If you don’t have a large nest egg or a huge income, it can feel like there is no way to substantially grow your wealth. While it is far easier to make the most of investments with large sums, this doesn’t mean you can’t start making your money work for you. In fact, this is the only way to ensure that you’ll have much more money 5, 10, 20, or even 50 years from now! So, how can you start growing your wealth with less than $1,000? Read on to find out!
Try Out a Robo-Advisor
Robo-advisors are simply applications, websites, or similar platforms that help invest your money on your behalf. Some popular examples include WealthFront, Betterment, and Acorns. If you’re relatively new to investing, these businesses can help put your money into secure stocks, bonds, and holdings that match your interests and desired growth potential. That said, most robo-advisors charge fees for their services, so you’ll need to do your research before putting all of your money into an investment account.
Open a High-Interest Savings Account
High-interest savings accounts are one of the safest ways to grow your money. While you certainly won’t become rich overnight, these types of accounts ensure that you won’t lose your principal investment, either. Moreover, they allow you to constantly grow your money without having to research different stocks or mutual funds! Finally, savings accounts are great because they often don’t require you to pay any fees to withdraw funds. So, if you suddenly need money for hammertoe treatment at the Northwest Surgery Center, a high-yield savings account could be a lifesaver!
Invest in Crypto
Cryptocurrencies are one of the fastest-growing and most popular investments on the market. That said, they are also extremely volatile. So, if you have a greater capacity to take on risk, crypto could be a good way to quickly grow your wealth. However, if you can’t risk losing some or all of the money you’re investing, you should probably opt for a safer, more secure investment avenue.
Open a Roth IRA
If you want to grow your wealth for retirement, a Roth IRA is one of your best options. Both contributions and qualifying withdrawals (after the age of 59.5) are tax-free, which means your money can grow in an investment account for years on end without being taxed. If you can consistently contribute to your IRA, even in small amounts, it can help ensure that you have enough savings to live a happy and comfortable retirement!
Diversify Your Portfolio
Regardless of the exact type of savings or investments you choose, it’s important to diversify your portfolio. It might be tempting to dump all of your available cash into crypto for quick earnings, but this could present a major risk to your investment. Instead, spread out your funds across several different investment and savings vehicles. This way, you reduce the risk of losing, while still allowing your money to grow!