How To Invest Your Money During The Pandemic (2024)

FAQs

How to invest $1,000 dollars and double it? ›

Try ordering out less and plan your meals ahead. Keep your grocery shopping to the basics; make a list of what you need for the meals you planned and avoid making impulse buys that don't fit into your meal planning. Try to keep your meal plan basic as well so that your ingredients work for multiple different meals.

According to estimates from economists at the Federal Reserve Bank of San Francisco, excess pandemic savings peaked at $2.1 trillion in August 2021 and finally ran out in March of this year.

One way to potentially double $5,000 is by investing it in a 401(k) account, especially if your employer matches your contributions. For example, if you invest $5,000 and your employer offers to fully match at 100%, you could start with a total of $10,000 in your account.

How much savings should be for an emergency? Fidelity suggests to start by saving $1,000 worth of essential expenses to protect yourself from the financial fallout of a potential job loss or the loss of other income. If you're single but have family backup, you might be comfortable with 3 months of savings.

The estimated cumulative financial costs of the COVID-19 pandemic related to the lost output and health reduction is shown in Table 1. The total cost is estimated at more than $16 trillion, or roughly 90% of annual GDP of the United States. For a family of 4, the estimated loss would be nearly $200,000.

The crisis had a dramatic impact on global poverty and inequality. Global poverty increased for the first time in a generation, and disproportionate income losses among disadvantaged populations led to a dramatic rise in inequality within and across countries.

The wealth of white and Asian households increased the most in total dollars during those years. For many Black and Hispanic families, the boost wasn't enough to lift them fully out of debt.

Are pandemic savings gone? ›

Americans' Pandemic Savings Are Gone — And the Economy Is Bracing for Impact. The excess savings Americans stored away during the pandemic ran dry months ago, and the US economy is feeling the effects.

In the large poll of 2,500 adults, 65% of people who earn more than 200% of the federal poverty level — that's at least $60,000 for a family of four, often considered middle class — said they are struggling financially. A sizable share of higher-income Americans also feel financially insecure.

Buy US Treasuries

Treasury bills (T-bills) are short-term debt instruments that are paying out around 4.75% APY, giving you a guaranteed rate of return that is backed by the U.S. government. To make $1,000 per month on T-bills, you would need to invest $240,000 at a 5% rate.

A cash bank deposit is the simplest, most easily understandable investment asset—and the safest. It not only gives investors precise knowledge of the interest that they'll earn but also guarantees that they'll get their capital back.

Expert-Verified Answer

Using the formula for continuous compounding, we find out that it would take approximately 9.24 years for a $1000 investment at a 7.5% interest rate compounded continuously to double in value.

Making $4,000 a month based on your investments alone is not a small feat. For example, if you have an investment or combination of investments with a 9.5% yield, you would have to invest $500,000 or more potentially. This is a high amount, but could almost guarantee you a $4,000 monthly dividend income.

In fact, at the end of the five years, if you invest $1,000 per month you would have $83,156.62 in your investment account, according to the SIP calculator (assuming a yearly rate of return of 11.97% and quarterly compounding).