the game of money isn't easy and if you don't understand the rules you will fail. the truth is that most people work hard their entire lives but they still end up poor when they get old because they don't know how to let their money work for them.

how to let their money make them more money. in other words, they don't know how to invest today I'll be talking about how to invest your first one thousand dollars step by step 2022.


HOW TO INVEST YOUR FIRST $1000 WISELY

so i'm gonna assume that you have been saving and you have a thousand dollars to invest in your bank account already.

let me just say that you are already ahead of most people because most people have no savings at all. there was a study done recently which found that 61 percent of people would not even be able to afford a 1 000 emergency trust me you don't want to be part of that group.


# REAL ESTATE INVESTMENT

so before we get into the How To Invest Your First $1000 wisely or carefully, options starting an emergency fund of three to six months of expenses if you don't already have one could be a great idea.

so anyways instead of just wasting that extra one thousand dollars that you have on your wants such as a new pair of shoes or some designer bag that you don't even need that you'll only use a few times.

you want to invest that money and since you clicked on this article i'm assuming you want to do exactly that. but the question is how do you invest your first 1000 do you invest in stocks real estate crypto nfts if stocks what kind of stocks you buy if crypto what crypto is 1 000 even enough.

first i'm going to give you an example to help you understand what investing even means. so let's say you worked really hard for years and you saved two hundred thousand dollars. now you go out and you buy some real estate a rental property to be more specific.

so you rent that property out every month and you get at least two thousand dollars from it.

note that you can sell that property whenever you want and get back that two hundred thousand dollars and since real estate usually appreciates you'll probably be able to sell the property at a higher price and get more than that 200 000.

that is exactly how you make money from an investment and how your money can make you more money. but of course, we only have a thousand dollars and that's not really going to buy us a rental property.

but that doesn't mean that you can't invest that thousand dollars somewhere else such as stocks or crypto to let your money grow. 

before I get into stocks and crypto I want to start off by saying that one of the best ways to use the one thousand dollars is investing in yourself.

so why is investing in yourself so important think about it unlike other investments out there investing in yourself has absolutely no risk because it always pays off. even when you make bad investments it's not really a bad thing because you've learned something from it.

so how do you invest in yourself maybe this is getting a real estate license or learning a new valuable skill or starting a business that you've always thought about.

yes a business is very risky and you could lose all of your money but it could be the best investing lesson you learn which could make you tons of money in the future and be worth it. 


# BUYING AND READING BOOKS

another example of investing in yourself is buying and reading books remember if something doesn't work out well then at least you learn from it.

which is very valuable in itself over the long term investing in yourself will compound and yield exponential returns and you will end up with a bunch of cash.

the next investment option is to leave your money in a savings account and earn money from the interest through that if you get a high yield savings account of say 0.6 which you'll be lucky to find nowadays.

by the way and you invest your one thousand dollars into it. twelve months from now you'll get six dollars from the bank inflation is usually a two to three percent not this year of course.

which means that if you're not getting at least two to three percent interest the real value or the purchasing power of your one thousand dollars will depreciate meaning you won't be able to buy the same amount of stuff with it every year.

 that's why this is a horrible option don't get me wrong savings accounts are great for emergency funds of three to six months of expenses or for other large purchases which you are saving up for which you will need the money for soon and you can't risk losing it.

but when it comes to making your money work for you savings accounts are not the way to go.


# STOCK MARKET

Another great way to Invest Your First $1000 to make higher returns like 10 20 or 100 you'll have to take on more risk and consider investing in the stock market.

for example, amazon's stock price increased by over 12 in the past year. google's stock price rose by almost 70 percent. tesla stock increased by 150.

so why would you not invest in stocks because when you put money in a savings account it is secured and there is a really low risk that you will lose it.

but when it comes to investing in individual companies there is a risk that the company might fail in which case you could lose all of your money. 

there are tons of factors that can drive the stock price down such as quarterly earnings bad news bad product reviews and more. so with higher risk comes higher returns.

of course you can invest in blue chip stocks such as apple amazon which are well-established companies and have less chances to fail.

but since it's less risky there's also less room to grow for example amazon only grew 12 this year while tesla by 150.

you have to figure out for yourself how much risk you personally want to take if all you have is that one thousand dollars then you may not want to put it all in one single company.

because if things go bad you would end up losing a lot of it one way you can minimize your risk is by investing in index ones.

one of the best ones that some of the greatest investors recommend is the s p 500 which tracks the top 500 us companies. this means that if you buy a share of this index fund you're buying a tiny share in the top 500 companies in the usa.

you're buying a basket full of stocks and diversifying instead of just putting all your eggs in one basket. ever since its creation it has had an average return of 10 or 8 percent adjusted for inflation.

my favorite index funds are the vanguard 500 index one or voo and the vanguard total stock market index fund or vti.

both of these are amazing and have had very similar returns so now how do you actually buy these index funds or stocks.

where do you start first you'll need to find a broker no this does not have to be some dude on wall street fortunately brokerage firms have created apps so that you can buy shares from the comfort of your phone such as fidelity public robinhood weibo and so on.

all you have to do is download one of these apps and sign up and you can start investing your one thousand dollars right away.



# CRYPTO

Next up To Invest Your First $1000 is the riskiest option is investing in crypto. crypto is extremely volatile and you can make and lose money from it fast for example bitcoin has had a 310 return in the past year ethereum has had a 942 increase in the past year yes 942 percent.

those are some insane returns but there's also an insane amount of risk if you're able to handle this risk and all the fluctuations without going crazy then you may want to consider crypto.

my top two cryptos are bitcoin and ethereum and if you don't know what bitcoin and ethereum is and how they work then you may want to do some research on them before putting money into them.

but bitcoin is basically digital currency and it has been described as digital gold and ethereum is an open software platform which allows users to build decentralized apps.

they're both solving massive problems and are here to stay so now how do you actually buy crypto where do you start first you'll need to find a crypto exchange.

just like with stocks these crypto exchanges have made apps so that you can buy crypto straight from your phone at home such as coinbase block fi and so on.

all you have to do is download one of their apps and sign up and you can start investing in crypto right away.

all you have is one thousand dollars and you aren't willing to risk losing most of it then i wouldn't invest in crypto because you never know when the market is going to crash.

you need to figure out for yourself how much risk you're willing to take i tried my best to make define as simple as possible so that whoever wants to start investing can start right away.

So that's it for today now i think you know how to invest your first $1000 for the best highest possible return.

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