Ramit SethiRamit Sethi: The No-BS Guide to Living a Rich Life

If I Were Starting From $1,000 Today… Here’s What I’d Do

5 Jan 2026 · 0 min

Watch on YouTube

0:28

Ramit Sethi breaks down what to do with $1,000: put $500 in a high-yield savings account for emergencies, invest $500 in a Roth IRA or 401(k) through an S&P 500 index fund, then automate monthly contributions of even $50.

Questions this video answers

$500

$50 per month

A low-cost S&P 500 index fund or a target-date fund (via a Roth IRA or 401(k)).

Here's what I would do if I were beginning again today. Number one, emergency buffer. Take 500 bucks, park it in a high Yield savings account, and that is an emergency buffer. Number two, Roth IRA or 401K. With the other 500 bucks, I would open up an investment account. I would pick a low cost index fund that tracks the s and P500 or my favorite, a target date fund. Number three, automate. Set up an automatic transfer, even if it is just $50 a month.