Summary

Gina Young is an accomplished finance writer who has written for publications including SuperMoney, Examiner, Lexington Law, Talk Markets, and CreditRepair.com. Throughout her career in finance, Gina has advised clients in the areas of investing, retirement planning, refinancing, debt consolidation, and credit repair. As a manager in the financial industry, she trained and educated employees on how to succeed in sales and marketing.

What financial steps would you take if you had an extra $1,000? Should you stash it in savings, knock out some debt, or try to grow it? While this article zeroes in on eight smart, research-backed ways to invest that money right now, it is important to remember that before investing, you should pay down so-called bad debt and build an emergency savings fund.

Each strategy varies in terms of risk, time horizon, and how it will affect your specific financial goals — but all are geared toward helping you decide which of the eight investment strategies to take. While $1,000 might not seem like a game-changer, starting to invest early is one of the most powerful steps in building long-term wealth. Of course, you can also apply your strategies to any extra disposable cash in excess of $1,000.

A high-yield savings account will allow you to earn a substantially higher interest rate than in a regular savings account. Currently, the best high-yield is 5%, 13 times higher than the Federal Deposit Insurance Corporations (FDIC) national average for regular savings accounts.

High-yield accounts are a safe place to put your money because they are FDIC insured up to $250,000. High-yield savings accounts are an ideal vehicle to utilize to build an emergency fund or store money for near-term goals. However, there may be some factors to consider, such as

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