So, you're wondering how to turn $1,000 into $10,000 and need some inspiration to get started.
The great news is that there aresomany different ways to flip money so that it generates additional income.
Many of these ideas are also passive, so you can make your money work for you in the background while you go about your daily life.
If you're ready to start building wealth and want to turn 1k into 10k, this is definitely the post for you.
The Best Ways To Turn $1,000 Into $10,000
As mentioned, some of these ideas involve creating passive income streams for yourself with your capital. In contrast, others involve using your $1,000 dollars to fund a new side hustle.
Decide on if you want passive or active income and then dive into our list of ways to flip $1,000 into $10,000!
1. Retail Arbitrage
Have you ever bought something and then resold it for a profit? If so, you’ve done what is called retail arbitrage.
This process of buying something at a low cost, and then reselling at a profit has helped many earn thousands or even millions of dollars.
Retail arbitrage is also a great way to turn $1,000 into $10,000 since this starting amount of cash lets you buy enough inventory to test several products.
As for where you sell stuff, people often sell through channels like the Facebook Marketplace, Amazon FBA, or various selling apps like eBay or Mercari.
And you can makeseriousmoney with retail arbitrage. Here are a few personal examples from my husband and friend:
- Reselling Thrifted Finds on Poshmark – A friend of mine is a thrift store queen and can spot designer brands on a moment’s notice on thrift store racks and in their bins. While she originally used her skill to find fun vintage finds to wear herself, she realized she could resell her finds for profit. She now makes over six figures annually reselling clothing and shoes on Poshmark and was able to leave her full time job.
- Flipping Entertainment Swag on eBay – My husband often spots close outs on entertainment items such as Funko Pops, LoungeFly bags and more for low prices and resells for top dollar online. He scours bin stores and clearance racks for these limited edition items and nets a nice profit from reselling online.
When making money from retail arbitrage, the key is to keep your costs as low as possible. Whether you buy in bulk online, hit the deep discounts on clearance at major retailers or find another way to buy items inexpensively, keep your costs low to maximize your profits.
2. Invest In Real Estate
Of course, one thousand dollars isn't enough for you to buy a rental unit or land. But you can use real estate investing platforms to invest in commercial and residential real estate with other investors.
For example, investing platforms like Fundrise let you purchase shares of income generating properties. And the best part is that you can get started with as little as $10.
This platform pools the money from investors to purchase commercial and residential properties that generate rental income. Investors have historically earned around 8% annually, and you pay 1% in annual management fees.
And this is just one example. There are plenty of other popular real estate investing apps and websites you can try like:
- Arrived: Lets you invest in individual rental properties with only $100.
- Streitwise: A popular dividend income option that also invests in real estate.
Granted, turning 1k into 10k with this method is going to take years. But it's completely passive, and companies like Fundrise pays quarterly dividends that you can reinvest to acquire more shares.
Learn more about investing with Fundrise!
Fundrise disclaimer: This is an endorsem*nt in partnership with Fundrise. We earn a commission from partner links. All opinions are my own.
3. Invest In Stocks & ETFs
Like real estate investing, one straightforward way to turn 1,000 dollars into 10,000 dollars is to invest in a variety of stocks and ETFs.
These days, most online banks let you open a commission-free brokerage account where you can begin trading. From there, you can buy growth stocks, dividend stocks, or various ETFs and mutual funds if you want more diversification.
The beauty of investing is that you have the power of time and compound interest on your side.
For example, if you just invest $1,000 and then contribute $25 per week to your portfolio, you have over $22,000 after 10 years if we assume a 7% annual rate of return.
And again, this is just starting with $1,000 and making small contributions; you can earn even more with diligent investing.
Really, figuring outwhatto invest in is the challenging part.
However, you can use commission-free brokers like M1 to start investing without paying high fees. And it also has pre-built portfolios, called pies, that can be useful if you're a beginner.
Alternatively, stock picking services like The Motley Foolcan help you find various companies to invest in if you're more interested in stocks.
Finally, investing in other non-traditional investments can also be a profitable way to invest as well. Whether you start with cryptocurrencies or purchase NFT’s, these alternative investments are often providing big returns even with a small additional investment.
Just make sure you speak to a financial advisor or do your own research and due diligence!
4. Start A Side Hustle
While this isn't an obvious way to flip $1,000, you can always invest this starting amount of cash into equipment that lets you start a new side hustle.
Side hustles are the new part-time job these days, and millions are finding success with a variety of gig opportunities to earn money. A simple example would be to buy a bike with your $1,000 and to begin delivering food for DoorDash or Uber Eats.
Tom's friend worked for both companies after graduating college, and he could make $15 to $20+ per hour by delivering food as a bike courier in downtown Toronto.
