So you have 1,000  Euros or 1,000 Dollars in your bank account and your fingertips are itching to do something with them. You know that the value of these 1,000 will diminish because of inflation and if you do not use them wisely in the short term – they might be earmarked for that Nordic cruise your better half has been hinting at for ages ….

If you are here, probably you are relatively new to the world of investing.

Investing is a thought process. It is not just about which investment options are out there. Investment decisions should include your current and situation; your age; income; relationship with risk. Ultimately such decisions need to be taken with your financial advisor. This article is here to help you prepare and do your homework before you go to that meeting.

Investing your first 1,000 should be a learning and discovery experience. It will allow you to make mistakes with relatively small(ish) sums of money. Learning your investment lessons early can save you a ton of money along the way. Your own investing mistakes are probably worth more than any MBA

A journey of 1000 steps starts with the first one. That is investing 1000 x 1000 times = i.e. million 🙂

Some Questions to ask about investing your first 1,000  Euros

• How much high-interest debt, do you have and is it worth paying it off first?
• Do you have an emergency fund to cover sudden expenses?
• How much of your wealth does this 1,000 Euros represent?
• What will happen if you lose the 1,000 Euros?
• Are you investing your own money or someone else’s? (Maybe your spouse’s)
• What will you need to forego if you lose this money?
• How old are you?
• What is your life expectancy?
• What are your long-term investment plans?
• When will you need your money back?
• How high is inflation in your country?
• How much detailed control would you like to have this investment?

What is your relationship with risk? Losing money is easier than making money.

What are the objectives of this investment

• Regular Income
• Capital Growth
• Testing the waters
• Part of a dollar cost averaging strategy

Non-Financial Investment

Non-financial investments can have a significant impact on your financial bottom line. Education and investing in knowledge will make you more aware of the options that exist out there and the risks they carry.

If complex investing in is not your cup of tea, then focusing on other forms of investing makes sense. With $1,000 one can invest in many different side hustles, and in the long term, the ROI on such activity can be much higher and satisfactory than investing in a passive investment.

Investing in yourself can provide a renewed sense of self-worth. Smart investments in oneself can deliver tangible financial results.

Who knows, maybe that new suit, your new personal trainer, the course you are attending will result in finding the man/woman of your dreams,  a promotion or a new job opportunity.

Non Financial investments

• Education
• Books
• Create a Side Hustle
• Increase your personal and professional market value
• Donate part of it to a cause you truly believe in

Investing ideas on how to invest your first 1,000

Do you have any more ideas? List them in the comments section!