Everyone knows the famous saying “The first million dollars is the hardest”, but how can I make that first million if my salary barely covers my basic needs?
Even on the roughest of days, we might find some forgotten 50$ bill in the back pocket of a pair of jeans, or receive a generous gift from a relative. 99% of the people would say “Hey extra cash! The next round is on me!” while the other 1% would think “Hey extra cash! Where can I invest it so I would make even more extra cash?”
Investments can begin at a very small scale, and once you learn how to successfully do that, a world of endless possibilities will open up before you. So if you have an extra 1000$ today, how can you invest it?
When we say “nowadays there’s an app for everything”, know that we totally mean it. Countless apps are available on the app stores to help you not only invest money, but save up enough money to be able to do it. There are several apps that can allow you to invest simply and seamlessly, like the Wealthface app. You can invest in small amounts to eventually reach greater earnings and results.
These apps function using Robo-Advisors that will design a portfolio of stocks and bonds specially tailored for you, then manage it by reinvesting dividends and rebalancing it in the best way possible.
An amazing way to start making considerable revenue is by investing the unnoticed small amounts we make every day.
Peer-to-Peer lending (P2P)
P2P lending platforms are designed to borrow money under the “personal loans” label. These unsecured loans have many different purposes and can be as high as 40,000$, while the interest depends on the borrowers’ credit profiles.
In order to reduce the risk of unsuccessful loan payments, these platforms allow you to invest in many different loans with very small amounts. For example, if we wish to invest 1000$ through a P2P lending platform, we can divide it into 4 loans, 250$ each.
While the revenue might be small at first, it is still a very secure and promising way to invest an amount as low as 1000$ and benefit from the interest rate set.
Buying and selling
From the dawn of time, humans have made immense fortunes by buying and reselling almost everything. Think about your local supermarket, the used cars dealer you bought your car from or even the guy selling hotdogs on the corner of the street. Each one of them bought something and is now reselling it for a higher amount.
With 1000$ in hand, you can buy a lot of stuff from garage sales, local markets, or even a store that is having a wild 70% discount, and try to resell the goods somewhere else. Your only challenge would be finding a new buyer. Luckily we’re living in the 21st century and the world is at our fingertips. You can always create your own Facebook or Instagram page to sell almost anything, and on a bigger scale you can always use Amazon, EBay, or any local ecommerce website that allows C2C transactions.
If you watched “The Wolf of Wall Street” back in 2013, you might have been distracted by the lavish lifestyle of Jordan Belfort after making a fortune from investing in stocks. But the movie sheds the light on a huge opportunity that almost everyone missed, the smaller shares.
The economy is not only made of the Fortune 500 companies, and many cheaper stocks can help you make a real fortune if you know how, when and where to invest. Many shares are widely available for everyone to buy, and this kind of investment does not need a loaded bank account, a simple 1000$ would do.
Payoff your debts
This might seem like a boring idea, but it is surely a winning investment. The amount you owe for an organization or an individual is a heavy burden that only gets lighter by paying it off as soon as possible. Free yourself from all the debts that are exhausting you, even if you’re only paying an extra 1000$ on your monthly bill. These small extra amounts will accumulate at the end, freeing you from your financial commitments, which will allow you to spend the revenue you generate the way you want.
The main reason for people not investing today is not the lack of resources, but the lack of knowledge and information. Do not let your day-to-day problems hinder your growth, and know that every penny you make today will help you build a stronger foundation for even tougher days.