This is just one example. You could also experiment with buying things to rent out for cash, like a camera or some sort of tool.
People do this all the time on rental marketplaces like Fat Llama, so there's plenty of opportunity to start a side hustle with a bit of money.
5. Start An Online Business
If you’ve ever wanted to create your own business, the good news is that it is easier than ever!
People are earning money online with all sorts of methods these days. And many online business ideas take way less than $1,000 to start but have incredibly high income potential.
Blogging is the perfect example.
Tom started WebMonkey in college with a cheap hosting plan, domain name, and $45 blogging theme. Almost five years later, WebMonkey makes $500 a day or more thanks to Mediavine ads and affiliate marketing.
This is awaybetter return than turning $1,000 into $10,000, and again, the income potential is pretty much endless.
And blogging is just one example of a business idea you can start out. Other online business ideas you can try include:
- Selling products on a Shopify store
- Launching an Etsy print on demand business
- Selling memes or other merchandise on sites like Redbubble
- Making money with a YouTube channel
A friend of mine sells low content books such as journals, notebooks and coloring books online and prints them on-demand as she receives orders. These affordable products have sold quickly, and she was able to grow her store from a handful of items to several hundred that now have high figure sales that support her family.
While some online businesses may require some start up costs like a web domain address, supplies, or raw materials, the investment can quickly pay off.
And many online businesses can eventually make money on autopilot, so they're excellent passive income side hustles you can test out.
6. Invest In Alternative Assets
Alternative asset investing is another option for flipping money.
People do this in all sorts of ways. And the idea is to essentially buy an asset people think is valuable, hold it, and then try to flip it for a handsome profit.
There's also lots of ways to get started, and examples of alternative assets people invest in include:
- Sports cards
- Gold and silver
- Niche collectibles like Pokemon cards or Yugioh cards
- Fine wine (you can use companies like Vint for this as well)
- Fine art (companies like Masterworks are popular for this)
Buying these alternatives online is one way you can start. But you can even find some assets at places like garage sales or pawn shops.
This route to flipping $1,000 can be risky, so make sure you do your due diligence and consider your risk tolerance before getting involved. And if you ever have questions, you should speak to a financial professional.
7. Learn A New Skill
Want to learn a new skill? Even if it requires some equipment or classes for education, this investment can pay off down the road.
About 12 years ago when blogs and social media were becoming a thing, I started experimenting with different platforms to learn more about them. Today, the skills I’ve learned have led to a full-time career that I can do from home while spending time with my family.
And these days, you can learn anything on the internet for free or without paying too much money. For example, websites like Skillshare have a wealth of courses on subjects like:
- Coding
- Data analysis
- Digital marketing
- Graphic design
- Freelance writing
- Web design
- Video editing
With $1,000, you can definitely find a few courses that can help you beef up your resume with new skills. And if you land a high-paying job as a result, this is one of the best investments you can make.
Extra Reading – The Best Jobs That Pay $5,000 Per Month.
8. Try Peer-to-Peer Lending
The idea here is to essentially act like a bank and lend people money. They agree to pay you back your money by a set time and at an agreed upon interest rate.
People make money with Reddit by doing this on r/Borrow all the time.
Now, this idea isextremelyrisky, and it's not for everyone. There's a chance the person you lend $1,000 to just disappears or can't pay you back in time.
However, it's a popular method some people use for flipping cash, so it had to make our list.
Frequently Asked Questions
What's The Most Passive Option For Turning $1,000 Into $10,000?
In our opinions, options like investing in real estate with Fundriseor using prebuilt portfolios with platforms like M1 are the most passive solutions. Both companies are completely hands-off for investors, and you can start with just $10 and $0 respectively.
How Can I Turn $1,000 Into $5,000 In A Month?
In my opinion, starting an online side hustle or business is one of the best ways to turn 1k into 5k a month or more. This is because many online businesses have low startup costs but have a high income potential.
Blogging and YouTube are perfect examples. WebMonkey makes $20,000 a month or more between both income streams, and each one took less than $1,000 to start.
What's The Easiest Way To Start?
Many people use their online broker or popular trading apps to begin investing to make money. In fact, you can probably open and fund a brokerage account and start out in a day or two.
Starting side hustles takes a lot more work, and same goes for launching a profitable online business.
Final Thoughts
I hope our guide on turning $1,000 into $10,000 gives you some ideas for how you can make your money grow over time.
As mentioned, think about if you want a passive option or something more active.
Additionally, know what kind of risk tolerance you have, and do your research! Speaking to a financial advisor is also a great idea if you need help and don't know where to begin.
Best of luck!
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