What is a good way to invest 1000 dollars?

I would like to start making some investments. SInce sept of 08 I started working part time just so that I can go back to school to get my RN degree. I would like to start investing some money in stocks or something. Thanks for your help!
Additional Details
THe 1000 dollars isnt my whole savings its part of my savings that I would like to invest. I know I will not need the money since I have other funds for emergencies.

Good for you sistuh.
Now that the market affords you this 50% off sale so to speak, as an investor myself I would buy only stocks that pay dividends. When you buy those stocks and use your dividends to automatically buy more stock, you avoid brokers fees, its automatic so you don't dwell on it,
it is dollar cost averaging (which means you buy when it is up or when it is down, but you are always buying and it averages out) , dividends are like free money, you do not pay capitol gains tax until you sell, and stocks historically in the long run out perform the other options. History does have a tendency to repeat itself.
I would begin with a mutual fund that invests in dividend paying stocks.
American Century has a bunch of funds
Fidelity has a bunch
Get a long term growth fund with solid dividend paying companies in it.
Johnson and Johnson, IBM, McDonalds.
Search on Yahoo search engine "dividend paying funds" and don't look back.
Buy a stock fund and you are buying a manager that puts your money where you want it. In dividend paying stocks.
Like me you won't regret it. I retired at 53 and am enjoying the fruits.
Don't buy at the top. Don't sell at the bottom.
Slow and steady wins the race.
Neither a borrower nor lender be.
You can become more aggressive as you learn and become more adept.
You go girl.

If you're going to want to use this money for school soon, though, you'll probably want to keep your money more accessible. The general bad news, just to get it out of the way: Pretty much all investment/savings/CD rates are down right now.

Generally, you'll get a better rate if you go online. (For example, most branch-bank savings accounts charge service fees, require minimum deposits, limit your transactions, and pay less than 1%. My savings account is with ING Orange online. With them, there are no minimums, limits, or service fees. My interest rate is variable, meaning it fluctuates with the market, but it's still earning 2.5%APY right now. All transactions are conducted electronically.)

Something else you might consider that's a compromise between investments and savings: CDs. Short for Certificate of Deposit. When you put your money in a CD, you promise the bank not to touch it at all for a specified amount of time. The perk for them is that they KNOW they will have that amount of money in their reserves to lend out. The perk for you is that the bank will pay a noticeably higher interest rate for the time your money is in the CD. If you put $1000 into a CD, you will be penalized (sometimes severely) if you withdraw it before the period is up. But, if you're sure you don't want to touch it, check with your local branch about their CDs.

Generally, a CD can last from 6 months to 10 years or longer. You will choose from the bank's options: 6 months, 9 months, 1 year, 2 years, or whatever. The longer the term, the higher the interest. When a CD "matures" at the end of the term, you can go in and withdraw it within a set number of days. If you don't withdraw it, generally, your money (including the interest you earned) will automatically be rolled over into a new CD for the same amount of time. So if you choose a 6-month CD, then decide you still don't need the cash, it will go back untouchable for another 6 months.

As with savings accounts, you can find better deals with banks that don't have branches and only operate online. If you want/need more guidance, though, stick with your bank branch so you can get easier service.

If you start talking about larger sums of money, there are other options, but for just a few $1000, here are your basic options:

SAVINGS ACCOUNTS. Pros: You can deposit without limits, you can withdraw AT LEAST a few times a month if desired. Cons: Interest/returns can be embarrassingly low.

CERTIFICATE OF DEPOSIT (CD). Pros: Interest rate MUCH higher, many term options. Cons: Can only deposit more or withdraw (without penalty) at maturity.

STOCKS. Pros: Scoop up tons of cheap stocks now and reap the benefits down the road. Cons: You have to 1) make good choices WHICH stocks you buy, and 2) stay in it for the long haul.

(And you may be used to hearing the phrase "stocks and bonds," but government bonds haven't been a good choice for a coupla years now at least.)

One last thing you might consider: ALL interest rates are down these days. Including loans. Saving up enough to pay for your degree could take quite a long time at current interest rates.

