1. Invest in a High-Yield Savings Account

While not a traditional investment you might consider, a high-yield savings account can be the perfect investment choice, especially if you are saving money monthly.

And if you want to play it a bit safer for now with your $1,000, then a savings account with interest might be your preferred choice.

There are plenty of online bank accounts that accrue great interest but have other options for your money.

Other investment vehicles will have a much higher rate of return as most banks offer 1-3% interest. But these banks are FDIC insured, so you can’t lose it all, and you can withdraw your money at any time.

2. Invest for Retirement

Investing in your company’s 401k is always a great choice. And it’s even better if your company offers a company match.

It’s an easy way to get your cash stacking.

Most employers with a 401k will match half or all of your contributions, typically up to 3% to 6% of your salary.

And if you don’t have a company 401k, you can open an IRA. You could choose from two types: Traditional IRA or Roth IRA.

Now, with those options are some rules and things to know, but they are very easy to open with any financial institution.

I prefer a Roth IRA because it offers tax-free growth and tax-free withdrawals in retirement. When I first opened mine a few years ago, I only had $500 to start with.

And since then, I’ve maxed it out the last three years.

3. Consider Purchasing ETFs

When it comes to your 401k or IRA, you also have a massive amount of choices of funds to invest in.

The challenge is many mutual funds or index funds have minimum investment costs. Some might be at $1,000, but many will be over that. I’m talking $3,000+.

But there are other options.

Sure, you can buy some individual company stocks, but this is not ideal and puts you at a lot of risks.

Personally, I only recommend that option when you have more money invested and can risk a small amount to play around with.

However, this is where exchange-traded funds or “ETFs” can be great options. ETFs trade on an exchange like stocks. And there are all types of investments like various stock sectors, commodities, or bonds.

ETFs are great because they offer low expense ratios and fewer broker commissions than buying the stocks individually.

So when you are ready to invest $1,000 in the market, you have more options to diversify. You can learn more about ETFs here.

4. Invest $1,000 in Real Estate

Many people would love to invest in real estate but get scared off by the thought. For one, it can be very expensive, quite a bit of work, and you really have to understand how real estate works.

Yet, real estate is a great option to build wealth and diversify your money.

And I’m not saying you shouldn’t learn or try, but $1,000 typically won’t get you too far. However, that has changed thanks to real estate crowdfunding sites.

These platforms allow you to invest in commercial properties, single-family homes, and apartment properties for as little as $500.

For example, two of my favorite platforms are Fundrise and DiversyFund, which are only $500 minimum investments.

But if you are still a bit unsure, you can also try Groundfloor, where you only need a $10 minimum to get started in single-family home investing.

Another option you have is with a REIT, which there are ETFs and Index Fund versions in most investing institutions like Vanguard. However, those typically follow the fluctuations of the stock market.

5. Use Rob-Advisors To Your Advantage

Just like digital companies have appeared for real estate, the age of robo-investing is also here. Essentially, instead of worrying about how to invest or trying to learn the best options, you let an algorithm handle that for you.

Robo-advisors use advanced artificial intelligence based on a series of questions you answer and help you invest based on those answers.

This means you can get many of the benefits of a financial planner for a much lower cost and less headaches managing your investments.

There are a few on the market that offer different features, but here are two options you might want to consider:

6. Invest in Your Own Business

If you have ever wanted to start your own online business or side hustle, investing $1,000 in your project might be a great choice.

Many side hustles and online businesses do not require a lot of start-up costs, so this money can go to great use in getting you started.

For example, I started Invested Wallet with less than $1,000, and I’ve made that money back, plus more this year.

Before you jump in, make sure you do some research and brainstorm about your business.

What are you passionate about? Is there a market for what your business might do or sell? Even think about what you enjoy doing; many hobbies can make you money.

7. Invest in Your Kids

This only applies if you currently have any children or are planning on having some soon. But an excellent way to invest $1,000 it start planning for your kids’ education.

This is to say that you have plenty of time to start investing. However, if your child or children are now close to high-level education, you may need to ramp up your savings and investing.

But if you are just getting started with your family, taking that $1,000 and opening a 529 plan can be great. The money invested in a 529 is after taxes, and your investment grows interest-free.

And when the money comes out of the account and is used for education expenses, there are no taxes to worry about.

Now, it doesn’t mean your kids will go to college in the future or need to, as there are plenty of options for them in adulthood.

But it’s good to be prepared and have a family financial buffer for when the time comes.

Best Ways to Invest $1,000 Per Month

Hopefully, the above options give some ideas of how to invest $1,000. But, let’s say you got a rhythm going, and you will have $1,000 per month to invest.

First, great work getting to that or working on your finances to have that option.

For those of you who are not there or think it’s impossible, just stay patient and keep working at it. It took me a good three years before this was a reality.

How did I do it? Working on my career worth, increasing my salary, cutback unnecessary spending, paying myself first, teaching myself personal finances, and staying patient.