In this article, I will answer the question “How to invest 1 dollar?” by providing different ways depending on your personal objective. Even if a dollar is not a lot, I will show you that it’s still possible to make good use of this small amount of money.
How much money would you have at the end of the year if you save a dollar a day?
That’s the first obvious question we need to answer. Luckily, the answer is straightforward. Indeed, as there are 365 days in a year, by saving a dollar a day you would end up with 365 dollars at the end of the year.
With this amount of money, you have various types of investments possible. Let’s review them together.
Investing in yourself is the best investment you can make
If you are able to save one dollar a day, the first investment that I recommend is to invest in yourself. Indeed, in the long run it will help you to acquire new skills that will provide you new opportunities and open new doors.
There are various ways to invest in yourself:
- Take an online course in order to acquire new skills in order to get a better paying job. The good news is that there are many free courses available online. Find the right one for you.
- Buy books and read articles about cryptocurrencies (and most importantly the blockchain) in order to understand the concepts and then invest in the right crypto projects. With 365 dollars per year available, you will be able to create a small portfolio while learning about cryptos and trading in the process.
- Learn a new language. Indeed, it will open a lot of doors and you might even encounter interesting and high-paying job opportunities abroad.
Invest in gold and silver coins
Gold and silver coins are a great way to invest your dollars while securing your savings. Indeed, since the beginning of times gold has been considered a safe haven as it retains its value.
Silver coins, often called “The Gold of the poor”, is a great place to invest your few dollars as it combines the rarity of gold but there is also an industrial aspect to it. Indeed, silver is used in most of today’s tools. Moreover, the ounce is less expensive than gold’s one.
That’s why I often recommend to my friends to start by investing their 1 dollar a day (365 dollars a year) into a mix of gold and silver coins.
Regarding silver, I recommend starting with well-known coins such as the Silver Eagle or the Maple Leaf.
For gold, due to the current ounce price, it might be difficult to start investing with that small amount of money. Thus, you may want to start looking for 1/10 oz coins such as the American Gold Eagle or the Canadian Gold Maple Leaf.
Last but not least, if you choose this path, it is generally advised to do a ratio between your investments in gold and silver.
Opening a savings account in a bank
You might want to invest your money but having some savings available is more useful than what you may think.
Indeed, in life nothing is never sure so it’s always useful to have some money in case of emergencies of unexpected events.
As we previously saw, with saving a dollar a day, you would be able to end up with 365 dollars more in your bank account at the end of the year.
Moreover, if you are to maintain this habit over time you will end up with:
- 730 dollars in savings after 2 years,
- 1 825 dollars in savings after 5 years,
- 3 650 dollars in savings after 10 years,
- 7 300 dollars in savings after 20 years,
Sounds cool right?
How to invest 1 dollar: the conclusion
We’ve seen that there are many options available invest your 1 dollar. Some ways are more straightforward than others but all of them are interesting.
Overall, I want to underline the fact that there are no miracles and investing is a long-term strategy so you should be patient and take your decisions wisely on the journey.
Even if 1 dollar a day is not much, you are already on the good path so keep up and keep learning about investing and personal finance by reading our other articles.