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 are so many 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.
Let’s get to it!
The Best Ways To Turn $1,000 Into $10,000
If your goal is to turn 1k into 10k, there are many different ways to accomplish your goal.
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.
And you can make serious money 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 6 figures annually reselling her finds 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
Another strategy to turn $1,000 into $10,000 is to invest that money into income-generating 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 crowdfunding companies to invest in commercial and residential real estate with other investors.
For example, crowdfunding 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.
Granted, turning 1k into 10k with this method is going to take years. But it’s completely passive, and Fundrise pays quarterly dividends that you can reinvest to acquire more shares.
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 out what to invest in is the challenging part.
You can also try using robo-advisors like Betterment that build portfolios for you to match your goals and risk tolerance. There’s a $0 requirement to get started, and Betterment only charges 0.25%, which is only $2.50 for a $1,000 portfolio per year!
Alternatively, stock picking services like The Motley Fool can 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.
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 This Online World in college with a cheap hosting plan, domain name, and $45 blogging theme.
This is a way better 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.
6. Invest In Small Businesses
If starting your own business isn’t your thing, did you know you can invest in other businesses and generate passive income at the same time?
Companies like Mainvest let you invest in small U.S. businesses starting with just $100. From there, you get regular loan repayments from business owners until you’re repaid, and then some.
Mainvest targets 10% to 25% returns for investors, and $1,000 could be the start of a new investment portfolio for you that also supports business owners.
Typically, Mainvest has open investment opportunities for businesses like cafes, bars, restaurants, and food trucks. It provides a lot of information about businesses, including financial statements, to help you with due diligence.
Of course, like other forms of investing, Mainvest carries risks, so always do your research and don’t invest money you can’t afford to lose.
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 Udemy have a wealth of courses on subjects like:
- Data analysis
- Graphic design
- Freelance writing
- Web design
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
If you’re still wondering how to turn 1k into 10k, you could always consider experimenting with 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 is extremely risky, 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 Fundrise or using robo-advisors like Betterment are the most passive solutions. Both companies are completely hands-off for investors, and you can start with just $10 and $0 respectively.
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.
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!
Looking for more money-making ideas? Checkout:
Kim Ritter is a frugal living expert, blogger and mom of two from small-town Iowa. What began as an effort to help her family save a few dollars a month has now transformed into a full-time passion to help others save and make money. Kim is also an expert in money-making apps, side hustles, and personal finance. Visit her online at Two Kids And A Coupon and follow her on Twitter for more money tips.