How to invest 1000 euros in a smart way?
It is always exciting to know that we have a little extra money in our account, whatever the amount, it is an amount in our favor that we can freely dispose of and we must be vigilant if we want to take advantage of it. The decisions we make in this regard will affect the evolution of our money and it will depend on whether it bears fruit or not in the future..
One of the best decisions we can make in relation to our money is to INVEST IT!, because any investment well made will mean a beneficial increase for our capital. The problem arises when we ask ourselves How can we make an investment intelligently? What should we invest in? What factors should we take into account to know if it is a good investment? Among other doubts. That’s why today, we will talk more about this topic to help you make good decisions.
How to invest 1000 euros wisely?
We will start by imagining that we have 1000 euros, that we have saved or that we have won. This amount is already part of an interesting sum to make a good investment, However, probably for financial intermediaries who only work with very large sums of money, 1000 euros is not so attractive to be able to obtain a representative commission.
However, the result of investing them well, if it can be very significant for you.
Next, we mention some options that you can evaluate and later, I will tell you what factors to consider to decide the option that best suits your profile.
1. Crowdfunding:
Crowdfunding is an alternative investment method that allows individuals, whether or not they are professionals in this area, to invest in companies that have great growth potential and to be able to make this investment in a transparent way, through a technological platform. At this time, there are various platforms where we can find various options and invest in the one that attracts us the most. Crowdfunding is also known as participatory funding, precisely because at the same time there are other people from many parts of the world who are also investing in that.
Some benefits of orienting our investments to crowdfunding are related to being able to take control of our money and being ourselves the ones who decide where to invest it, this also allows us to diversify our risk in different alternatives and not just one; On the other hand, another benefit is related to being able to be fully informed and thus guarantee the success of the investment, for example, accessing the company’s history, knowing who is leading the project or the company and being part of this growth.
If you want to know more about this modality have a look to our article What is crowdfunding?.
2. Cryptocurrencies:
This is a great alternative that in recent years has generated great reception among investors thanks to its good rates of return. Cryptocurrency is a digital, not physical, currency that uses cryptography to manage transactions and make them more secure, as well as to create new currencies. Cryptocurrencies are becoming a means of payment. acceptable worldwide and is a global investment opportunity available to anyone anywhere in the world. In fact, currently 3% of people in the world are trading directly with cryptocurrencies and it is a number that is progressively increasing.
The value of cryptocurrencies is increasing more and more because in addition to being able to be transacted many times, it works faster than with a traditional currency from a bank. In addition, cryptocurrencies such as Bitcoin have a limited supply and the lower the amount of an asset, the more valuable it becomes.
Do not overlook this alternative and take the initiative to manage your money efficiently. Remember that even our Bitsa card can be recharged with cryptocurrencies.
3. In a business project:
Many times we have innovative ideas for products or services that we could start offering to generate our own business. However, there are few opportunities in which we dedicate time to be able to carry them out. So, if you have always had a business idea in mind that you have already been analyzing and consider profitable, investing 1000 euros in this option could be the first step to start transforming this idea into reality..
If you still have nothing in mind, you can get inspired with these 3 innovative business ideas who have triumphed in the market even though no one trusted them.
What factors to consider to decide the best investment option?
Since we are motivated to make an investment, it will be important to pause to identify some points that allow us to choose the best investment option for each of us:
The first point to take into account is related to our profile, This means being able to identify what are those characteristics that describe us, for example, our age, lifestyle, family that depends on us, job stability, among others.
In addition to this, in another important point, we will evaluate our risk profile, which consists of determining how sensitive we are to the risk of our investments, remember that the higher the risk, the higher the return, and therefore, the lower the risk, the lower our return will also be, so it will be essential to find a midpoint where we feel confident about the risk we are assuming and that this allows us to achieve a positive and satisfactory return in relation to our expectations.
Finally Another factor to consider when choosing a suitable investment for us will be to evaluate the time in which we want to obtain these benefits, In other words, what is our objective in terms of time with the investment we are making. In other words, be clear if we are looking for results in the short, medium or long term.
In conclusion, we remind you that investing intelligently depends on ourselves, encouraging us to investigate a little more about the alternatives that exist, take that step that can lead us to obtain good profits and allow us to make larger investments in the future. Keeping money under the mattress will never be a profitable alternative and on the contrary, it could be harmful, since over time inflation could reduce its value significantly. So now that you’re more informed, go ahead!