The Compound Interest Advantage
In my opinion one of the best things a young person can do for their future is put some money into a snowballing investment system. "Compounding" is the process by which investments can build upon their own profits to continue to grow. For example 1000$ might be all you have today but small regular deposits can really add up with time. Here is a compounding calculator I use which can help you to look at how these small regular investments can grow by time.
https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator .
I'd also look into Real Estate Investment Trust and dividend producing companies/ETFs as they seem to be one of the best passive income investments. Also, indexes for growth but it'd take some action to tap the income, on your part later down the road.
Crypto is very volatile now but has a greater yield potential. Things go north and south very quickly. Do it right, you win. Do it wrong, you loss. Investors who’re into HODLing(buy low, sell high) can experience huge losses because of market volatility therefore try to learn and understand how to beat the market volatility even in times of dips, it’s easy to make profits when the market is bullish but very difficult in times of dips.
Remember the stock market on average returns 10% a year, and a good amount of sophisticated traders fail to hit that mark.
That being said there are many vehicles you can use to "make it" in life early. But be sure you know where you're objectives and goals lie. Compound interest is super powerful and at your young age it is your advantage. Personally, one thing that I always find people are messing up is that investing is passive, trading is another job.
You actually don't need a lot of money to earn a good profit but you would be taking on a lot of risk. If you wanna go the trading route, be ready to lose some money before you start making any. You can definitely make a good amount with $1000. If you want to be spicy you can get into day trading, options and leveraged etfs but be prepared to potentially lose all that 1000$.
If you want my non-financial advice, invest in yourself first, work towards finding a job that pays better (that can be trading if you so wish) and you can study and play around with the money you are willing to lose.
