Best Way to Invest $1000?
If you have $1,000 to invest, your first step should be related to money management, and this means making sure that you could handle taking a loss on this amount without affecting your personal finances. Investment capital should never come from savings; if you do not have reserves at the moment, you should put $1,000 towards building a cushion that will pay for your household expenses for the next three months.
With the above in mind, you should not feel constrained by the amount you have on hand. If you are new to investing, you should feel confident that this is enough to get started. You may initially feel attracted to investing in equity securities; this is known as the siren call of Wall Street, but you should first consider commission costs that average $7 per trade. Assuming that you take 10 diversified positions, you would start your investment journey down $50. Instead of jumping headlong into stocks, here are few options for you to consider:Read more