A thousand dollars does not seem like a lot of money to invest these days. But it is a good sum to try different investment strategies that can lead to good habits that can help different people achieve their financial goals.
Here are three options to start in 2018.
1. Invest to win: get a training certificate in a dynamic business to improve your earning capacity
When we think of investments, we usually think of financial investments as stocks and bonds, which generally pay higher returns than investments in the money market and CD. But there is a much more fundamental type of investment than that: the acquisition of educational and training skills that improve the ability to profit in the market.
To be fair, $ 1000 will not buy you as much education and training. But you can buy a certificate in one of the hot market areas. As an A + or MCSE training program, a Cisco Systems certification or a content marketing certification that can improve your technical skills.
There are also all kinds of professional certificates for those who prefer to work with people instead of with technology. As a bartender certification.
2. Bad debt: save a lot of money in interest payments
When it comes to debt, there is a good debt and a bad debt. A good debt accumulates to buy goods and services that improve the earning capacity. Accumulated debt to help pay for school, for example, or to prepare for a career or to establish a business.
Bad debt is accumulated debt to buy merchandise that is not really necessary in the first place, such as clothing, cooking utensils and club memberships that are never used.
Worse yet, bad debt usually carries financial charges and interest payments that cause overtime to grow exponentially. Some credit cards charge 30% interest. This means that the outstanding balance doubles in 2.5 years!
That's why reducing the bad debt by $ 1000 could be the best investment you made in 2018.
3. It invests in CD of high banking performance.
The bank's CDs have lost their validity in recent years. For an obvious reason, interest rates have been extremely low, so CD rates are not compatible with alternative investments, such as stocks and bonds that have been accumulating at those low rates.
But things have changed recently with the increase in interest rates. That means that 2018 may be a year in which financial markets could "go back to the middle".
That means that stocks and bonds can eventually correct, making CDs a good investment option, especially for conservative investors who can not afford the risks associated with investments in stocks and bonds.
