How To Invest £1000 | 3 Ways To Invest £1000 In 2021 UK

In this video, I share 3 ways that you can get started investing with £1000! Each of these ideas are really simple to get started with so if you are ready to invest £1000 then you could be putting your money to work for you right away and getting one step closer to achieving your financial goals!

INDEX FUND VIDEO: https://youtu.be/VPB1BJmDCw0

If you’re interested in checking out the gear I used to put this video together, here’s where you can find it:

Camera: https://amzn.to/2L4RO2T
Microphone: https://amzn.to/3bx4E57
Lighting: https://amzn.to/3rI2THK
MacBook: https://amzn.to/3pBbZ7j

#1 - INDEX FUNDS

These are funds that hold a basket of underlying investments designed to track the performance of a given market index, such as the S&P 500.

The manager of an index fund buys shares in all of the companies that make up the market index (or a representative example of them) and holds all of the shares within the fund.

This allows investors to buy into just one index fund rather than going out and buying shares from the hundreds of individual companies that make up the index, which would be both time consuming and costly!

Index funds also provide access to a large pool of companies in just one investment, so they offer a good way to diversify your investments and lower your risk.

The average return of the S&P 500 is about 10%, which is closer to 7% when adjusted for inflation, and an S&P 500 index funds is generally seen as the easiest way of gaining exposure to the overall return of the market.

You can invest in index funds via the traditional route of setting up an account directly with a provider such as Vanguard, or by investing in an ETF version of an index fund.

ETFs are exchange traded funds, where instead of dealing with the index fund provider directly you would invest in an ETF on the stock market via your brokerage account, in the same way that you would buy shares in individual companies.

The main differences between the two are that traditional index funds tend to have a minimum investment requirement and are traded at the net asset value (NAV) price which is calculated at the end of each day, whereas ETF’s don’t have a minimum investment requirement and are traded on the stock exchange, so their price fluctuates throughout the day based on different market factors.

#2 - REAL ESTATE INVESTMENT TRUSTS (REITS)

REITs are companies that either own, operate or finance income-producing real estate, and they do this across a number of different property sectors such as office space, apartment buildings, warehouses and hotel.

Mostly, REITs make their money through renting out space in the properties they own, which generates rental income that is paid out to investors as dividends.

This provides an opportunity to invest in the real estate sector without needing to go out and buy, manage or finance a physical property.

Most REITs trade on major stock exchanges and can be purchased through a brokerage account in the same way as other stocks, and there are also ETF versions of REITs available too.

A major benefit of REITs is that they are required to pay at least 90% of their taxable income out to shareholders, so they offer a good way of locking in reliable investment returns.

REITs tend to be favoured by investors seeking income, however property values do tend to increase over time so there is the potential to benefit from longer term capital growth too.

#3 - START A SIDE HUSTLE

There are many different options here but a couple of ideas to consider are starting an Amazon business or growing a YouTube channel.

There are so many examples of people that have succeeded in both of these things and it can all start with just a really small monetary investment as long as you're willing to put in the time.

With this investment, you're really investing in yourself so you have complete control over how hard you work to make it a success!

Each of these ideas are good ways to invest, but if you have debts that charge a high interest rate then it might be better for you to pay off your debts first before making any other investments.

For example if you have a credit card, you'd need to generate a return on your investment that's higher than your card's interest rate to make it worthwhile, and with the average UK credit card interest rate sitting at 22.5%, that's no easy task!

I really hope you found this video helpful, and if you did please be sure to give it a like and subscribe to the channel for more videos! Thanks so much for watching!!

*I may earn a referral bonus or affiliate commission through some of the links that appear in this video description.

Видео How To Invest £1000 | 3 Ways To Invest £1000 In 2021 UK канала Ryan Gibson