7 Best Ways To Invest $1,000 Today

Shawn Manaher
Shawn Manaher
Updated on December 8, 2022
best ways to invest


There is no better feeling than investing money and receiving a great return on that investment. It is a wonderful experience to find something that could make you some money, satisfaction, peace of mind, or future success and then putting your money into it.

Not everyone has this exact amount but there are many people looking to invest $1,000 into the right things. They want something that will pay them back, grow their investment, and make their lives better.

It is estimated that Americans have $16 trillion in disposable income that they can use for anything. What if you have $1,000 that you want to invest correctly? You’re in luck, because you have many choices. Here are the 7 best ways to invest $1,000 today. Are you ready to receive a lot for the money you spend?

Create A Savings Account

When you were a kid, there was a chance that your parents opened a savings account for you. They probably told you to never touch it and just let it grow. It might have seemed like a boring way to spend your money back then but it’s a great way to do so now. In fact, if you have $1,000 that you want to invest wisely, the best way to do so is to put it into a savings account that will keep your money safe and help it grow.

Investing your $1,000 in a savings account might not seem like a wise move because inflation is high and the greatest bank account interest rates are approximately 4-5% right now. But the sad truth is that millions of homes lack the resources necessary for a crisis. If that is you, opening a savings account is a wise decision and one of the best ways to invest $1,000.

Here are some reasons why basic savings accounts are a good option: There will always be bad times when you need to have a little extra funds laying around to assist you. 

Although it is hard to forecast all of life's unexpected ups and downs, including when they will happen, having some money on hand will always help to soften the blow. And the meager yield from any savings account is worthwhile if it prevents you from taking loans at a high interest rate, such as using a credit card, or borrowing from friends or family or peers. You should aim to have six months' worth of expenses saved up.

A rainy day savings stockpile can also be strengthened by putting some of your hard-earned money in CDs or bonds. Even though the trade-off is that they're more difficult to obtain if you suddenly want the funds, the interest rates are frequently a little greater than those of a straightforward savings account.

Your parents were right when they told you to start a savings account. You might not have been interested in it as a child but as you get older and you become an adult and start spending your money on adult things, you can see the benefit of a savings account and the interest it can grow over the years. It is possibly the smartest way you can invest your $1,000.


  • You can open a savings account at just about any bank in America
  • You may receive benefits and special perks depending on the financial institution you choose
  • It will help you when you need cash for purposes you haven’t thought of
  • Will only gain more money if left untouched because of interest rates

Invest In An IRA

You likely have a job if you are looking for the best ways to invest $1,000. If that’s the case, you likely work hard and earn your cash through your dedication and drive and enthusiasm for doing a good job.

You should get more than just a weekly paycheck when you are working hard for a job. Ideally, your business is putting money into a retirement account for you but if not, you can set up your own individual retirement account, or IRA. 

What is an IRA? It is exactly what it sounds like: a fund that will pay out to you when you finally retire, whenever that may be. You want to have some money to sit on and use when you are no longer working and an IRA will provide you with that.

If you have $1,000 that you are looking to invest, you would be wise to open up an IRA. It has never been easier to do so. You can go to just about any bank across the country and ask about setting up your account. Then you can put a monthly, weekly, or even daily investment into the IRA and it’ll grow over the years and, when you decide to hang up your hard hat and stop working, you’ll have a lot of money to rely on.

$1,000 is a lot of money to invest initially and it’ll grow into something substantial. It is a great start to a healthy, comfortable retirement fund that will pay out long after you retire. 

It is important to keep in mind that you will be taxed heavily with penalties if you withdraw your money from the IRA early. Therefore, you should be committed to keeping the money in there. File it away in your IRA and just let it sit. Don’t think about it and definitely don’t think about withdrawing it. 

If you want to invest your $1,000 in an IRA, you can start by simply walking into or calling the bank you use and see what options they have for you. You will be shocked and excited to see the way they try to sell you on the idea of investing your money in an IRA that they provide. But only choose to sign up with the bank that offers you the most.


  • You can invest up to $6,000 into your IRA
  • Once you turn 59 ½ you can withdraw your funds without a fee
  • A Roth IRA is an after-tax contribution, so it gets no dedication

Invest In A 401(k)

Now, if you don't want to set up an IRA, you don’t have to. That is especially true if you have a company that is willing to offer you a 401(k). But even if your place of business is giving this to you because of your commitment to them, you can still put more money into it. In fact, investing $1,000 in your 401(k) is a rather brilliant move.

