How to Invest 1,000 Dollars
$1,000 is not a lot of money in today’s world, while at the same time is still difficult to make and save $1,000 out of most 8 to 5 jobs, even in rich countries. In most places of the world, in developed countries, you can find work that easily pays $1,000 per month, but the cost of living is so high, that it will take you months to actually put aside this much money. So the best way to invest 1,000 dollars of your hard earned money is to look for investments that can work best for you.
If you can afford the time, and have expertise in the stock market and in financial trading, then you can actually do commodities trading, even with such a small amount of money, and start growing your trading account fast. You can become a specialist in one market, or commodity such as corn or gold, and do all your trading using binary options. Binary options, when used in the usual popular ways, and through the use of classic indicators, are risky, and you most likely stand to lose money. That is the natural barrier that scares away many new investors and traders. But in reality, there are effective ways to trade a financial market or a commodity, very profitably, through binary options. Binary options offer some key advantages, because they offer limited risk per trade, and the possibility to devise complex directional trades, ones having hedging insurance.
Above all, binary options are very affordable, you can play around with very small value options, to test the waters. And even after a series of losing trades you will not blow your account, as opposed to jumping to a spot market trading account, where a single open losing trade can keep on losing more and more money. That’s the biggest benefit of binary options. Another big benefit is the One Touch binary Option, which can offer massive payouts, as much as 500% within a month, and the market price predictions required for such trading, are actually possible in commodities.
Another way to invest $1,000 is in the antiques market. This market is very slow and illiquid compared to the financial markets, and you won’t be able to make fast, monthly profits. $1,000 will not get you far in the antiques market, because even discounted antiques and collectibles are still expensive. But you can certainly invest wisely, in antique items such as clocks, and if you have the time and the passion to learn more about these items, you can learn how to buy them slightly damaged, at big discount, repair them, and then sell them on for a good profit. Antique clocks are perhaps the only antique items that you can actually repair yourself. All other antiques, such as oil paintings are very difficult to repair and require highly specialized methods. The antique clocks market is huge, and you can invest more and more in this market. Some clocks are worth easily over $5,000 in the open market. This is where I would invest $1,000 without any hesitation, the market is illiquid and difficult to find good buyers fast, but it’s a stress-free investment.
Antiques that have mechanisms, such as gears and springs tend to break down, and you can find them at big discount when broken down. And they are difficult but possible to fix. Antique clocks are a great way to invest even small amounts of money, but also other types of antiques that have gear mechanisms in them, such as music boxes and mechanical banks can make great investments.
If you are not sure whether financial trading or antiques, is a better choice for you, you can try out both. You can try binary options for very small amounts of money, while investing $500-$600 in your first antique. In any case, you should avoid antiques that were not made by some famous manufacturer. Antiques that are very cheap, but bear no reputable names, are not in high demand. It’s better to invest in a broken high end item, rather than a fully working no name item. Also remember that collectors who pay the most money, are looking for rare antiques, they are only interested in rare items, regardless if they are beautiful or not.
How to Invest 10,000 Dollars
With $10,000 you can do a lot more, than you can with $1,000. You can invest 10,000 dollars very safely, by doing anything a wise $1,000 investor can do, invest in antiques or in the commodity markets. But you can be more of a specialist, and go for better opportunities, where the waiting period may be longer and the rewards may be much better.
Apart from these investment ideas, you can put aside perhaps 30% or 50% of the money, and look to invest in a small business, in a developing economy. There are countries around the world. That are still rather poor, but are growing steadily. This makes investing in these countries affordable, and there are opportunities for making a lot of money. In this case there’s a lot of work involved, since you will actually have to be your own boss, or at least work closely with a business partner. The idea is to travel to such countries, see what is missing and what you could bring in.
Suppose that you put aside $5,000, in the beginning, to test your business idea. Such a business idea could be an import-export business, from one country to another, or providing a service or product that makes people’s lives easier. The opportunities in developing countries exists because most big investors think there is no money to be made there, and therefore do not research things further. Or because they tend to think in terms of economics only, and even when they do invest they attempt to make money by making a product, in a poor country, and by taking advantage of the low wages in that country.
My approach to investing is different, and does not rely so much on low wages and production costs. It’s more about bringing new ideas to cultures that want to embrace these ideas. Such a business idea can be a new restaurant, unique in that area, a small trade business specializing in some high quality coffee or tea, or the direct trade of a local product. Which you can find very cheap at particular times of the year. And which you can export at higher prices at different times of the year. Such business ideas can be tested and started on a $5,000 budget, in developing economies, it’s all about gaining local know-how. Big investors are ignoring these, because they are small as business concepts, perhaps not scalable to very large size, and because they think too much in their field of expertise. Which is usually economics, and which makes them think only about getting cheap labor.
I do believe that small businesses should rely on innovation, and not on cheap labor. You can for example invest just $5,000 in a small biodiesel making machine, and collaborate with a fish-processing plant in some poor area, in some Asian country. Where the organic waste is used for other less productive purposes, or is thrown away. That biodiesel is still expensive even in that poor country, but nobody there can afford a $5,000 machine. Not even the owner of the plant. That’s my investment philosophy, because you cannot find such investments in the developed world, and certainly your $5,000 or $10,000 cannot make a big difference in the developed world.
How to Invest 100,000 Dollars
Wise investors do their research according to their passions, it’s unlikely to research a market well if you are not passionate about it. In order to invest 100,000 dollars wisely and effectively, you will have to act in accordance with your own passion, this may be music, cars, food or fashion. And each market requires a passionate expert to research it. I happen to be passionate about few types of antiques, the stock market and some highly specialized startups in the green energy and materials sector. With $100K you can afford to invest in any of these categories, though should allocate more capital to safer investments, and less to risky investments.
Avoid real estate investments! For the most part, and in most countries, you can actually invest in few good real estate opportunities, but if you only make the down payment on a property and have to borrow the rest of the money from the bank, it may be risky. Real estate investing is subject to heavy taxation, and it only works well when you already fully own at least one property. If you can fully buy your first property, and then borrow heavily to buy more properties, real estate will make you millions. But taking too much risk from the beginning may not work, and it will result in losses.
Invest 30% to 50% of the money in antiques, antique items whose value you can estimate, and can get them at a discount. Ideally, you want to be buying antiques that big auction houses will accept later on, in their high end auctions. Because that’s where the best money is paid for antiques. Famous brand antiques, antique stamps, or items that have provenance of ownership, and were once owned by some famous person.
Invest $10,000 in a startup. I personally prefer startups related to new inventions, green energy and new products. But you may find just as good startups in your own category of passion. Startups are risky anyway, most of them fail, but you can learn a lot, especially from the ones that fail. In fact, you should spend more time studying failed inventions, ideas and failed startups, rather than the ones that already made millions. Because the people who tried and failed, may be launching a new startup, and this may have a very high probability of success.
Startups involved in new technologies, such as green energy, energy storage, and the materials used for these inventions, could be great investments, such as a startup specializing in some kind of new alloy, or nano-material.
Startups that make the most money are usually the ones that make a new product or idea, which solves a problem or reduces the cost of solving a problem. Usually, these are not big famous inventions and ideas, but rather obscure and small, but still big enough to make many millions. That’s the way to invest $10,000 and stand to make $100,000 or more.
You can invest the rest of the money in the stock market, and specifically in undervalued stocks, such as high quality gold mining stocks, or other undervalued stocks. You can either trade in both directions, or simply buy and hold. Commodities and commodity stocks are among the safest areas in the stock market, and the most predictable.