These days $500 is quite a bit of money considering many Americans don’t have enough in their emergency funds to cover a $400 expense. So imagine what you could do if you suddenly found yourself in the possession of an extra $1,000 to spend or use on anything that you desired. The possibilities are endless… but here are some ways it could certainly make your life easier.
1.) Pay Off Lingering Debts
When is the last time you have had honest look at your current financial picture? If it’s within the past 30 days then I’ll bet you have some debts that you’d like to take care of. An extra $1,000 dollars may not seem like that much in the great scheme of things —but it can certainly go a long way when it’s divided up.
You can use those funds to pay off all of or a portion of those pesky accounts that you still owe money for but haven’t quite found the extra funds to such as ;
- Credit card payments
- Recent collections accounts
- Interest-free student loan payments
- Outstanding medical invoices
- Late car notes
2.) Get Caught Up On Bills
Recently I came across an article on Business Insider that noted how some who are making six figures are barely making ends meet between paychecks. That goes to show —sometimes, it’s not how much you have but what you do with it. A negative relationship with money can lead to a bad decision-making spiral.
As bills come and go over the days and months… the last thing bill collectors want to hear is that you don’t have the money. So if you find yourself unable to meet your obligations and constantly exceed the due dates… then an extra grand may be just what you need to get back in good standing and make life easier.
3.) Create an Emergency Fund
Speaking of emergency funds—we’ve all had those times where an unexpected expense popped up like a tire blowout, vehicle repair, or family emergency at the most inopportune times. An emergency fund can be just the thing to make situations like these bearable versus the stress and/or worry that usually surfaces. Most banks also offer a decent annual percentage yield for parking your fund with their institution—that’s making your money work for you.
4.) Upgrade Your Work Wardrobe
As pandemic federal unemployment is coming to a close across the country… many people are being required to take on work that they wouldn’t have ordinarily chosen. Sometimes that requires a complete wardrobe overhaul. There’s a saying that rings true “dress the part” and in the current competitive jobs environment— a new set of stitches could certainly work in your favor.
5.) Take a New Class or Certification
As people recover from what may have been one of their most difficult financial years in decades — the skills you used to have may not cut it anymore. In order to make a swift recovery a new degree, skillset, or area of expertise may be just the ticket. Digital classes or online certifications to make life easier, are simpler than ever to obtain. If you’re reaching for the stars—or at least a $100,000 salary then you may want to go for one of these fields…
- Digital Marketing Expert
- Cryptocurrency Programmer
- Freelance Writer
- Wall Street Analyst
- Investment Banker
- Computer Technician
6.) Start an Investment Account
Passive income is a great way to increase your earnings over the years and proven to be one of the best ways to create wealth. Due to the explosion of cryptocurrency lately— many banks and other types of financial entities are making it easier than ever to gain access. Also, more traditional institutions like Vanguard are offering the opportunity to invest in their hallmark ETF’ funds, such as Vanguard Target Date, Vanguard Star, VTSAX, and VTSMX with low entry fees of $1,000 to $3,000.
7.) Make A Charitable Donation
Charities are one of those things that not only help people around the world—they are one of those things that allow you to make a real difference and feel good while doing so. Although they may not always appear in the more traditional sense, such as a 501c or 503b—donations are still beneficial and come with many tax benefits as well to decrease your burden and make life easier.
So the next time you are thinking of discarding those old clothes, have some extra money around, need to reduce your tax burden for the year, or just want to do a good deed –consider making a donation. And for the record, crowd-sharing sites like GoFundMe. Indiegogo and Kickstarter will still provide you with incentives.