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12 Ways To Make Money With $1,000

Man holding money he's made with $1,000

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You've saved up $1,000, and now you're looking to find ways to make money with your $1,000. The good news is that there are many ways to make money with money, although with all the options out there, you might be wondering which to pick.

Putting your $1,000 to good use will allow you to earn more money. While you won't turn that money into a huge lump sum overnight, it's very possible that you can grow your money substantially.

So, instead of spending your $1,000, consider how to make your money work for you.

In this article, we'll go over 11 ways that you can invest $1,000 to make more money. Some of these methods are riskier than others, so consider your risk tolerance when determining which way you'll use your $1,000.

Let's jump right in.

1. Invest in Index Funds

Risk: Medium

Reward: Medium-to-High

Investing in index funds is a great choice for most people looking to make money on the stock market. You'll indirectly own partial shares on dozens, hundreds, or even thousands of companies when you invest in an index fund. One of the best parts about this is that you can invest in an index fund with little money.

The S&P 500 has returned an average of 10.7% per year over the past 30 years. Investing in an index fund that follows the S&P 500 would give you similar returns.

For argument's sake, here is how your $1,000 would grow over several years at a 9% ROI per year.

YearBalance
0$1,000
1$1,094
2$1,197
3$1,310
4$1,433
5$1,568
10$2,459
20$6,048
30$14,875
40$36,582

Now consider your growth if you were to invest more money.

Get started with index funds by opening an account with Charles Schwab Bank and have all the research you'll need at your disposal.

Recommended For: Index fund investing is recommended for those who want a relatively hands-off approach to growing their $1,000. You can buy shares of the index or indexes that you want and not touch the money until you need it in the future.

Index fund investing Pros:

  • Low management fees
  • Outperform actively managed funds like mutual funds
  • Consistent returns

Index fund investing Cons:

  • Lack of flexibility
  • Unlikely to see big gains

2. Invest in High-Yield Dividend Stocks

Risk: Medium

Reward: Medium-to-High

Investing in high-yield dividend stocks or ETFs can be your pathway to a lifetime of passive income. With enough money invested, your dividend income could surpass what you would earn at a part-time job.

Here's an example of how investing in stocks that pay dividends can build your wealth.:

  • Assume company ABC has a stock price of $50 and pays a 4% dividend
  • You invest $1,000 by buying 20 shares (20 shares x $50 each = $1,000). At 4% dividend yield, you'll earn $40 from dividends in your first year ($50 share price x 4% x 20 shares).
  • The stock will presumably also go up in value over the year.

Now, let's look at what happens over time, assuming that the stock goes up by 6% each year.

YearAnnual DividendPrincipal IncreaseNew Balance
1$40$60$1,100
2$44$66$1,210
3$48.40$72.60$1,331
4$53.24$79.86$1,464
5$58.56$87.85$1,610.51
10$94.32$141.48$2,593.74
20$244.64$366.95$6,727.50
30$634.52$951.79$17,449.40

So what's your return after 30 years? 1,644.94%.

Over time you'll earn more money on your initial $1,000 investment, and you'll gain more shares of company ABC. Consider the same scenario if you were to add $1,000 each year on top of your initial investment. The returns would be pretty amazing. In fact, in year 30, you would have an annual dividend of $6,579.76 and your total balance would be $181,943.42.

You don't need to be an investment guru to get started in high-yield dividend stocks and ETFs. Open an account with Charles Schwab or M1 Finance to get started.

Recommended For: Dividend stock investing is great for those who want to build passive income over the long haul. What will start as a trickle to add to your spare change will turn into a stream of income giving the right amount of time.

Dividend stock investing Pros:

  • Build passive income
  • Dividend reinvestment for compounding returns
  • Beat inflation

Dividend stock investing Cons:

  • Risky to own individual stocks
  • Dividends not guaranteed
  • Requires investment research

3. Start a Blog

Risk: Low

Reward: Variable

Blogging is a popular way to make money online, though the amount of money you will earn is highly variable based on what you blog about, your monetization methods, and a slew of other factors. It's estimated that 81% of bloggers don't earn any money, and approximately 8% of bloggers earn a full-time income and support their families with their online platform.

That said, there's a lot of money that can be earned if you stick to it. With an initial $1,000 investment, you can buy hosting, one or more blogging courses, an annual subscription to a professional editing software like Grammarly, and several months of subscription to an SEO writing assistant like RankIQ. When combining courses and tools, you'll have a headstart over your competition, which will raise your likelihood of creating a profitable blog.

Bloggers earn money through writing blog posts and monetizing with ad revenue, affiliate marketing, writing sponsored content, and selling products and services.

Blogging is a long game. It's almost impossible to make a lot of money as a blogger in a short amount of time, however, those who stick with it and adapt well could see their $1,000 investment eventually turn into income that will support them indefinitely.