The benefits to taking out student loans: You can start on your degree right away (with the next school term), no waiting. Assuming you get through school in the least amount of time possible and then find a job right away, your nursing salary will help you pay off the loans in no time. If you wait until you've saved up enough, it could still be a few years before you get started (depending on how much you make part-time and what your goal is).

Don't take out a student loan unless 1) you are completely committed to graduating and 2) you are reasonably confident of finding employment. (There are nursing shortages these days, so I wouldn't worry about that if you're a good worker with a good personality.)

One last note to get you thinking: I am about to start working on my master's degree (while teaching full-time). Earning it will get me an automatic raise. Although I agree with your philosophy of wanting to save up to pay for my degree in cash, I've already crunched the numbers for myself.

Based on my current budget, saving enough to pay for my next degree in cash would take me about 3.5 years. Earning it would take me about 1.5 years. Meaning, in 5 years, I would start to benefit from my higher salary.

Going ahead and starting on my degree this summer using student loans, I will still graduate in 1.5 years. Then I'll get my raise, which will CHANGE my budget, allowing me to set aside MORE cash to pay off that loan. I'll be able to pay off the loan in 1.8 years and then start enjoying my raise debt free. In a little over 3 years. Saving: 5 years. Loan: 3.3 years. (But again, make sure you're completely committed to completing your schoolwork as quick as you can REASONABLY do it, and make sure you're confident in your ability to find work within a reasonable time frame after graduation.)

Good luck with your financial decisions and your degree!

If you're going to go back to school anyway soon, I would just put the $1000 in a savings account. It's safe, accessible, and will earn a little bit of interest. Right now you could lose money on stocks; stocks should only be a long-term investment. You'll need the money before long for school so don't go exotic on the investment.

Right now a CD would be best.

put it in a savings account,

The dollar is going to be worth less in 5 months. Your spending power of that dollar. will only purchase 50% of what it buys now. The $ has fallen 40% of it's worth in the last 6 years.

Purchase things you will need in the future. Work clothes, shoes, makeup, etc...

Your going to purchase these things anyway. Holding on to the money will see it to devalue in the bank. Purchase some silver coins.

I wouldn't invest it in anything at the moment, especially stocks! Better to put it in a savings account, that you don,t touch for 6 months, 1 year or 2 years. Then you get pretty good interest on it.

I'd start with an IRA unless you plan on using the money in the near future (6 months to 1 year) if that's not viable try investing in an online bank such as ING Direct because they pay better rates than traditional bricks and mortar banks. I'd think about a 6 month CD (Certificate Of Deposit) !

Also keep in my mind that credit unions often pays more than banks as well so keep your options open. Stocks right now are iffy at best but if you want some sound advice I suggest checking out the motley fool, msn moneycentral. smart money, forbes and cnn money for thorough objective advice.

ING Direct's Orange CD is paying 2.75% APY(Annual Percentage Rate) as of currently. ING Directs also has a investment fund called share builder.

Note: Traditional IRA's contributions may have a deductible on your annual income taxes and earnings arenâ€™t taxed until the time of withdrawal. Withdrawals can be made without penalty once you reach the age of 59Â½, and you must begin withdrawing from your account when you reach the age of 70Â½.

This IRA is an excellent option for anyone eager to save for retirement and reduce their taxes at the same time.

On Roth IRA's, youâ€™ll pay taxes on your contributions before they are made, but in exchange for paying them now, you wonâ€™t have to pay any when you withdraw your money later in retirement. You can also contribute at any age and earnings may be withdrawn after age 59Â½ without penalty.

If you want immediate access while earning a bit of interest, I'd just go with a savings account !

Good luck !

Roth IRA with Northwestern mutual. Take a less aggressive/ passive investing position with it, and your nearly guaranteed a better return than any savings account at any bank.

Usually a good idea to keep 1000 in an easy to access account for emergencies. If this is above that, now is the time to buy stocks. Won't be back to 14000 level, but should go up in next year.

it is good time to invest into stock, just choose some save stock like google, ge, apple...if you decide to trade, then you need to open an online trading account. for a beginner; personally, I think Sogotrade is best among all online brokerages. You can get a lot of free trades: about 100 free trades with 500 minimum deposits. It has very good customer services, it also has live help, and you can chat with representatives about any question. After that, only 3 dollar for each trade, pretty sweet when compared with other online brokerages.
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