The best part about investing in your 401(k) is that your company might match the contribution that you make. If your company offers a match, then it will deposit the same amount that you contribute to your 401(k), up to a certain percent.

So if the place you work for says it’ll give you a 5% match on any contribution, it will put 5% of your investment into your 401(k). So, why wouldn’t you want to invest your $1,000 into your 401(k)? Imagine how much money your company would match when you do that.

A 401(k) is a retirement fund that will be waiting for you when you are no longer working. However, unlike an IRA, a 401(k) will be offered to you from your place of work and will often be matched by them as well.

If you are thinking of investing your $1,000, you should check in with HR for your work. They will give you pointers and tell you the proper steps to follow to smartly invest your money in your account and make sure that it’ll be there waiting for you when you finally reach retirement age.

The thing about a 401(k) is that it can truly change your life and make your twilight years enjoyable, fun, and stress free. But so many people aren’t even aware that they have one. You might be getting important information about your 401(k) in the mail and it might just be sitting in an anonymous envelope from your employer. That is why you should talk to your HR department if you are thinking of putting your $1,000 into your 401(k).

You could be making a lot of money on your 401(k) and could be making so much more if you invested some or all of your $1,000 into the retirement account provided to you from your employer. 


  • Many companies make it easy to invest in your 401(k)
  • Depending on where you work, your business might match anywhere from 3%, 5%, and beyond

Play The Stock Market

Investing in the stock market is not always easy and it certainly comes with many challenges and stresses. Additionally, it has a steep learning curve so you will really want to study hard if you choose to go down this route. 

But playing the stock market is one of the best ways to invest $1,000. It has always been attractive, even to those who have never invested before in their lives.

There are many ways to invest and many benefits to each type of investor. You can simply research the market, find a stock that you like, invest your $1,000 and then walk away and let the market rise, fall, and just do what it does.

You can also become a day trader, someone who puts their money into a stock in the morning and then moves it around by the end of the same day. This requires a lot more attention to detail, a lot more work too, but you can cobble together a big, sizable amount of cash in a short amount of time.

The stock market has provided a lot of money for a lot of people for a lot of years. And the best part about investing your money this way is that there is plenty to read about investing and many methods, tricks, and pointers that you can pick up from proven investors who have made a pretty penny over the years.

From Apple to Walmart, Berkshire Hathaway, Citi Bank, Google, Amazon, and beyond, there are just so many stocks that you can put your $1,000 into. An entire world awaits anyone who wants to try out the stock market to see their investment grow and flourish on Wall Street.


  • You have so many options for publicly-traded companies
  • Investing has never been easier with multiple apps that allow normal people to invest
  • There are plenty of sources to learn about the market and find the stocks that are right for you

Get Into Cryptocurrencies

Cryptocurrencies are a rather new sensation but it has paid out a lot for many investors over the last few years.

Have you heard of Bitcoin? Of course you have, it has been in the news so much lately. But you might not know how it works and the minute details about it and the rest of the cryptocurrencies out there. But the bottom line is this: cryptocurrencies are a form of digital currencies that can be used for so many goods and services. The only thing about crypto is that you never physically hold it in your hands, it is always only online.

There are over 3,000 cryptocurrencies in existence, which means you have a lot to choose from. But there are many online forums, books, and newsletters that you can sign up for. Just browsing them will give you some pointers and have you headed in the right direction when it comes to investing.

You need to be aware of one major thing: the cryptocurrency market is very volatile. It’s not uncommon for crypto to lose a lot of value in a short amount of time. You should expect many ups and downs when you are investing in crypto. But you should also be prepared for a sizable return on your investment.

Which cryptocurrency do you want to put your $1,000 into? Which one is the most exciting? Which one seems like the next big thing? That is for you to decide. It’s a tricky, complicated, and, yes, risky investment but it could pay out very well for you.

It is important that when you are investing your $1,000 in cryptocurrency you remember a few things, beyond the volatility of the marketplace. Firstly, there are many different cryptos, or coins, you can put your money into. You don’t have to invest all $1,000 in just one choice. You can actually put your money into many different coins. There are many coins that cost less than a dollar to invest. Spread the wealth around if you have faith in the cryptos you find.

You should also spend time researching cryptocurrency before you actually put your money where your mouth is. Don’t rush! Spend your time learning all you need to know and read, read, read a lot so you know what you’re talking about and what you’re doing.

There is a lot to learn about cryptocurrency and it can be a great way for you to turn $1,000 into a whole lot more. But do not enter this marketplace without studying it thoroughly first.