Check out this post to learn how to make money as a blogger.

Recommended For: Blogging is recommended for anyone who has time to start an online business and is open to learn and adapt to new things. A lot of work goes into blogging, and many fail at it. To succeed, you'll need ample time to devote to it, especially if you want your blog to be more than just a side hustle.

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Blogging Pros:

  • Low startup costs
  • High potential return for initial investment
  • Work your own schedule

Blogging Cons:

  • Most bloggers don't earn much money, if at all
  • Technical aspects can be overwhelming
  • Requires ongoing work to maintain

4. Create a Print-on-Demand Business

Risk: Low

Reward: Medium

You may consider starting a print-on-demand business with your $1,000. Print-on-Demand businesses sell t-shirts, sweaters, sweatpants, and similar clothing with custom designs. But you aren't limited to just clothes. A successful print-on-demand store can sell shower curtains, pillows, comforter covers, towels, paintings, handbags, and much more.

The money you invest can be used, in part, to pay the monthly subscription for a premium Canva account, which is where you'll create your Print-on-Demand designs. You can also use part of your money for a Shopify subscription, an excellent platform for hosting your store.

Lastly, you'll need some money in the bank for processing orders. Whenever someone buys a product from you, your debit or credit card will be charged for printing and shipping costs, and then you'll later be credited the amount of money that you sell the product for.

You'll need a place to fulfill your orders. Printify is a great option. Using Printify, you can upload your custom designs, choose your supplier, create prices, and manage orders. In addition, Printify will print and ship your orders once someone orders from your store.

The money you can make with a print-on-demand store is highly variable depending on how much traffic you get, how much you spend on advertisements, and how popular your designs are.

At a fundamental level, let's assume it costs you $10 for a t-shirt, plus $4 shipping. If you sell that t-shirt for $25, you will earn $11 profit per sale, minus transaction fees.

Print-on-Demand stores often make money with volume versus high margins, so make sure you have a good marketing strategy to get eyes on your store.

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Here's our guide to making money with print-on-demand.

Recommended For: A print-on-demand business works best for someone who has some marketing and sales knowledge. You can learn this as you go. If you're not a great designer, you can hire people on Fiverr to make designs for you.

Print-on-Demand Pros:

  • Relatively easy to setup
  • No inventory
  • Build your own brand

Print-on-Demand Cons:

  • Low profit margins
  • You rely entirely on your printing company
  • Highly competitive in some niches

5. Start a Dropshipping Business

Risk: Low

Reward: Medium

With a dropshipping business, you can sell products to your customers directly from the manufacturer. That is, your dropshipping website is the middleman between the manufacturer and the purchaser.

When someone orders something from your store, behind the scenes, you order the product from the manufacturer, and they ship it for you, allowing you to create a store and not need any inventory. A popular website for finding products to dropship is AliExpress.com. There you will find loads of items to sell.

Similar to print-on-demand discussed above, you'll likely make a small amount of money per item, and instead, you'll need to focus on volume versus margins on individual items.

You can use a website like Shopify to set up a dropshipping store. With your initial $1,000 investment, you can create your store, buy some of your products to test, and make video ads using the products you bought. This can lead to a passive income stream should your store be successful.

Recommended For: A dropshipping business can be run mostly passively once it's set up. That said, to start a dropshipping business requires an eye for what you can sell for a profit and how to get eyes on your store. Having a basic sense of sales and marketing will help you succeed, as well as skill in writing good product descriptions and doing search engine optimization or social media outreach.

Dropshipping Business Pros:

  • No inventory
  • No need for a physical location
  • Earn passive income once your store is set up.

Dropshipping Business Cons:

  • Highly competitive due to low cost to startup
  • Long shipping times
  • Often an undercut battle with competitors, hurting profits

6. Fund a Side Hustle

Risk: Variable

Reward: Variable

There are dozens of side hustles you can start with a $1,000 investment. For example, you could start a year-round yardwork business by investing in a lawnmower, rakes, and shovels, and then start earning money in your local neighborhood. You could become a virtual assistant and invest the money in a website and professional photo. These are two basic side hustle examples of what you can use $1,000 on to make more money.

Your risk versus reward will vary as some side hustles are more profitable than others, and some have higher initial expenses than others.

The best part about a side hustle is that you can set your own hours and work as much or as little as you want. Your hard work will translate to more money in your bank account.

Recommended For: Side hustles are suitable for anyone as there are so many different side hustles to choose from. Here's an article with over 40 side hustle ideas to get you started.

