When building wealth, you may need to spend some money upfront in order to grow it further in the future. You may need money to make money, but the good news is that you don't have to wait until you have thousands of dollars saved up, you can start with just $1,000. Everyone has a different starting point when it comes to building wealth, and you need to work with what you have.
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GOBankingRates asked financial advisors about the best $1,000 to spend to make more money. Let's see how this investment and use of money can increase your wealth.
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Best $1,000 ever spent
“The best $1,000 I ever spent was to further my own financial education,” says Scott Sturgeon, founder and senior wealth advisor at Olead Wealth Partners. said. “Specifically, for me in my role as an advisor, it probably cost him more than $1,000 to study and take the CFP certification exam, but it was still well worth it.”
Ms Sturgeon stressed the importance of investing in education to build wealth. This qualification helped him learn about money management and led to his current career.
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The importance of this investment
“Being a CFP professional provides you with a thorough knowledge of a wide range of financial planning topics, the ability to provide your clients with services and advice that go far beyond simply investing their money, and the ability to manage your own wealth. It has given me the confidence and ability to start doing financial planning and I think it will be solid in 2021,” Ms Sturgeon said.
This investment was necessary because without the proper qualifications he would not have been able to get into his current business. By taking courses and increasing your knowledge, you can discover new possibilities that you never thought existed.
Ms Sturgeon added: “The combination of these three points has been extremely rewarding both mentally and professionally, but has also benefited me personally.”
How spending money wisely increases wealth
To increase your wealth, you need to spend money to accelerate the process. Here are some ways to increase your wealth by spending your money wisely.
invest in education
“Investing $1,000 in yourself, your education, or developing the unique value you can offer will almost always yield greater returns than other types of investments and can build wealth in the long run. ” said Ms Sturgeon.
While there are many other investments to consider, the value of investing in knowledge cannot be ignored. By learning more, you can earn more and increase your earning potential. If you want to save more money, you have to start by increasing your income. You can increase your income by expanding your knowledge.
That one course you take can build momentum towards a new career and a completely different philosophy towards money. If you're not satisfied with your current role, you can always consider the educational opportunities available.
Save when you can
“The biggest thing about wealth building is that it's not what you earn, but what you keep that ultimately determines your ability to grow your savings,” Sturgeon said.
Once you invest in your knowledge and earn more money, you need to get better at saving and investing in the right assets to ensure your money grows. This is one of the big challenges in personal finance. Because we don't always know when to save and when to spend.
Pay attention to where you spend your time
“Being smart about what you spend your money on and making sure it's invested in building equity is probably the most common theme among wealthy people,” Sturgeon added.
If you're serious about building wealth, you'll want to spend your money on assets that will help you make more money in the future. As your income increases, you may want to spend money on treating yourself. However, you don't want short-term concerns to prevent you from achieving your savings goals.
How you can invest $1,000 now
Sturgeon shared a number of ideas for building wealth once you've accumulated some savings. Some options are:
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stock: You can grow your money in the stock market by investing in a diversified portfolio based on your risk tolerance.
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real estate: You can build wealth through real estate by investing in rental properties, REITs, or crowdfunded real estate projects.
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Build your business: If you have a passion for entrepreneurship, you can invest your money in building a business.
Ms Sturgeon emphasized the importance of investing to increase the value of assets. How you invest your money depends on your personal experience and how much risk you are willing to take.
If you're planning to invest that $1,000 in professional development, you have a few options. Here are a few:
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Upgrade your education: You can spend $1,000 on certifications, courses, and other education to increase your value to employers or launch your own business.
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Attend events in your field. You can expand your professional circle and create new opportunities for yourself by spending money on attending networking events.
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Pay for professional coaching: If you're feeling stuck, you may need some structure or direction. In this case, it may be beneficial to work with a professional coach to help determine your next steps.
Other $1,000 investments worth considering
Sturgeon isn't the only financial expert who was able to build wealth with a $1,000 investment. GOBankingRates spoke with other financial advisors who shared investments they were proud of.
spend money on health
“I think the best $1,000 I ever spent was on yoga,” said Margherita Chen, CFP, an expert contributor to Annuity.org. “It all started last May when I took advantage of a $29 two-week trial at a local woman-owned yoga studio. After experiencing the benefits first-hand, I became a member in June 2023. Over the course of one year, I invested $899 in yoga classes and found immense value in each session.”
“For me, this investment isn't just a matter of expenses; it's a commitment to my overall health,” she said. “Health is wealth and yoga is an invaluable investment in my well-being.”
While improving your financial situation, you also want to ensure your physical health so that you can enjoy wealth in the future. Investing in your health is rarely discussed in personal finance, even though it's so important to your quality of life.
children's education
“The moment I got my daughter's Social Security number, I invested $1,000 in her 529 account,” says Krishi Cole, CFP, founder of Penny Finance. “That $1,000 became an instant tax deduction in Massachusetts.”
She explained: “That $1,000 for her increases to her $5,000 tax-free to the college. If I contribute $1,000 a year for her, she'll have $60,000 left in her college savings account.” It will be.”
Sometimes building wealth means leaving a legacy and helping your family. In this case, Cole's daughter is expected to be able to attend college without incurring large amounts of debt.
lastly
“Spend your money on things that make you money,” Ms Sturgeon concluded.
If you have $1,000 to invest, you can use this money to find ways to expand your knowledge and start building wealth. You never know when a $1,000 investment can change your entire life.
GOBankingRates Details
This article originally appeared on GOBankingRates.com: I'm a Financial Advisor: How the Best $1,000 I Ever Spent Made Me Richer
