The suggestions of Google Ads for a $1k budget in 2026 on a new project/campaign are, frankly, ridiculous. Awful advice.
$1k will go and regardless of whether you profit or not (which is unlikely with a new campaign as it takes time to fine tune), and even worse, the data set you have from such a small volume of impressions/clicks/conversions will be WORTHLESS. You won't be able to accurately draw any conclusions. The data set will be completely meaningless - fact.
If anyone tells you otherwise, they're either ill-educated, or lying.