  • There are so many different cryptocurrencies to choose from, the choices are seemingly endless
  • Investing has never been easier, with many different apps and sites
  • You can spend a lot of time reading about and researching cryptocurrency, thanks to sites like Reddit and other online forums
  • The market can drop quickly but it can also rise quickly too

Peer-To-Peer Lending

Maybe you want to take your $1,000 and put it into a business or idea that you think can pay off and become the next big thing. If that is the case, then peer-to-peer lending is one of the best ways to invest $1,000. In just a short amount of time, you can take your money and offer it to those who need it and then watch a cause or business you believe bloom, blossom, and flourish into so much more.

What is peer-to-peer lending? It is a way for you to give small amounts of your own money, or capital, to businesses and people that are trying to start companies or pursue a dream. And what do you get for investing your $1,000? Well, you will get an interest rate on your return. It sounds like a great way to invest your money because if you really are smart about your investing and find something that really does take off, you can make an awful lot of money.

The thing about peer-to-peer investing is that you have many ways to do it. From Lending Club to Prosper and other up-and-coming platforms, you can invest $1,000 or more today and quickly see the return on your investment grow.

At the same time, you should really make sure you are measured and smart when you take this approach to investing. This is business, after all, and you don’t want to rush into anything. You should weigh both the pros and the cons about your possible investment and consider everything about it.

Is the marketplace right for the company you are investing in? Does it have room to grow? Do people really need the services it provides? There are all things you should take into consideration when you are starting your peer-to-peer lending career.

There is a growing number of companies, both small and large, who are turning to peer-to-peer lending to gain capital and find a way to thrive. It has never been a better time for you to contemplate putting your money into this form of investing. But there are risks and they need to be considered.

If you have ever wanted to invest in a company but have never really known how, then peer-to-peer lending is a great choice for you. For just $1,000, you can find a company that needs your money, become an investor, and watch them turn into something substantial, successful, and good for your bottom line along with their own.


  • Peer-to-peer lending has become even more popular over the years and now there are many ways to get involved
  • This is a perfect investment for people who have always wanted to be on the forefront of the business world
  • The interest rate on your return varies from platform to platform

Use A Robo-Advisor

The stock market and investing in stocks isn’t easy, and it’s not for everyone. In fact, there are many people who don’t even venture into the stock market because they are so scared and overwhelmed by the prospect of it and the particulars you have to learn.

There is no shame in admitting that you don’t want to spend all the time and energy needed to learn about Wall Street or any trading market. However, you don’t have to sit out on what could be a great investment just because you’re feeling daunted by all the time you would spend learning the ins and outs of investing.

A robo-advisor is a great approach to investing your $1,000 if you want to be a part of the stock market but don’t want to be sitting constantly at your computer, watching the market, and preparing to hit the right button at the right moment. 

A robo-advisor just makes perfect sense for the modern day and age. It is an online service that uses automation for many parts of a financial plan that people used to have to do by hand. By using a robo-advisor, you can set the perimeters for your investment like when you want to buy shares, when you want to sell them, and more. 

Then, after you have set up your robo-advisor you can sit back and just let it do all the work for you. Like the well-made, well-trained computer system it is, a robo-advisor will do everything for you and for only a small fee.

With automation involved, many of the fears that you have about buying stocks will be gone because you won’t have to be sitting at your computer getting prepared to pull the trigger at the right time. 

Robo-advisors do even more than just though, though. They can even choose the right shares for you, based upon your interests, the amount of your investment, and more. And the management fees related to robo-advisors are pretty agreeable. 

Typically, they charge about .3% annually (so if you ended up investing $10,000, then you will only be charged $3 which isn’t too bad at all). 

At the end of the day, the thing that is best about a robo-advisor is that it takes out all the pain of setting up your portfolio, running it, and exercises any trades and sales and movements that you want. It’s the ultimate evolution of the modern day stock market and it uses technology to get the job done, free of the stress and anxiety that usually comes with investing.

$1,000 is more than enough money to make a sizable investment in the stock market and with a robo-advisor, it can all be done painlessly and seamlessly too.


  • The fees associated with robo-advisors are completely agreeable and easy to manage and only take a small amount of money out of your account every year
  • You can set up the most particular parts of your portfolio and the choices you want to make
  • There are many online robo-advisors that you choose from these days
Shawn Manaher

Shawn Manaher

Shawn Manaher is a former financial advisor, has founded 5 online businesses, and is a coach, speaker, podcast host, and author.

He's been featured on Forbes, The Consults Corner on TAE Radio, The Writing Biz, What's Your Story, and more.

He loves to share his personal finance tips and money management wisdom with others to help them find financial freedom.
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