There are many ways to invest one thousand dollars by an individual investor. This money offers a good entry point into the world of investments to many people. It also allows individuals to continue investing in the future and to start building wealth. One thousand dollars can always be place in a bank in a money market or certificate of deposits, but this is called savings not investing. Use these steps to help you invest $1,000 and continue to build wealth into the future.

Step 1

Research some of the mutual fund companies and individual company stocks to invest $1,000. Use the internet to find two or three of the largest mutual fund companies to place some of the money in stock funds. Find some of the large American company stocks such as Coca Cola, Microsoft, Disney, and Exxon for examples. Plan to invest some of the money directly in these types of companies.

Step 2

Consider investing in two stock mutual funds. Find a mid cap and small cap stock mutual fund. Use the mutual fund company's screener to find funds in these categories. Narrow your investment criteria by buying into growth stock mutual funds.

Step 3

Limit your risks by buying into the more conservative growth funds; avoid investing into the fastest growing funds. Place $250 into each fund initially, this will leave you with $500. Continue investing into these funds monthly using the automatic investment feature. Some mutual funds companies allow as low as $50 monthly investments. The monthly investment allows you to build wealth over time, especially if you reinvest the dividends and capital gains.

Step 4

Buy two large company stocks directly. Many of the large American corporations offer their stocks for sale directly and through Dividends Reinvestment Plans. Look for solid growth stocks that also pay dividends. Place $250 in each company stock. Use Dividends Reinvestment Plans and review the listings of large US companies participating in them. This is a very low cost method for investing smaller sums of monies.

These plans also make monthly investments very easy allowing individual investors to build wealth. Make additional small investments through out the year to increase the number of shares you hold.