HOW TO INVEST £1000 | 9 BEST Ways To Invest Your Money | UK

congratulations you've got a thousand pounds saved so what should you do next so don't going to share with you nine of the best ideas for how you can invest thousand pounds so they can work for you and help you achieve some of your future goals I know exactly how hard it is to save a thousand pounds for me it took years literally years the thing is though once you've got a thousand pounds saved most of us gets so protective about it we'll leave that money in our bank account and the worst thing that happens is that money gets eaten up by inflation were still we could get involved in some internet scam and that money disappears so how should you invest your money is such that that when it actually does the work for you and improves your life what we do on this channel is to give the best insights best ideas so that you can create a life of financial joy will give you the insights so you can work towards a life of financial independence let's dive straight in into these nine best ideas for how you can invest a thousand pounds none of the one would be to invest in yourself you're by far the most important asset that you have in your life situation so by investing in yourself I mean you should focus on your personal development so whether it be doing some specialist courses to kind of move yourself forward in your career or whether it be to just do some external learning around languages or things that we essentially add value to you to help you become more productive and more creative more valuable so that you're able to essentially create more make more money over time see a thousand-pound get goes a very long way towards helping you do that so that could be into such things as buying books for example so we allocate a proportion of our monthly income towards buying books and reading for me personally has been the most life transforming hobby I've ever kind of taken on in fact I'd be knowing my life today without the many books I've read on the Jacek investing in yourself is by far the best way you can invest a thousand pounds none of its it would be to invest in a coach now the industry around coaching is so many people out there who are coaches and it's really for good reason because what the coach does for you is that a coach does two things so the first is though a coach helps you get to where you want to get to a lot quicker so you're not spending a lot of time you know making miss fades which has often costly and demotivate if you find the right page they can really give you that massive boost and give you the on so you need so the problem you're trying to solve it can help you get them stuck very very quickly the second reason a case is really important is that the coach is great for building relationships those people have been on a journey of self-development themselves if you know someone who is amazing at a particular thing they might be the right person to invest a thousand pounds in or up to a thousand pounds in whatever it is that they're charging because you know you not only get to solve your problem but you actually also get the relationship which might even be a lifetime relationship who knows and that might open lots and lots of doors for you then on the money number three will be to invest in index funds in the stock market so index funds or ETFs it's essentially an in Jeff Accenture stands for an exchange-traded fund index funds and ETFs are a low-cost way to gain access to the stock market that differs very differently to investing in an individual company so the difference there is is that the index fund or ETF helps you to reduce risk massively because rather than putting all your eggs in one basket you're investing across a broad range of companies so typically my recommendation will be to invest in an index fund that tracks of broad index and index essentially is a list of companies so when you hear things like the S&P 500 it's a list of the 500 largest companies in the American equities market and you can have things such as the footsie or Share Index okay which is such an important list of companies whether it's the largest at 50 100 or the 30 to 50 and smaller company so that the footsie All Share Index includes a broad range of competition so we invest in an index fund that tracks that particular index to get to invest it in a piece in order these companies and the best part is you don't need a ton of money to actually do this you can try by investing a hundred pounds 400 500 pounds even up to a thousand pounds and can do it gradually just to make sure you learn as part of the process and you're kind of observing to see how how things pan out so but the good thing is is because you're investing across a broad range of companies if one company doesn't do very well a bunch of others will would do well and over time the research shows that you're guaranteed to generate a very good return usually the markets return typically in the range between 5% and 8% on average per annum that's kind of what the research is shown over the last 80s 100 years next would be to invest in dividend paying stocks now I started investing by investing in individual companies in fact I still own individual company at the moment companies such as Amazon and Apple companies that were all kind of used to but I went into them years ago and that's kind of worked out for me but what's important is that haven't worked out at all and I just don't have mentioned the names because those companies might eventually - no in fact I just mentioned what London is Tesla as a at the moment doesn't look like it's doing very well but it might actually perform amazing and one in the future who knows but the risk there with investing in individual companies that though you might be doing some of them to generate some dividends if those companies do pay dividends the risk there is that you're putting your eggs really into this one company if they don't perform its high risk and you possibly risk losing your money so the keys that focus on the new chip companies so really large companies they tend to have a lot less volatility and you know because they're so big in terms of their market capitalization of really really large so you tend to find the such companies stand the test of time and so blue chip companies that pay a dividend are is there's definitely an option for investing a thousand pounds number five would be to invest in peer-to-peer lending now peer-to-peer lending is interesting this has been growing quite rapidly in the last decade and what's interesting about it is that we invest in p2p peer-to-peer you're essentially lending money to four projects - it's all company autumn business and what they tend to do with that money is they go out there and do things like property investing and so it's actually what you have that thing you're investing in is alone with fixed terms that generates you some form of an interest over time what's unique about it's been lending is that it sits between the savings you have your bank in terms of risk and investing