Post Menu and Details.
- 1. Options Trading
- 2. Foreign Exchange Futures
- 3. Invest in Private Companies
- 4. Invest in Yourself
- How to Get Rich with $1,000
Reading time: ~2 minutes
As the old saying goes, it takes money to make money. Many folks who are looking to get rich realize that, and thus start out trying to invest whatever sums of money that they have in hopes of striking it rich.
If you’re in that category and are looking to find your fortune, then you’re in the right place. In this article, we’re going to take a look at how to get rich by investing just $1,000 — or less!
1. Options Trading
The first wealth-building strategy that you can consider with less than $1,000 is options trading. Options trading is certainly one of the riskier investment strategies out there, but it can produce incredible returns on small amounts of invested capital.
An option is a contract that gives you the opportunity to buy (a call) or sell (a put) a hundred shares of a particular stock. Because the prices of an option contract aren’t tied just to the stock price itself (intrinsic value), but also to what the market thinks will happen to the stock (extrinsic value), the price volatility of an options contract is immense compared to the underlying stock’s.
Consequently, huge shifts in options contract prices can result in you making a lot of money fast. And once you realize your profits by selling the contract you bought, you can reinvest them into another contract!
2. Foreign Exchange Futures
Another way to make a lot of money fast with little capital is to leverage the foreign exchange (forex) market. Foreign exchange is all about using the small changes in currency values to your advantage.
A forex future works much the same way as an options contract. The principal difference is that instead of buying contracts on a stock, you buy contracts on a particular currency. If you have a good idea of whether a currency is going to go up or down, you can create outsized gains with forex futures.
3. Invest in Private Companies
Another great way to get rich quick is to invest in a private company. Because private companies are typically much smaller than public companies, the same amount of money can give you much more equity in the company. And then, if the company grows bigger and bigger and thus more and more valuable, the equity you have in the company compounds into a huge sum.
There are a few factors to consider before investing in private companies through an investment banker.
4. Invest in Yourself
The last way that you can get rich with $1,000 is to invest it in yourself. Be it an additional education course, better access to food that will improve your health, or anything else, investing in yourself is a great way to improve your own performance and mental aptitude, translating into higher earnings.
How to Get Rich with $1,000
There you have it. Now that you know the science of getting rich with $1,000, you’re all ready to embark on your journey of trying to get rich with only a grand’s worth of capital!
For more financial articles, check out the rest of the website!