How to Invest Your First $1,000

Congratulations! You’ve decided to step up to the game and invest your first $1,000. It’s a smart move, but we get it, you might still be a bit uneasy about where the heck to get started. If this is stopping you from taking the plunge, then perhaps the following tips will guide you into settling your first grand. Keep in mind you’ve already taken a huge step just by getting started.

Find help

Don’t be afraid to reach out to the experts. This is your first dive into investing so you want to be sure it’s done smartly. First off, you need an online investment advisor such as Finhabits that can help you open an account easily and select a diversified portfolio. Now, be sure it’s done with an online advisor and not an online discount broker. Online brokers will only allow you to open an account, but it’s up to you to pick your first investments. That can be quite overwhelming when you’re only starting out.

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Select a smart portfolio

When selecting a service, it’s important to understand all the fees you’ll be paying. For example, avoid products or any service that has opening or deposit fees. By keeping your costs low, you’ll have better chances of growing your money. Finhabits uses low-cost index funds by reputable firms such as Vanguard or Blackrock. To increase your chances of success you need to diversify your investments, or as we like to say, spread your eggs in different baskets. If this sounds too confusing or you have any concerns, then have no fear as Finhabits’ fully diversified portfolios include equities and bonds. We’re here to do the hard work and simplify your life.

Set up a realistic plan

You know that old saying, ‘We must learn to walk before we can run?’ Well, it also applies to investing. This is a skill you must slowly dip into before you move onto anything more complex. We suggest that you invest your first $1,000 over the course of at least one year. This way you’ll only be contributing $20 a week, which is an easy amount, to begin with since it’s easy to digest. You can always increase this amount as you feel more comfortable with your abilities––before you know it you’ll be a pro.

Learn from the process

Your first $1,000 are not going to make you a millionaire but they will certainly help you learn a great deal about investing. So stop going back and forth and get started today. With the guidance of an online advisor such as Finhabits, a smart portfolio, and recurring auto deposits, you’ve pretty much got this!


Disclaimer: This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The information and opinions contained in this post are derived from proprietary and nonproprietary sources deemed by Finhabits to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Finhabits, its officers, employees or agents. This post may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this post is at the sole discretion of the reader.
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