A beginning investor with $1,000 to spend can start an emergency fund, says Mitch Tuchman of Forbes magazine. If the investor already has six months' worth of expenses in an emergency fund, she should pay off any credit card debt before investing in a balanced index fund.
Instead of investing in stocks or mutual funds, one can use $1,000 to learn a new skill or upgrade Internet skills, suggests Kiplinger. Investing in oneself by learning a new skill that helps the investor start a post-retirement career or secure a promotion is an effective way to use $1,000. Another constructive way to use the amount is to pay down the principle of a mortgage. A homeowner also can invest in her home by upgrading the kitchen or powder room, as this pays off in a higher value for the home.
One can add to her retirement savings, start a Roth IRA or contribute to a child's college fund, advises Time Money. A small investor could use the money to help her parents de-clutter their home or to refurbish her own home, making it more appealing. While $1,000 may not make major changes to one's investments, it can be used to give a boost to existing assets.