Earn More Money to Reach Your Financial Goals

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Side hustle Pros:

  • Make your own schedule
  • Have a wide variety of ways to earn money
  • Can work around your full-time job to increase total monthly income

Side hustle Cons:

  • May not make a lot of money, depending on the side hustle
  • Many options, and they often take time to build up a steady flow of income

7. Make Money with Peer-to-Peer Lending

Risk: Medium

Reward: Medium

Peer-to-Peer (P2P) lending is a great way to earn some extra income. On a platform like Prosper, you can lend money out to borrowers and get paid back principal and interest each month for the lifetime of the loan.

The way it works is pretty straightforward. First, you'll be given a list of all available notes on the platform and a profile of the borrower, which includes basic credit information, employment status, and other relevant details that will help you decide if the borrower is a good fit for your risk levels. You'll also see how much the borrower is asking for, what they want to use it for, and what the interest rate is on the note.

You can lend as little as $25 per note, as notes are funded through dozens, if not hundreds of lenders, all lending smaller amounts of money to add up to the total loan amount. That is, you and 999 other people may each lend $25 to someone for a total of a $25,000 loan.

To minimize your risk, it makes sense to lend a small amount of money to a large number of borrowers. For example, if you have $1,000, you could lend $25 each to 40 borrowers. That way, if one borrower defaults on their loan, the principal you lose out on will be made up with from interest from your other 39 loans.

The more money you have available, the more notes you can fund at a time, meaning you'll have less overall risk if someone defaults.

P2P lending is still relatively young, so there isn't a ton of historical data as to how good returns are over the long haul. However, some platforms estimate that you'll average a 4-6% return, though your lending strategy will greatly dictate your actual return.

Recommended For: P2P lending is an alternative investing strategy and should be researched thoroughly before going in on. Since putting all of your eggs in one basket is inherently risky, P2P lending makes a great investment choice for those who are already heavily invested in the stock market and want to diversify or who want to avoid the volatility of the stock market while still seeing a fair return on their money.

Peer-to-Peer Lending Pros

  • Can considerably spread your money out to protect your capital
  • Choose who to lend to and how much
  • Solid returns compared to other alternative investments

Peer-to-Peer Lending Cons

  • Interest income is taxable
  • You can lose your investment if a borrower defaults

8. Open a Fundrise Account

Risk: Medium

Reward: Medium-to-High

Fundrise.com is a real estate crowdsourcing website where you can invest as little as $500 into eREITs, where you'll earn appreciation and rent payments in the form of quarterly dividends.

A $1,000 investment is enough to open a Basic tier account.

Fundrise takes care of everything for you. Depending on how much you invest, you can select different strategies, and Fundrise will allocate your money across various real estate projects. Some of these include single-family rental homes, apartment complexes, and commercial buildings.

Fundrise assesses management fees that add up to 1% per year. One way to get around paying your management fees is to share Fundrise with people you know. Signing someone up will have your next 180 days of fees waived, as well as waive the first 90 days of fees of the person who signs up with your link.

A drawback to Fundrise is that Fundrise is a long-term investment platform. Your money will be illiquid for 5 years, and requesting your money back before then will cause you to be faced with penalties. Investing in Fundrise is ideal for those who don't mind tying up their money for 5 or more years. With that in mind, there is a substantial growth opportunity for your money as well as passive income from the rent you collect as dividends.

Fundrise Pros

  • Invest in real estate for as little as $500
  • IRAs available
  • Easy-to-use website and platform

Fundrise Cons

  • Money is illiquid
  • Additional fees depending on your investment

9. Open a Roth IRA

Risk: Low-to-Medium

Reward: Medium-to-High

A Roth IRA can be used in different ways to make money for retirement. First, you'll contribute after-tax dollars into your Roth IRA. From there, you can invest in stocks, bonds, and funds on the stock market. Because of how a Roth IRA is structured, your money will grow tax-free. Then, when you turn 59½ years of age, you'll be able to start withdrawing money from your Roth IRA and won't pay taxes on your gains. This makes Roth IRAs a great way to make money throughout your life to use when you're older.

In 2021, the maximum you can contribute to a Roth IRA is $6,000 per year, unless you're age 50 or older, in which case you can contribute $7,000 per year.

The more money that you fund your Roth IRA with, the more tax-free money you'll potentially have when you're older.

As an example, if you're 25 years old and you invest $6,000 per year into your Roth IRA until you're 45 years old, and you earn an average of 8% ROI per year, your account will be valued at just over $1 million when you turn age 60, even though you only contributed $120,000 over twenty years.

You can open a Roth IRA at most investment banks. Charles Schwab Bank is a great bank to get started with a Roth IRA.

Roth IRA Pros:

  • Your money grows tax-free
  • You can withdraw what you put in, penalty-free
  • You won't be required to take money out of your account when you reach 72, the age where a traditional IRA requires distributions

Roth IRA Cons:

  • The maximum annual contribution is low
  • There are income limits
  • You have to set it up yourself

10. Start a YouTube Channel

Risk: Low

Reward: Variable

If you're considering starting a YouTube channel, there are many things you need to consider before diving in. For example, what content will the channel be about? How often should videos be uploaded? Having a set schedule will help attract viewers as they'll know to check out your channel right as you launch a new video.

