Today, as we still face obstacles with our economy, $1000 can go a long way to help you. If you are a millionaire then this amount might seem insignificant; however, if you are the "Average Joe" then $1000 can definitely make an improvement in your life. There are a number of ways you can choose to invest your money.
Lower Your Monthly Debt
If you have a student loan, or even a home mortgage, you can use your money to pay down your debt. If you owe $100,000 on your home mortgage it might seem that $1000 will not reduce your debt much; however this money will help to create a lot of interest payment over time.
Invest in Blue Chips with Strong Dividends
Some people might find this type of investment a bit risky; however if you choose a massive corportion, that has reached a point of relative inertia, this creates a picture that such corportations will seldom face a collapse. You should consider looking at such companies as food makers or telecommunications companies. If you find companies that yields over five percent then this is a strong return for your investment. It is likely that this yield will also bolster the share prices over a period of time. If your share price drops you will still continue to receive dividends. Although you are taking on some risk this is also a path to increase returns over a longer term investment.
Invest in Your Company's 401k
If your company offers a 401k program, with a match, this might be one of the best places for your $1000 investment.You will automatically double your money. Your $1000 turns into $2000 with your company's match. How can any investment match this? Another great thing about the 401k plan is that you can sign up to automatically have a certain amount of money transferred from your bank account to your 401k each month. This is a painless way of automatically saving money while you double each of your deposits. Another positive aspect is the fact that the 401k is not taxed. This means that if you sign up to withhold $100 each month, from your account, it will not be taxed; therefore, your paycheck will be smaller than your $100 contribution. An example, if you have a monthly contribution of $200, and you are in the 25 percent tax bracket, you would actually see $150 deducted from your check opposed to $200.
No Matter What, Try to Invest Your $1000
When you have an extra $1000 that you did not plan to have, it is very easy to suddenly decide to go away for the weekend to use the money; or, you might decide to spend the money on new clothes. The temptation is always there; however, the wisest thing you can do with the money is to invest it - this will be a great investment for your future.
The above article was written by Roy Swingle, article writer for OrlandoROI, the best Orlando investment property search on the web.