in individual companies such as investing for dividends in a specific company so not as risk is investing in an individual company but it's not as non risky is going to leave in money in the bank account so at least you're getting some form or it's unlikely to be lending to kind of compensate for things such as inflation we just eat away at your money if you just sits in a bank account read nothing so companies such as rates set up for example in the UK the house-proud in the UK so per these companies which you can kind of see in the links below even have their platforms that give you access to these opportunities to generate returns in some cases up to 10% per annum which is just fantastic we think about it the next way to invest a thousand pounds is to invest in a pension so a private pension in the UK usually referred to as a sip SI PP which stands for a self investing pension plan is a brilliant way to invest your money because usually when you put your money into the pension such as private pension it's a tax efficient environment so what happens is in the UK anyway is where you put your money in if you're a basic rate tax payer the government gives you back the tax that you've paid before you generated that net income that you paid into your pension it's imagine you've got money into your bank account from your salary goes into your bank account and then you say okay I'm gonna put some money into my private pension into my SIPP the minute you do that the government gives you back that the tax that you suffered so for example where thousand pounds in within a month or so you should get 250 pounds back into into your account you suddenly gone from a thousand to one thousand two hundred and fifty so the real cost of investing that money purse and that money and really is 750 pounds so you're ahead already if you're higher it taxpayer in the UK you can also claim and another 250 so you go from putting a thousand pounds in to getting end up with 1500 pounds and this is before you view an investor that money within your pension environment and once you invest that money to returns that you generate are again tax-free okay the next way to invest a thousand pounds is to invest in a business or a side hustle I love state hustles because it completely changed my life so the fact that you're watching these videos on YouTube or whatever platform you're on it's a good example of how a side hustle can kind of work out so we start on humble penny with less than ten pounds of investment by buying a domain name and paying for some hosting and it's just completely completely blowing up over twine it's taken a lot of work dough and it's a make no mistake and lots of work goes in but the thing is a capital that was required to I should get going to in order to create something that generates an income over time was very little so businesses and side hustles an amazing way for you to invest a thousand pounds if you're interested in ideas for how you kind of start a side hustle or business licking the links for post called eighty five ways to make extra money I've got other links for twenty seven ideas of how you can also make money online do the ideas that are practical I've explored a lot of them and you can take some of those ideas away take some tips from them and really get started in doing something the key though is consistency that's really it's not really the money bit not really the money but it's a problem it's more the consistency kind of putting in the time periodically so I do for example an hour to two hours a day on this side house or this blogging and now creating YouTube content the next item invest a thousand pounds is to invest paying down some debts so most of us have doubts whether its credit card ads where a student learns whether its mortgage a thousand pounds goes very far in the same way that you might generate dividends from investing in shares or index funds or ETFs which then can compound and grow the time interest on your debt also compounds and gets kind of gets worse over time because the debt is grazin that means over time so committing your thousand parents towards paying down debt whether it's focusing on the most painful there so for example credit card debts notorious for having really high interest rates if folks on a credit card debt for example and pay you that down thousand pounds it's a really good way to guarantee a return because what you're doing there essentially is saving a ton of interest you can also commit it to overpaying on your mortgage which is one way without a doubt you can work towards the goal financial independence is certainly one way that we went about working towards our financial independence the next way to invest a thousand pounds is to invest in education so education by far is possibly the most kind of important thing you can kind of do with your time and with yourself so the fairest funds of education that's kind of formal education that we're all aware of so you know you might I've got to university or to college or whatever then there's informal education which can it comes with seeking out specialized knowledge so I give you an example say I had no internet skills when I started them or penny I've had to learn by paying for specialist courses like recently I've been doing a specialist course on SEO search engine optimization I've bought courses around blogging up what courses on how to do various things I've even bought books and things on specific subjects such as sales marketing investing stock market trading various niche subjects so education is an amazing way to invest offensive powers because you will reap dividends you know the thing is that what I mean things are kind of like the returns is is more a lifetime return you might not see it's kind of in monetary sums immediately but over time it's absolutely guaranteed in fact for me I've seen my income rocket you kind of just go up in multiples because I spent so much of my time not watching TV but spending it reading writing doing Corsairs meeting people networking all these are all aspects of educating oneself there you have it guys so how much you invest a thousand pounds I'd love to actually hear your ideas so please leave me some thoughts in the comments below if there are any any thoughts around investing any subject you'd like to learn more about let me know in the comments don't forget to like to share and subscribe and I'll see you guys soon on the next video take care

Channel: The Humble Penny

Views: 145,946

Keywords: how to invest $1000, how to invest 1000, how to invest £1000 uk, best way to invest, how to invest 1000 pounds, how to invest your money, ways to invest $1000, ways to invest £1000, UK, the humble penny, investing for beginners, investing in stocks for beginners, how to invest in stock market, how to invest your first 1000, how to invest 1000 dollars, how to invest in stocks for beginners, christian youtuber, how to start investing, Ken Okoroafor, investing, howtoinvestmoney

Id: 0jRQk8Xkvxg

Length: 15min 17sec (917 seconds)

Published: Mon Jul 15 2019