When building wealth, you may have to spend some money upfront to make more in the future. And while you may need money to make money, the good news is that you can get started with $1,000 instead of waiting until you have thousands of dollars saved up. When building wealth, everyone has a different starting point, and you have to work with what you have.
GOBankingRates spoke with a financial advisor about the best $1,000 they spent to make more money. Here’s a look at how this investment — and how spending money — can increase wealth.
The Best $1,000 Ever Spent
“By far the best $1,000 I’ve ever spent was on furthering my own financial education,” said Scott Sturgeon, founder and senior wealth advisor at Oread Wealth Partners. “Specifically, for me in my role as an advisor, the costs associated with studying for and taking the CFP certification exam were probably more than $1,000, but they were still worth every penny.”
Sturgeon stressed the importance of investing in his education to build wealth. This certification helped him learn about money management and led to his current career.
The Importance of This Investment
“Being a CFP professional has given me ample knowledge on a broad range of financial planning topics, the ability to provide service and advice to clients that go far beyond simply investing money, and the confidence and ability to launch my own wealth management and financial planning firm in 2021,” Sturgeon noted.
This investment was necessary, as he wouldn’t have gotten into his current business without the proper credentials. By taking courses and increasing your knowledge, you discover new possibilities that you never thought existed before.
Sturgeon added, “The combination of those three points has been really rewarding emotionally and professionally, but also personally lucrative.”
How Money Spent Wisely Can Increase Your Wealth
To increase your wealth, you’ll have to spend money to accelerate the process. Here are a few ways that spending wisely can increase your wealth.
Invest in Your Education
“Spending $1,000 investing in yourself, your education or developing whatever form of unique value you can provide is almost always going to reap greater returns and build wealth over time than any other kind of investment,” Sturgeon said.
While there are many other notable investments that one can make, you can’t ignore the value of investing in your knowledge. You can earn more and improve your earning potential as you learn more. If you want to save more money, you have to start by increasing your income first — and you can increase your income by expanding your knowledge.
That one course that you take can build momentum towards a new career and a completely different philosophy towards money. If you’re unsatisfied with your current role, you can always look into available educational opportunities.
Save When You Can
“The biggest thing about wealth building is that it’s less about what you make and more about what you keep that ultimately determines your ability to grow your savings,” said Sturgeon.
Once you invest in your knowledge and make more money, you have to get better at saving and investing in the right assets to ensure your funds are growing. This is one of the bigger challenges in personal finance, because you won’t always know when to save and when to spend.
Watch Where You Spend
“Being smart about what you spend money on and making sure you’re investing it in building equity is probably the most common theme among the wealthy,” Sturgeon added.
If you want to get serious about building wealth, you’ll want to spend your money on assets that can help you make more money in the future. Once your income increases, spending the money on treating yourself may be tempting. However, you don’t want to fall behind on your savings goals because of short-term distractions.
How You Can Invest $1,000 Today
Sturgeon shared numerous ideas for building wealth once you’ve accumulated some savings. Some options include:
- Stocks: Investing in a diversified portfolio based on your risk tolerance can help your money grow in the stock market.
- Real estate: You can invest in rental properties, REITs or crowdfunded real estate projects to build wealth through real estate.
- Building a business: If you’re passionate about entrepreneurship, you can invest your money into building a business.
Sturgeon emphasized the importance of investing in appreciating assets. How you invest your money will depend on your personal experience and how much risk you’re willing to take on.
If you’re planning to invest that $1,000 in your professional development, you have several options. Here are a few:
- Upgrade your education: You can spend $1,000 on certifications, courses and other education that will make you more valuable to employers or enable you to start your own business.
- Attend an event in your field: You can spend the money on attending networking events to expand your professional circle so that you can create new opportunities for yourself.
- Pay for professional coaching: You may need some structure or direction if you’re feeling stuck. This is where it may benefit you to work with a professional coach to help you determine the next steps.
Other $1,000 Investments Worth Considering
Sturgeon is far from the only finance expert who found a $1,000 investment that enabled him to build wealth. GOBankingRates spoke with other financial advisors who shared investments they were proud of.
Spending Money on Health
“I believe the best $1,000 I’ve ever spent was on yoga,” said Marguerita Cheng, CFP, expert contributor at Annuity.org. “It all started last May, when I took advantage of a $29 two-week trial at a local women-owned yoga studio. After experiencing its benefits firsthand, I became a member in June 2023. Over the course of the year, I invested $899 in yoga classes, finding immense value in each session.”
“For me, this investment isn’t just about expenses; it’s a commitment to my overall health,” she said. “Health is wealth, and yoga is a priceless investment in my well-being.”
While you improve your financial situation, you want to ensure that your physical wellness is there so that you can enjoy your wealth in the future. Investing in your health is rarely discussed in personal finance, even though it is critical to your quality of life.
Children’s Education
“I invested $1,000 into a 529 account for my daughter the second I got her Social Security number,” said Crissi Cole, CFP, founder of Penny Finance. “That $1,000 became an immediate tax credit in Massachusetts.”
She explained, “That $1,000 will grow to $5,000 tax-free for college. If I do $1,000 yearly for her, she will have $60,000 in her college savings account.”
Sometimes, building wealth is about leaving a legacy and helping your family. In this case, Cole’s daughter can hopefully afford college in the future without racking up massive amounts of debt.
Closing Thoughts
“Spend money on things that will make you money,” Sturgeon concluded.
If you have $1,000 to invest, you can use this money to start building wealth by looking for ways to expand your knowledge. You never know when a $1,000 investment can change your entire life.
More From GOBankingRates