How To Invest $1K, $10K and $1M in 2026, According To Ramit Sethi
Written by
Tobi Opeyemi Amure
Edited by
Amen Oyiboke
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Many people struggle with investing decisions, watching savings sit idle while inflation quietly erodes their purchasing power over time each year. It’s one thing to make money, but it’s another to keep and grow it effectively through smart investment strategies.
According to a deVere Group survey, even millionaires fall victim to behavioral patterns and outdated ideas that undermine their financial goals.
Financial expert Ramit Sethi, host of Netflix’s “How to Get Rich,” addressed this problem in a recent video, with a clear roadmap for different financial and investment levels.
A Strategic Roadmap for Every Investment Level
In a YouTube video, Sethi laid out a clear roadmap for investors at every level, from beginners to seasoned wealth builders. Sethi emphasized that success isn’t about picking the perfect stocks, but about creating systems that work automatically while you live your life.
The foundation of Sethi’s philosophy involves understanding that different investment amounts require different strategies, though underlying principles remain constant. According to Sethi, wealthy people don’t have access to dramatically better investments; they simply invest larger amounts in boring index funds.
This revelation challenges common misconceptions that sophisticated investors use secret strategies unavailable to ordinary people building wealth through disciplined saving.
How To Invest Your First $1,000
For those starting with $1,000, Sethi suggested dividing the money between immediate security and long-term growth rather than investing it. According to Sethi, you should park $500 in a high-yield savings account as an emergency buffer to prevent debt. This buffer protects you when unexpected expenses arise, like car repairs or surprise bills that could derail your financial progress.
With the remaining $500, Sethi recommends opening a Roth IRA or contributing to a 401(k) and investing in funds. Sethi suggested choosing a target date fund matched to your expected retirement year, such as Vanguard 2070 or Fidelity 2070. The final step involves setting up automatic transfers of even just fifty dollars monthly, which Sethi calls more valuable than anything.
How To Invest Your First $10,000
At the $10,000 level, Sethi recommends first maximizing any employer 401(k) match, which he describes as free money people often ignore.
“If you don’t do this, you’re basically saying, ‘No, thank you, I don’t like free money,'” said Sethi. For someone earning $100,000 with a 3% company match, contributing 3% doubles contributions to $6,000 per year.
After securing the 401(k) match, Sethi advised maxing out Roth IRA contributions and investing in target date or low-cost index funds. Once these accounts are funded and automated, Sethi suggested using a conscious spending plan to redirect extra money into investments automatically. Ramit recommended creating rules for unexpected money, such as directing 75% of windfalls like tax refunds toward investments directly.
How To Invest Your First $1,000,000
When investing at the $1 million level, Sethi reported that the vast majority of his money goes into boring index funds everyone can access.
“If you think wealthy people have access to secret investments that get them ten times the returns, you’re wrong,” Sethi said emphatically.
While wealthy individuals do access different investments, Sethi notes these alternatives often carry excessive fees, poor liquidity, and disappointing returns.
Sethi allocates approximately 5% to alternative investments like angel investing in startups, which he calls “fun money,” expecting no returns. He admitted losing money on most angel investments and has essentially stopped pursuing them in favor of S&P 500 index funds.
At this level, tax optimization strategies become valuable, including tax-loss harvesting, backdoor Roth contributions, and estate planning, generating significant savings.
The Mindset Shift Across Investment Levels
The psychological approach to money transforms dramatically as your investment amounts grow from thousands to hundreds of thousands to millions.
At $1,000, you’re simply getting started and building fundamental habits, similar to establishing a gym routine where showing up counts. Sethi emphasizes that doing anything at this stage counts as success rather than obsessing over perfect optimization or ideal investment opportunities.
At $10,000, investors cement their habits while learning to diversify and automate financial systems more comprehensively across multiple accounts.
By the $1 million level, you’re managing risk strategically, thinking about legacy, and identifying who you can help with your accumulated wealth.
“Too many of you are playing small for your entire lives when it comes to money,” said Sethi, urging people toward systematic elevation.
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