
If for some reason, you lose access by forgetting the user name or password to your crypto wallet, you could lose your investment.
5. Mutual Funds Investment
There're hundreds of superb Mutual Funds available to invest $1,000 today. It's possible to invest directly in Mutual Funds through any broker of the company.
All you need to do is visit the financial institution's websites that operate Mutual Funds and seek assistance. They will gladly help you invest $1,000 in the best possible plans.
Before you invest in Mutual Funds, I recommend understanding what they are and how they operate. Generally, Mutual Funds in the USA are known to fetch between eight percent and 30 percent returns per year.
Of course, this depends on the type of Mutual Funds where you put the money and various other factors such as risks, stocks, and money market swings.
Overall, Mutual Funds are a basket of stocks, commodities, derivatives, financial and debt instruments. These baskets are created by financial institutions. When you buy a unit of Mutual Funds, you're actually buying a small piece of this basket.
6. Invest in Exchange Traded Funds (ETFs)
An Exchange Traded Fund or ETF is also a basket of stocks and other financial instruments, similar to Mutual Funds. However, there's one main difference. ETFs are traded daily on stock markets, and their prices swing up or down, unlike Mutual Funds, which have stable growth.
Once you have a stockbroking account or app, you can easily buy and sell ETFs. There's a wide range of ETFs available. You can easily select the industry or sector you wish to invest in and buy ETFs from your stockbroker. They provide a return of six percent to 20 percent if you stay invested for a year.
7. Invest in Government Bonds
The Federal Government often issues sovereign bonds of various kinds. These bonds are the safest way of investing your money. That's because no other than the US government guarantees your investment and repayment.
You can invest $1,000 on these bonds today. However, these bonds have a lower return than the other ways I described earlier.
8. Real Estate Investment
You might laugh at me because surely, there's no real estate available for $1,000. Indeed, you can't buy a house, office, or lot for that amount.
But you can invest it in stocks, ETFs, and Mutual Funds or Real Estate Investment Trusts (REITs) that invest in real estate. That way, you don't really own real estate, but you become a shareholder in a company that invests in it.
9. Invest in Vice
With lots of American states making it legal to consume marijuana for recreational purposes, you can also look for investing in vices. This means you'll invest on stocks, ETFs, and Mutual Funds that invest in marijuana producing and processing companies in America.
You can also invest some money on stocks of companies that operate casinos and other such facilities to become a vice investor.
10. Peer-to-Peer Lending
There're several websites where you can invest $1,000. These companies lend your money along with that of other investors to startups, businesspeople, and companies that require loans for any purpose.
You can expect about six percent to 10 percent returns on your P2P investment. However, this way to invest $1,000 can prove a bit risky.
As you can see, I have given some superb ways to invest $1,000 today. The way you actually wish to invest the money depends on the levels of risks you wish to take. You can choose from any of these 10 best ways to invest your money.