How to invest 1000 dollars in the most profitable way: 1 Introduction
Do you have a savings of 1000 dollars? and do you want to invest it to hope to make it grow? In this case, find out how to invest $ 1,000 in the most profitable way possible with the least risk.
The importance of the safety fund
We will see how to invest 1000 dollars in order to create interesting potential profits with the maximum possible security.
First of all, know that creating a safety fund is of the utmost importance. What exactly? Put money in a bank account to compensate for various contingencies. That basically means that if you only have 1,000 total savings, you shouldn't invest them. If you have more, that's when you can invest $ 1000. In fact, imagine that you put your $ 1000 in and if you suddenly break a leg or your car breaks down, you will not be able to pay for the care or repair of your car. The safety fund is the foundation of any successful investment. In fact, you can start with peace of mind, since you always have money available in an emergency. And if you ever fail with your investment, that money can always make up for any budget shortfalls that may arise.
Saving a security fund: how and how much?
To keep your fund safe, you will need to calculate your mandatory monthly expenses. These are the expenses that you will absolutely have to pay, for example, rent, electricity, fuel, subscriptions, food, insurance and others. This is about making an anticipation of at least the next 3 months in case of loss of your investment. How to invest $ 1000? First you must know that if you really have to invest these 1000 ?, first you must have at least 3000? as a security fund that you will not touch and that will only serve you in an emergency. Afterwards, there are no real rules about the safety fund: save an amount that makes you feel comfortable and safe, that will be more than enough.
So it is important that this security fund grows passively, but also that you insure it, before asking yourself how to invest 1000? in a more active investment. You are certainly well aware that today we are in the midst of a critical economic crisis. We have no idea what the future will be for your currency or for national and state banks. It is quite possible that fiat money as we know it will be devalued. Therefore, it is strongly recommended to place your safety fund in banks abroad and in various strong currencies. If possible put your money in a foreign account. Rest assured that it is a perfectly legal procedure, which you only have to declare to the tax authorities by filling in a very simple form.
In the next installment we will start with online banking, do not miss it.