If you want to begin investing, getting started can be intimidating. You may never take the leap out of fear of losing money or confusion about the investing process. There are so many options to consider when you’re trying to figure out what to do with $1000 dollars, and it can be very confusing, but not investing will also not help your future. Fortunately, the investment landscape has changed, and there are new ways to grow your money that offer you more control and less risk.
If limited funds concerns you, don’t worry; you don’t have to have a huge amount of money to get started with investing. In fact, you can easily learn how to turn $1000 into more money and see significant financial benefits, either through investment or spending. It’s a new world for consumers, and you can benefit from knowing things to buy for $1000 dollars that will be worth it for you in the long run.
What Can You Do With $1000 Dollars?
Your financial strategy doesn’t need to be the same as your parents’ plan. Instead, put your money to work by searching out creative avenues of what to do with $1000 dollars. Some of the most promising options of how to turn $1000 into more money include the following:
This investment platform partners with the small investor so that you can have access to the opportunities usually reserved for the fabled 1%. It’s a private REIT, a real estate investment trust, which is a company that owns, finances, and/or manages real estate for a profit. For new investors, private REITs are generally out of reach, since they are available only to Accredited Investors with a net worth of at least $1 million. However, now anyone can participate in a private REIT through DiversyFund.
For only $500, anyone can invest with DiversyFund. The company can offer this low buy-in because they operate as a partner and eliminate the middlemen, who often charge hefty fees for their services. In contrast, DiversyFund currently charges no annual management fee and is open to all investors.
The fund bills itself as a wealth-building opportunity that invests in “cash-flowing apartment buildings.” They take the rent/lease profits from these apartments and reinvest them in order to increase your returns. The advertised returns are 10-18%, which is considered a solid return on real estate investments, making it a great place to invest your $1000.
With DiversyFund, you get to enjoy professional management of a diversified portfolio. You are not, however, allowed an early-redemption option. Consider the process to be real estate crowdfunding that offers you unexpected opportunities. As with all investments, you will need to exercise a degree of patience if you decide to invest in DiversyFund.
Stash allows you to choose from several low-cost investment plans that let you purchase fractional shares. When investing with or in most companies, you have to buy whole shares, which deters many from making a financial commitment since the price can be steep (i.e. Amazon, Tesla, and Shopify all trade above $1,000 per share as of this writing).
Stash’s personal investment option allows you to invest in specific companies that you find attractive. Or, you can choose an ETF, which is a related bundle of stocks, bonds, or funds, kind of like a mutual fund. Finally, you can opt for investing in bonds only. Each option comes with its own advantages. You can begin investing with only $1 since fractional shares go for as little as $.01. You can even get a piece of a stock priced at $1000 or above for just $.05. Affordability is not a problem with Stash App.
In addition to personal investment accounts, Stash offers you retirement, custodial, and banking options. You can also take advantage of automatic investing programs that implement a set schedule, round up the amount of your transactions, or use analytics to maximize your return.
You can definitely afford to invest with Stash, but can you make real money doing so? The Stash app allows you to choose your risk level and the amount of your investment. While you may not strike it rich with Stash, steady, long-term investment in their program will give you solid returns, more than a savings account would. It’s easy and inexpensive to use, and you retain a high level of control. It’s another excellent way to begin investing and a great answer to the question “What can I do with $1000 dollars?”.
Aspiration is a different kind of bank that also works to improve the world while giving you safe, convenient banking. Their slogan is “Do Well, Do Good,” and their homepage promises that you’ll earn interest, get cash back, and potentially plant a tree with every debit card swipe. Their message certainly differs from that of your average bank.
Aspiration’s fee structure is one of their most unusual aspects of the bank. In most instances, you choose what you pay them. Their management wants you to decide what is fair. They will then take 10% of what you pay them and make a donation to a charitable cause. Aspiration even lets you choose which of seven charities receives your donations. For some banking services, such as a wire transfer, Aspiration only charges what the transaction costs them. The bank is dependent on the fees that you determine, and you can pay them nothing if you want. Zero. They expect that your innate sense of fairness will prevent that choice, of course.
Aspiration offers several account types and benefits. Their basic account is the “Pay What is Fair” choice. The company promises that your deposits will never fund fossil fuel production or exploration. You’ll also receive 3-5% cash back on Conscience Coalition purchases. This coalition is made up of socially conscious companies, such as TOMS and Blue Apron. You’ll also have access to 55,000 free in-network ATMs, where you’re able to plant trees with every swipe, if you wish.
For $3.99 per month, you can have an Aspiration Plus account which gives you cash back, a chance to earn up to 1.00% APY on your savings, and other benefits.
Aspiration also offers you an option to invest in their Redwood Fund, which deals with fossil fuel-free funds and only requires a $10.00 deposit. You can also choose a retirement fund, if it’s time to start preparing for life after your career. Investing in your retirement is always one of the best things to buy for $1000 dollars.
Although you cannot deposit physical cash in your account, Aspiration generally gets good reviews and it’s a great way to be socially conscious, while keeping banking fees down and earning some cash back.
Lemonade Insurance Company
You probably don’t think buying insurance is exciting, but Lemonade has turned the industry upside down and made it easy for you to save a lot of money on these necessary, but often painful, purchases. Most importantly, Lemonade uses their profits to give to causes near and dear to your heart. Their philosophy is entirely different than that of a traditional insurance company. Most insurers collect your premiums and try to minimize claim payouts, so that they make more money, which means you often end up fighting with your company over the items it agrees to cover or the amount it will payout.
Lemonade’s pitch is that it treats your money as if it remains yours. If you have claims, they pay out quickly. Any money that is not paid out in claims each year to your peer group is then used in Giveback. Giveback is the process where the “leftover” money is given to a common cause. Their plan is to give you good insurance, while also improving society. If the claim payout exceeds the peer group’s premiums, then the company uses reinsurance money to cover the difference. Of course, Lemonade keeps some of the premiums to run the business. It is not a charity, despite its unusual focus on giving.
Currently, Lemonade offers homeowners insurance, renters insurance, and pet health insurance, and getting an insurance quote from them is simple and fast.
You may be suspicious that Lemonade sounds too good to be true, but customer reviews are quite positive. Instead of waiting months for settlements, Lemonade sometimes pays out in minutes. Plus, the coverage is considered excellent and very inexpensive. You can use their website or their app to sign up, so it’s convenient for you as well.
Bet you never guessed answering the question “What can you do with $1000 dollars?” would involve investing in insurance!
Time to Decide What to Do With $1000 Dollars of Your Own Money
If you want to turn $1000 into more money, you should consider taking advantage of one of the options above, whether you decide to spend it or invest it. In fact, you could choose several of the options above, since the minimum investment or buy-in needed for most of them is actually much lower than $1000.
All of these companies take a non-traditional approach to investment or financial services, which will allow you to take part without having much money. Stash and DiversyFund let you enter the investment game safely and with minimal risk, which is especially attractive to new investors, and you can make a solid return on these investments. Lemonade has turned the insurance industry on its head by making claims a non-confrontational process. If you are covered, they pay out quickly and try to do some good with the money left over. Aspiration is trying its best to make the planet better, while offering you an excellent banking experience.
All of these offerings are worth a try, and they reflect a change in how people see investing and spending. Just don’t expect to get rich overnight! Building your wealth should and will take some time.