This has to be one of the most requested video topics I get, especially for the people just starting out. This $1000 amount should give you a head start in whatever you do and begin the foundation to you making a lot more money. Feel free to add me on Snapchat/Instagram: GPStephan
Let me first preface this by saying that it really depends WHAT you want to do and what your situation is. I’ll give you my own recommendations, but ultimately your own situation will dictate what’s actually best for you. If you want to start a business, I’d likely give you different advice than if you want to invest long term in something passive. So I’ll try to cover as much as I can.
My first and biggest piece of advice for anyone, no matter what you want to do, is to use that $1000 to invest in yourself. This will likely give you the highest return on investment. I’m not talking about spending it all on a $997 course, but use it towards good books – use it towards learning, taking seminars, taking some courses or classes, and expanding your knowledge about what you want to do. Investing in yourself is a good idea no matter how much money you have and would be the pinnacle of what will generally get you the highest ROI.
My second piece of advice is for someone who wants to start a business. I’d recommend using that $1000 to get you towards starting that business you want to do. If you want to develop a website, use that money to start the website. Want to start an app? Use that money to start an app. Do you want to do something online but don’t have a computer capable of doing it? Use that money. If you want to wholesale real estate, use that $1000 towards marketing materials. Figure out what you want to do and see how you can stretch your $1000 to make your business a reality. Even if it fails miserably and you lose your $1000, I promise that will be the best learning experience of a lifetime. That $1000 mistake will be worth way more firsthand than any college class could ever teach you.
My third piece of advice is for someone who wants a more stable, long term investment they can pretty much just forget about to give them some passive returns. In this case, I’d highly recommend a low-fee index fund, like what Vanguard offers. They have several funds with $1000 minimums that should get you a good head start on investing long term. You can also get a ton of diversification depending on what fund you go with and this would give you a solid foundation for investing. You’ll also learn some background about index funds and diversification in long term investing.
My fourth piece of advice is for someone who wants to learn the stock market and doesn’t mind putting their money in riskier investments. With this, you can trade individual stocks and you will learn a TON by trading firsthand. The downside is that commissions will eat you alive when you’re making regular trades. BUT, it’ll be an amazing learning experience. You can do the same with cryptocurrencies and I’m sure it would be an equally good learning experience. Just understand the risks involved.
The whole purpose of this first $1000 should really just be to use it to jumpstart whatever it is that you want to do. Because lets be real, $1000 is not a lot in the bigger picture. However, $1000 should be enough to start moving you in the direction to begin making $10,000…then $100,000…then a $1,000,000. It’s about creating a foundation that supports you to continue making even more money. It’s not about maximizing your returns at this level, it’s about creating learning experiences at this level where losing 10% costs you $100 vs losing 10% on $100,000 costs you $10,000. The mistakes you make on this level will be avoided when you begin doing things on a much larger scale.
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