How to Turn $1,000 into a Monthly Income

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lot of Americans have experienced unprecedented financial problems brought on by the pandemic. According to reports from June of last year, three months of the pandemic saw a higher rate of unemployment compared to two years of the Great Recession. An estimated 14 million people were unemployed then, a huge jump from February's 6.2 million estimate of the same year.

The pandemic has undeniably left millions of Americans in financial uncertainty. Fortunately, hope is returning with nationwide vaccine rollouts. Meanwhile, people are becoming savvier in finding ways to generate an income. So if you want to know how you can earn more money with a $1,000 seed, then here are the following money-making strategies that you can try!

Run a Dropshipping Business

Dropshipping is when, instead of stocking the products your customers buy, you purchase them from third-party suppliers. That means you don’t need your own inventory — just reliable suppliers! A dropshipping business is beneficial to entrepreneurs with limited capital because you can directly sell to consumers without producing an inventory of products.

Luckily for cash-strapped entrepreneurs, putting up a website or social commerce site is affordable. Domain names and hosting services have annual fees, but they generally cost less than $100. Alternatively, you can sign up for existing e-commerce platforms like Shopify, which has merchant plans that range from $29 to $299 and small transaction fees. The rest of your capital will go towards ad placements at $2 per click to boost your conversion rate and, of course, the products you want to sell. As we noted on our blog, a $1,000 investment will be more than enough to start earning an income.

Day Trading

Man trading stocks and reading a candlestick chart.

Day trading rewards investors by maximizing the growth of their capital. You can start engaging in day trading by investing your capital in popular markets, such as the foreign exchange (forex) and stock markets.

Your first step would be to open a brokerage account, which will serve as your gateway to buying assets, such as stocks and bonds. If you want to establish an account through a digital platform, you might have to pay a monthly fee of around $150. You can also open an account with a financial planner or a brokerage company, which may charge you a commission. An initial investment of $1,000 would be a good start, as it will give you some leeway. If you want to mitigate risk, just make sure you follow the 1% rule. So if you have $1,000 in your account then the most you'll want to risk on a trade is $10. As you get more confident and better understand the markets, your revenue will likely grow into a monthly income.

Invest in Real Estate Investment Trusts (REITs)

A Retail Estate Investment Trust (REIT) is a company that owns and operates properties, such as apartment buildings, shopping centers, hotels, and offices. REITs allow average and low-income investors to participate in the real estate market without having to purchase or manage the properties themselves.

Investors make money when the properties generate income, which is why REIT properties always involve more commercial properties. Much like day trading, you can start buying REITs by opening a brokerage account. Opening an account is free, but trading platforms may charge certain amounts. Just like stocks, you can then proceed to purchase REITs with as little as $1000.

Wrapping Up

All of these can be good options to generate a profit when you only have $1,000 as capital. If you are smart with how you invest it you could easily turn it into a monthly income.