A thousand dollars might not be a lot to a millionaire, but for most of us it’s a lot of money. You can go many routes with it!
So what can we do with this money? Here are 7 smart things you can do today with $1,000.
1. Pay Off Debt
Number one on the list is paying off debt. After all, that’s what we’re all about here at Fineedom!
If you’re carrying debt, such as credit cards which usually have high interest rates, that’s eating away money from your savings. The more debt you pay off, the more power you have over controlling your money.
Paying off $1,000 in debt can make a drastic change in your monthly finances – more savings per month, start that home project you’ve been putting off, or be able to start investing in stocks from the money that would’ve gone towards the debt.
2. Invest in Companies
Investing is one of the smartest things you can do with your money. It gives your money a chance to grow. Now, investing isn’t as hard or scary as many people think. It’s not something only the traders on Wall Street can do – anyone can do it with as little as $10. With $1,000, you have quite the buying power.
These days you have many options to invest in companies – you can buy individual shares of a company, Index Fund, or ETF via a broker (Fidelity, Charles Schwab, TD Ameritrade), or go with one of the newer ways – Robinhood or Betterment.
Make sure you research the company you want to invest in to bring some confidence in your decision, but if you don’t want to go through that hassle or have the time, you can simply invest in an Index Fund. An Index Fund is a basket of shares of the top companies in the market currently and is a diversified investment.
3. Create an Emergency Fund
Having an emergency fund is one of the most financially responsible things you should do with extra money. Common advice is to save 6+ months of expenses, in case you lose your job or need to take a break.
A thousand dollars might not cover 6+ months for most people, but it’s still a great start. Having an emergency fund can relieve a lot of financial stress off your back, especially during a hard time as many are facing today with the COVID pandemic.
And one of the best parts about an emergency fund is that you can snowball it into a bigger size, giving you more confidence along the way.
4. Start a Small Business
Now may be the best time to start a small business! With many people working from home and saving tons of time from not commuting, that time can be used to start that side business you’ve been thinking of for a while.
Small business ideas can range from a local gutter-cleaning company to an online blog.
Both of these examples can be started with $1,000. To start a blog, all you need is a domain name ($10/year) and a hosting provider ($7-$20/month) – the rest is just spending time on it and getting creative with it to provide people with content they want to see.
5. Renovate Your Home
Another thing you can do with extra time from work-from-home lifestyle is renovate your house! Painting a room a new color, installing new lights, or upgrading your front patio – you can do a lot.
Starting some DIY home projects can be a great break from work. In a way, it’s a type of meditation that can give you some mental clarity as well. And depending on the project, most can be done for under $1,000. You might be able to do more than one!
6. Get a New Certificate
Improving your skills and education is always a great idea. You can take online courses for any field these days – coding, financial analysis, web development, graphic design – the list is endless. Adding a certificate under your belt can help boost your career and lead to more income.
Especially if you’re in college or just graduated, these can help improve your candidacy and make you stand out from your competition!
7. Save For Your Kids’ College Education
Let’s face it, saving for college is hard. But the sooner you start, the better off you’ll be. Starting to save early for your kids’ education is a great idea, and one you can start with $1,000.
And one of the best ways to go about it is to start a 529 college savings plan. Funds in this account will grow on a tax-deferred basis so it’s a great savings vehicle!