When you make an extra $1000, how do you spend it? Do you pay off your credit card bills? Do you go on a shopping spree or do you put it in your savings account to use on a rainy day?
As a business consultant, I would suggest that you invest that extra $1000 and watch it grow over time. In this article, I will share with you 5 ways how you can invest the $1000 to make some extra passive income. Yes, it is true. You can turn the extra cash you have into $1500 or even $2000 or even more. All of the 5 strategies may not apply to you, however, choosing one strategy might be a good for you and allow you to make money in the long run.
5 Ways to Invest Extra Money
Invest in an Exchange Traded Fund (ETF)
An Exchange Traded Fund known as an ETF for short is a combination of an index mutual fund or a stock fund. ETF’s are great because it allows the trader to buy and sell stocks whenever the market is open for business. This will give you more control over the ETF holdings. There is a low cost to trade ETFs and is a great and popular choice for investing. There are over 650 ETFs on the market and you can choose any ETF that will fit your investment strategy. TD Ameritrade and Charles Schwab are one of the leading low-cost ETF investment platforms and are a great source to get started.
Sell Furniture on Craigslist
You can easily find great furniture on sale on websites such as Craigslist or even at open houses. One great way to invest money in is to purchase antique furniture from such platforms, fix them up a bit and then resell them on eBay, amazon or even create your own website and make a profit from it. Antique furniture is extremely valuable and there is a huge demand for it. People do not realize the value of such things. The best way to invest and then sell for a profit is to find rare gems amongst the clutter and junk that people sell and market it to new customers who value such things. Another great website where you can sell antiques and furniture is Etsy as many are already doing so.
Start a Niche Business
What are you passionate about? Do you like animals? If so, then you can easily start a pet sitting, pet washing or even a pet walking business in no time. Do you like to write? Start a blog or even provide services to other bloggers and write for them. This will not only bring in money but will also build your publishing portfolio and bring you recognition. Another great way to make money is to purchase products on sale from different websites or even from stores and sell them on eBay and amazon for a profit. There are several business ideas you can start with a small investment. However, a good idea would also be to educate yourself on how to run a successful business and see how you can grow your initial investment to a steady income. It surely is a great feeling to turn your passion and interests into a business venture.
Read More: 12 ultimate ways to make money
Invest in Stocks that pay Dividends
Another great way to make money is to invest in stocks that pay a good dividend. You can make a quick search on google to see what stocks pay a high dividend and invest money into them. It is a great way to add another strategy to earn some passive income. Stocks that pay dividends are usually the ones that also perform well. Over time your stock price will also go up which will make you a profit. You can also easily sell the stock and make a profit from it. Check out the Robin Hood App if you want to trade stocks at zero commission.
Peer to Peer Lending
Peer to Peer lending has become a great way to make some extra money. In this strategy, you can lend money to other individuals or businesses that require funds. There are platforms like Prosper and Lending Club that you can sign up for and lend your money to interested people. This is done at an interest rate which is based on the client credit score and a few other factors. The client will then have to pay back the money with interest which you will receive when the client pays back the full amount. According to the website, investors can make an annual return of about 7% – 9% or even more in some cases.
There are several options to invest the extra money you may have and grow it over time. You should definitely consider some of these options and figure out what is the best one for you.
If you have any other great investment ideas feel free to leave a comment below and share it with the rest of us.
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