With only a thousand dollars, and a dream of becoming a millionaire in future may look a dream that is achievable after a thousand years. However, what to do with a thousand dollars to improve my finances is to invest. There are many available chances of investing but some have limitations of the lowest level of finances needed to invest. This is because the cost of managing small or bigger investments is the same and many companies will opt to increase the gains while lowering the cost of operation. However, not all hope is lost as there are other investment plans that are developed to cater for a thousand dollars person.
The first activity is to eliminate the chance of making loss and hence some investments like buying individual stocks are not appropriate. Stock requires diversification of risk by investing in different categories in order to offset the loss of one stock with the gain from others and hence eliminate the effects of loss. But since a thousand dollar will not be enough to buy different stocks the best option is to invest in mutual funds. Mutual funds are sold and bought through companies which deal with their trading. Companies which directly manage these funds do not charge any transaction fees.
The next step is to ensure I do not involve a discount broker as they would charge a small transaction fee or full service broker as they charge full commissions. Companies which deal mutual trading allow automatic investments and withdrawals to take place but they require opening an account with them. It is important to seek more information before investing as many types’ of mutual funds exists.