When people think about investments, they typically think of stocks and shares, foreign exchange and other kinds of industry-standard things. However, when you make your first thousand, be it dollars, GBP or any other currency, you’re probably looking to invest in something in order to get a return on your money. After all, it’s a lot better than simply giving it to the bank and watching your interest slowly rise.
One of the best ways to invest your first thousand is to start a business. It could be something as simple as an online blog, an at-home business, or you could even set up the hardware and promotional material that will allow you to set up your very own freelancing career. Even businesses such as Amazon and Uber rarely give their employees bonuses when they make huge profits—it’s because they invest all of their money into their company to make even more money for the next quarter.
In order to obtain wealth, you need to make smart investments like other corporate giants. Any penny you make which isn’t required for maintenance costs or your own personal well-being should realistically be put back into your business—that’s what makes a smart investment. But let’s take a look at some other smart investments you can make, and where you can put that first thousand.
Penny Stocks
Although trading in stocks and shares can be seen as a gamble, trading in penny stocks is a much smarter alternative. If you’re wondering why penny stocks are worth the investment, then you only need to look at the potential gains in order to realise their potential. Many companies start off as penny share businesses. Their shares are very low in price and their value fluctuates a lot due to the nature of startups. However, once they gain traction, it’s not unlikely to see a $1 stock shoot up to $80 or higher and eventually become power stocks like other companies. If you’re smart about analysing the industry and making smart decisions, then you could make a lot of money by investing your first thousand in penny stocks.
Peer to Peer Lending
Over the past couple of years, peer to peer lending has seen an explosion in both popularity and growth due to the ease of use and attractiveness to both lenders and borrowers. They usually offer lower interests rates for people who want to borrow, and the lender receives a higher cut on their money as opposed to giving it to the banks. There are many ways to set up peer to peer lending, it’s a sure way to make money without having to rely on banks, and you can do it via web platforms, making it a simple way to watch your money grow. The returns are attractive despite some inherent risks, but it offers people a greater degree of control over their money.
Summary
Although starting a business is probably the smartest way to see a return on your first thousand, there isn’t all too much you can do with it and you’re going to need to invest more money in order to see better returns. However, starting a small business such as a blog, YouTube channel or freelancing career can be a fantastic alternative to a traditional business with employees. Alternatively, penny shares and peer to peer lending are much better ways to see more instant returns on your money without exerting much effort. bn
