If you’re sitting on at least $1,000 and it’s scratching an itch in your pocket, consider investing it rather than spending it on something frivolous. But the question that then beckons us is: Can you make money quickly by investing just $1,000?
While there are plenty of ways to make money fast by doing odd jobs or generating it through affiliate marketing or email marketing, making money by investing just $1,000 might present more challenges and, frankly, more risks. That is, of course, unless you know what you’re doing.
However, all risks aside, even if you’re living paycheck-to-paycheck, you still may be able to conjure up $1,000 to put towards an investment if you’re creative. Before you dive in, there are some mindset principles that you need to adhere to. Moving beyond the scarcity mentality is crucial.
Too many of us live our lives with the notion that there are never enough things to go around—that we need more time, money, connections, or opportunities to grow and live at a higher level. That’s just a belief system. Think, and you shall become.
If you think you can’t get rich or make a sizable amount of money by investing it in lucrative short-term investment vehicles, then it’s much more of a mindset issue than anything else. You don’t need to invest much money in the following strategies.
1. Play the stock market.
Day trading is not for the faint of heart. It takes grit and determination. It takes understanding the different market forces at play. This is something other than something intended for amateurs. But, if learned and learned well, it is a way to quickly — within hours — make a significant amount of money with a relatively small investment.
There are also ways to hedge your bets when playing the stock market. Whether you play the general market or trade penny stocks, ensure that you set stop-loss limits to cut any potential for significant depreciation. Now, if you’re an advanced trader, you will likely understand that market makers often move stocks to play into our fear of failure or greed. And they’ll constantly push a store down to a specific price to enhance that fear and play right into their pockets.
When it comes to penny stocks, this is further exaggerated. So you have to understand what you’re doing, analyze the market forces, and make significant gains. Pay attention to moving averages. Often, when stocks break through 200-day moving averages, there’s potential for either considerable upside or a big downside.
2. Invest in a money-making course: —
Investing in yourself is one of the best possible investments you can make. While you might be unable to pinpoint an actualized return on investment, no money’s better spent. Invest in yourself. Invest in your education. Learn. Adapt. Grow. Discover what you’re passionate about.
There are loads of money-making courses on the internet. The hard part is choosing the right one. The possibilities are endless, from ebooks to social media marketing, search engine optimization, and beyond. While many money-making gurus might pop up on social media, not all courses are created alike. Please do your due diligence and research to choose the one that’s right for you.
3. Trade commodities:
Trading commodities like gold and silver presents a rare opportunity, especially when trading at the lower end of their five-year range. Metrics like that give a strong indication of where commodities might be heading. Carolyn Boroden of Fibonacci Queen says, “I have long-term support and timing in the silver markets because silver is a solid hedge on inflation. Plus, commodities like silver are tangible assets that people can hold onto.”
The fundamentals of economics drive the price of commodities. As supply dips, demand increases, and prices rise. Any disruption to a supply chain has a severe impact on prices. For example, a health scare among livestock can significantly alter prices as scarcity reigns. However, livestock and meat are just one type of commodity.
Metals, energy, and agriculture are other types of commodities. To invest, you can use an exchange like the London Metal Exchange or the Chicago Mercantile Exchange, as well as many others. Often, investing in commodities means investing in futures contracts.
This is basically an agreement to buy a certain amount at a certain price at some point in the future.These leveraged contracts have the potential for both big gains and big losses, so you should be careful.
4. Trade cryptocurrencies:
Cryptocurrencies are on the rise. While trading them might seem risky, hedging your bets here could also limit the fallout from a poorly timed trade. There are plenty of platforms for trading cryptocurrencies as well. But before you dive in, educate yourself. Find courses on platforms like Udemy, Kajabi, or Teachable. And learn the intricacies of trading things like Bitcoin, Ether, Litecoin, and others.
While there are over 3,000 cryptocurrencies in existence, only a handful matter today. Find an exchange, research the trading patterns, look for breakouts of long-term moving averages, and get busy trading. You can use exchanges like Coinbase, Kraken, Cex.io, and many others to make the actual trades.
5. Use peer-to-peer lending:
Peer-to-peer lending is a hot investment vehicle these days. While you might not get rich investing in a peer-to-peer lending network, you could make a bit of coin. Which lending platform do you use? There are many to choose from today, but the most popular ones include Lending Club, PeerForm, and Prosper.
How does this work? Peer-to-peer lending platforms allow you to give small bursts of capital to businesses or individuals while collecting an interest rate on the return. You get more money than you would if you placed it in a savings account, plus your risk is limited because the algorithms are doing much of the work for you.
Once you identify the offer, you can dig in and do some research; then, you can either take the deal or not. Your employment and credit history will be used to calculate your risk, and you can decide whether or not to invest based on a number of well-thought-out data points.
6. Trade options:
When it comes to options, Tom Sosnoff at Tastyworks says, “Trade small and trade often.” What type should you trade? There are loads of vehicles, such as FOREX and stocks. The best way to make money by investing in options is to jump in around 15 days before corporate earnings are released. What type should you buy? Money calls.
The day before the company reports its earnings is the best time to sell those covered calls.There’s so much excitement and anticipation around earnings that it typically drives up the price, giving you a consistent winner. But please don’t worry about holding onto the profits. That’s a gamble you want to take only if you’re a seasoned investor, says John Carter from Simpler Trading.
7. Flip real estate contracts:
Making money with real estate might seem like a long-term prospect, but it’s not. There are ways you can take as little as $500 to $1,000 and invest it in flipping real estate contracts to make money fast. How? Use a system like Kent Clothier’s REWW first to understand how the market works. It’ll then provide the data and tools to identify vacant homes, distressed sellers, and cash buyers.
While most people think that real estate is won by flipping traditional homes and renovating them yourself, the fastest money you can make in real estate involves converting the contract. It’s arbitrage. Identify motivated sellers and cash buyers, bring them together, and effectively broker the deal.
It might seem odd on the first try, but once you get the hang of it, you can become a mini-mogul in the real estate industry by simply scaling out this single strategy. Some of the most successful real estate investors in the world praise it and claim that it works.