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Best Way to Invest $1000 ?

C

ChefMacDaddy

macrumors member
Original poster
Aug 14, 2011
30
0
Hi, I have $1000 USD left over and I would like to save that money for a short amount of time (8 months or so) and I was wondering what would be the best way to do so. If I put it in a bank, I would get less than 1% in interest, which is only $10 a month.

Is there a smart way I could safely invest this? I may invest/save an additional $1000 in a month or so as well.

Thanks. I would love to hear your advice or personal experience.
 
ChefMacDaddy said:
Hi, I have $1000 USD left over and I would like to save that money for a short amount of time (8 months or so) and I was wondering what would be the best way to do so. If I put it in a bank, I would get less than 1% in interest, which is only $10 a month.

Is there a smart way I could safely invest this? I may invest/save an additional $1000 in a month or so as well.

Thanks. I would love to hear your advice or personal experience.
Click to expand...

Loan $100 to ten friends at 10% interest.

But seriously (well, although you could make a bit of money doing that over and over again) idk. I'll be monitoring this thread as well for some good suggestions.
 
The old asian way of doing business:
Buy something(s) at a very low price that you can sell for a big margin.
Reinvest the profits, and repeat until you get more.
 
ChefMacDaddy said:
Hi, I have $1000 USD left over and I would like to save that money for a short amount of time (8 months or so) and I was wondering what would be the best way to do so. If I put it in a bank, I would get less than 1% in interest, which is only $10 a month.

Is there a smart way I could safely invest this? I may invest/save an additional $1000 in a month or so as well.

Thanks. I would love to hear your advice or personal experience.
Click to expand...



By the way, you get 1% APY. That's annual yield. Meaning in a year, you'd get $10.


Yeah, interest rates are very low right now.
 
The safest investment is a CD (offered at your local bank) The interest rate on those is higher than their typical savings accounts because once you put the money in the CD it becomes very difficult to get it back out until the term expires. There are usually 3,6,12 month CD's available so look into it.

If you want a higher return than what those offer, you'll have to gamble a bit with your money in the stock market (or other various non-guaranteed investments).

Key is just looking around and finding the option that makes the most sense for you.
 
ChefMacDaddy said:
Hi, I have $1000 USD left over and I would like to save that money for a short amount of time (8 months or so) and I was wondering what would be the best way to do so. If I put it in a bank, I would get less than 1% in interest, which is only $10 a month.

Is there a smart way I could safely invest this? I may invest/save an additional $1000 in a month or so as well.

Thanks. I would love to hear your advice or personal experience.
Click to expand...

The interest rate is 1% annually. So even if you compound monthly, on $1000 it's only $10.04. Less than $1/month.

If you need to have access to it in the short term, then there's not much you can do with it besides save it. Interest is only really relevant on big sums, because even with higher rates, you're making a few dollars a month. My savings account makes about $5/month in interest... not really worth worrying about.

Just put in a savings account so you don't spend it. That's about as effective as you'll get, imo.
 
actually, the bank is the worst idea, as you'll lose money compared to inflation.

gold, if the way to go, they're not making any more
 
If you have any debt, then I would suggest putting the money towards paying that off. If not then, I would just stick it in the bank if you are going to need it in 8 months.
 
Invest in Apple stocks?
I don't think you would make that much off of it.

Nothing else comes to mind.
 
wrinkster22 said:
This is the second time I have seen you post this...
Something about this and the OP's signature made me wonder.... LOL
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Good point. Catholic hookers and blow? :D

On a more serious note, chances are you could make more than 1% on AAPL over the next 8 months, but it is by no means safe or guaranteed.

That said, if you didn't need the money after 8 months, you could just let it ride, and either catch back up to your original investment (if you lost money) or continue to accumulate. Regardless of how much gold there is or isn't, Apple has a pretty bright future and is a lot more fun to track IMHO.
 
actually the bank is the worst idea, as you'll lose money compared to inflation.

8 months is too short time horizon to do anything meaningful.

also, why do you need it in 8 months?

have you maxed out your roth/401k match/403b/529b for the year?
 
invest some of that in a better signature would be my vote.

with limited funds, limited time, you really don't have many options for a safe money building play.

stocks and hope for a long shot, but you still have limited funds, and would be paying commission twice (or more) to get in and out.

cd, savings, or just save it and be happy to still have it still a few months later. best of luck.
 
ucfgrad93 said:
If you have any debt, then I would suggest putting the money towards paying that off. If not then, I would just stick it in the bank if you are going to need it in 8 months.
Click to expand...

Definitely. If you have debt, pay that off first.
 
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