You can monetize your YouTube channel by placing ads on your videos. Ad revenue is shared between YouTube and the video creator, but you can also monetize by using affiliate marketing in your videos. By signing up for affiliate programs, you can make a profit just by referring viewers to a website; similar to Amazon Associates.

YouTube is competitive, however, and to make a name for yourself, you'll need to have interesting content. Try out several different kinds of videos, including tutorials, vlogs, product reviews, and more.

If your channel is successful, you can create a YouTube network of channels that have the same niche by collaborating with similar channels in your area. These partnerships will be mutually beneficial as they'll help each other grow and attract more viewers.

YouTube Channel Pros:

  • Low investment ($1,000 can buy you a camera, lighting, and professional microphone)
  • Easy set up (minimal startup cost)
  • Vast potential for success with the right idea

YouTube Channel Cons:

  • You'll need to create videos, which takes time and effort
  • High fail rate
  • YouTube is highly competitive

11. Put Money in a Savings Account

Risk: Minimal

Reward: Low

Placing your $1,000 in your savings account won't earn you a lot of money, but your money will grow safely. A high-yield savings account will allow you to earn around 0.5%, in August 2021, on your money. If you deposit $1,000 into a savings account at 0.5%, this will add $5 to your account after one year.

While money earned in a savings account isn't much, a savings account is the best place for an emergency fund. For example, if your car breaks down and needs $1,000 of work or you have to go to the emergency room, you will be able to afford it by pulling money from your savings account versus going into credit card debt.

It's recommended to have three to six months' worth of living expenses in your emergency fund placed in a high-yield account. This way, if something happens (like the aforementioned car breaking down), you don't have to take on additional debt.

CIT Bank is an excellent choice for opening a savings account, whether for an emergency fund, a vacation fund, or for any other reason.

Savings Account Pros:

  • Safety: Your money is insured up to $250,000 by the FDIC.
  • Liquidity: You are free to access your funds at any time without penalty or charge.
  • No risk of capital loss

Savings Account Cons:

  • Earnings: Interest rates are very low, often around 0.5%.

12. Invest in a Course About Making Money

Investing in a course about making money is a great way to learn all the skills and knowledge you need to make money. There are hundreds of courses on online education sites like Udemy and Skillshare, and the prices range from around $5 to $500. Some courses are short and to the point, while others are more in-depth.

What's most important is that you enjoy the course and take away practical skills from it. Then, using these practical skills, you can find ways to make money.

Here are some professions you can learn from online courses that will help you make money:

  • Freelance Writing
  • Selling Digital Products Online
  • Starting an Online Business
  • Bookkeeping

These are just four professions you can learn about to help you make money with $1,000.

There are so many courses to choose from so make sure you read the course summary and reviews to make sure it aligns with your interests.

Skillshare and Udemy are great platforms to find a course that will teach you how to make money.

Investing in a money-making course Pros:

  • Learn practical skills to make money
  • Gain specific knowledge of how you can start earning money in a particular area
  • Get one-on-one interaction with an expert who can help answer all your questions and address your concerns

Investing in a money-making course Cons:

  • There are hundreds of online courses about making money, so it might be hard to choose one
  • You may have to pay money for the course and then decide it's not quite what you were looking for

Where to Get $1,000 to Invest

Here are some ways to quickly earn $1,000 so that you can use it to earn more money.

  • Get a temporary part-time job or side hustle: A part-time job or side hustle is a great way to earn $1,000 quickly. However, if you already have a full-time job, it might be hard to find the time required to start another job or side hustle. Check out our article on 40+ side hustle ideas.
  • Sell your stuff: If you have stuff that you don't use, sell it by listing it on Craigslist or eBay. You can also try selling your old books on Amazon Marketplace. This may be a quick way to raise $1,000.
  • Ask for an advance on your paycheck, or, if you have paid-time-off, ask for the day off work and find a way to make money that day (e.g., babysitting)
  • Earn money by taking online surveys, completing tasks, watching videos, etc.: Check out these survey sites like Swagbucks (earn $5 for signing up!) and Survey Junkie to get started making money in your free time.
  • Offer services like tutoring or housecleaning – you can post these opportunities on sites like TaskRabbit

Wrapping It Up

In this article, we discussed several ways that you can earn money with a $1,000 investment and how to save up $1,000 to get started. Keep these strategies in mind as you start earning more so that your earnings can make you more money over time.

In what ways will you invest $1,000 to make more money?

Earn More Money to Reach Your Financial Goals

Download our guide with over 50 ways you can make more money starting today.

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