At certain point of time, you may be lured towards spending the amount on purchasing new outfits or on any short vacation. However, this little amount has in store great prospects of earning you long-term financial footage.
So, if you are wondering how to invest $1000 or so for a big return, pursue the following tips.
Invest Your Money First In Emergency Fund:
Establish an emergency fund. This idea is highly recommended if you are still single and your financial hopes solely rest with only one paycheck. Your hand-to-mouth earning might put your credit rating at stake. So, go to your bank to create a money market fund. This option would not earn you great interest rate. However, it would allow your money to remain safeguarded. Next time when your sudden job loss or your illness makes you stumble, you can go straight to the bank instead of swiping your credit card. By saving interest rate, you can make much of your little investment.
Invest Your Money First For Your Retirement
Your second option is to have this little amount added up to your 401 (k). For this, you can approach the HR department of your office and make a request that you want to take $1000 from your next month paycheck. It might turn out to be your best investment option.
Pay down high-interest credit cards
Your next option of investing $1000 is to pay down high-interest credit cards. Using the windfall to pay your credit cards is highly recommended for people who have $1000 or so to invest. If you put the amount in bank, you might get a meager interest of only four percent on the investment. But paying off a credit card would allow you to save 14 to 18 percent.