7 Smartest Ways to Invest or Spend £1000
If you have some money and have no idea what to do with it, this article gives you some ideas on how you can either invest or spend £1000 or $1000.
The first thing I will do is to remove 10% of the $1000, which is £100. The reason for this is because of my generosity mind-set. I believe whatever I have is not only for me but for everyone.
There are always going to be people who cannot help themselves because of reasons beyond their control. So I will give the £100 to church to administer it or I can just give it to one of the charities I support.
After deducting 10% to give as a charity. I’m now left with £900.
7 Smartest Ways to Invest or Spend £1000
Here are some of the ways to spend the remaining £900 (in my case). Perhaps this will give you some ideas on how to invest your money wisely or how to spend your money.
1. Index fund investing
When it comes to investing I usually do it for the long run and I don’t like individual stocks because it’s too risky for me. Especially if you are a beginner in the world of investing in the stock and shares.
It makes sense for you to start with the safe way of index funds as this will help you to invest in a low-risk way while you are learning.
You might consider investing in the Vanguard platform. Vanguard has a lot of funds that are performing well. And as a beginner, you might consider one of Vanguard’s Life-Strategy Fund.
Vanguard is one of the most trusted investment platforms because of its history and good reputation. Vanguard’s platform is user friendly and to crown it all, they have one of the lowest fees in the market.
2. High yield savings account
Traditional savings accounts no longer pay good interest for savers. Many savers are frustrated because of the lowest interest banks pay for savers.
If you shop around you might still be able to find some savings accounts that pay good interest on savings account. These are accounts that have up to 5% interest.
The best way to find such deals is to try websites like Which? for up to date information regarding accounts that can pay good interest on your savings.
3. Invest in yourself
Personal development is something that I take seriously. I usually do not depend on my employer alone for education that relates to my career.
Every year I set aside money that I use for my self educations. Over the years I have acquired certifications like PRINCE2, ITIL, SAS and some other ones. The funding for all these came from my personal money and not from any of my present or previous employers.
As an entrepreneur, I have also spent money on training programs that helped me in my business. This is because I believe improving your skills is very important.
I am conscious of the importance of learning new skills and like to get my brain working in the right direction. I like adding to my skills set.
The £900 could be useful for learning something new as part of my personal development.
4. Pay off your mortgage early
If you have a mortgage, you can use it as over-payment on your home loan. If you are like me who will like to pay a mortgage early.
You might consider this money as over-payment on your mortgage. A 25years mortgage doesn’t have to be paid over 25years. You can decide to pay it off early if it’s allowed in your terms and conditions.
Don’t get me wrong, this money might be too small but surely it can be part of your over-payment and it will be helping a bit to reduce your home loan.
5. Pay off Consumer debt
If you are paying interests on consumer debt you are making the bank or lender rich and you are getting poorer. If you have a credit card or loan you can use this money to pay all or part of it back.
6. Start a business
If you already have a business idea, you can use the money to implement it.
For example, if you were thinking about an online-based business that will require a website set up. You could use part of the money for buying a domain, hosting and set up the website.
It’s important though to make sure you’ve done proper research and also approach with due diligence.
Or perhaps you already have a business like me. I can use the money to buy stocks that I can resell on Amazon or eBay for profit.
7. Enjoy life
Life is not just all about investment and savings. You also need to enjoy life. In fact, I like to spend my money on new experiences.
The time you spend with your family and loved ones will also be in your memories. Experiences have a huge impact on happiness. If you are not struggling financially, you could treat yourself to a nice holiday to relax.
Look for a nice place where the whole of your household will enjoy good family time. Changing the environment can also unlock your creativity.