Congrats! you’ve managed to save $1000! But what next? Now is the time to think about the long term. What are your goals for the future? And how can you use your current savings to generate more wealth?
Here are some ideas:
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Own a Piece of Google, Apple or other Companies
One common trait of pretty much every millionaire is they own stock. Even with less than $1000 you can start investing in stocks and own part of a company like Google, Apple or Netflix. When these companies profit, so can you!
A lot of people use eToro in Australia to invest in these companies without paying any commissions on U.S stocks. eToro also lets you buy fractional shares so you can invest with as little as $50.
Even if you don’t want to invest real money in stocks, you can still sign up on eToro and practice buying stocks using virtual money for free.
Another option for buying stocks without commissions is Stake. You can buy stocks on Stake with as little as $5. And if you sign up here, you’ll get a stock for free!
Did you know that thanks to inflation your money is worth a little bit less every year. It’s the reason why your parents were able to buy a house for so cheap! So if you put all of your savings into a bank account, over time you’ll lose wealth due to inflation.
One way to counter inflation is to invest. I like to use Micro-investing. This is where you invest small amounts such as $5 at a time into a portfolio of stocks and bonds. I use Raiz for micro-investing. Each week I invest a small amount, which really adds up over the course of a year. The good thing about investing in Raiz is that it’s designed to grow your wealth. Your money is invested into hundreds of stocks. As these companies grow, so can your wealth.
If you sign up to Raiz using this link, you’ll get $5 for free!
Risk a Tiny Amount on Something that could be huge
One technique millionaires use to build wealth is risk a small amount of capital (<1% of their investing capital) to bet on something that has the potential to go big.
Bitcoin and Cryptocurrency is one example of “big bet investment”. You can invest a small amount and still make a huge return. Remember to never invest more than you can afford to lose in Bitcoin and other cryptos. It’s a still a new class of asset. While there is plenty of potential. There is also risk.
I like to use CoinSpot for investing in Bitcoin in Australia. It has a huge selection of cryptos to invest in, and they are a trusted exchange that is based in Australia. You can also trade Bitcoin through eToro.
Generate more income
The secret of becoming wealthy is learning how to turn your income into more income. I did this by starting a blog as a side hustle. It happened to turn into a full time income and I started to make more blogging then I did with my 9-5 job.
Once you’ve got $1000 in your bank account, look at ways you could turn this into more income. Many wealthy people do this by buying a business. While buying a business is out of reach for most people, starting a side hustle like blogging can easily be done for less than $100.
I recommend starting a blog on Siteground – anyone can setup a blog, even without technical experience. Once you have a blog thats generating income, you also have a sellable asset. Profitable blogs can easily sell for $100k+! If you invest a little bit in an asset like a blog upfront, you’ll give yourself a shot at generating much more income later on down the track.
Setup an Emergency Fund
An emergency fund is a savings account that is set aside for emergency purposes such as fixing a broken down car or paying for medical expenses. In an ideal world, an emergency fund would be around 6 months worth of your living expenses. That’s not realistic for most people. But even just a couple of hundred dollars set aside could mean the difference if you suddenly find yourself with an unexpected bill.
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