Having $1000 in the bank is a milestone accomplishment – congratulations!
You’ve done a great job saving, but unfortunately money sitting in a checking account doesn’t accrue much – if any – interest. That pretty much means the savings that you worked so hard to build are just sitting there, tempting you to spend.
Instead it’s time to put your money to work for you. Kansas City Credit Union can help you use your savings to make more money!
1. Start Investing! If you can’t afford full shares in the stocks you’re interested in, several apps make stock investments simpler and allow you to purchase fractional (partial) shares. Check out apps like Stash, which are great for beginners, or take a peek at this list of top investment apps!
2. Set Up An Emergency Fund. Let’s face it – emergencies happen. Of course, we rarely plan for them. Car troubles, health concerns, unexpected unemployment… the list goes on. Unfortunately there are many problems we can’t predict. While you shouldn’t panic about unforeseen turns of events, setting up an emergency fund can help you prepare for them. Put that $1,000 in savings and let it start accruing interest that will grow your emergency fund. Many people consider it wise to save 3-6 months’ worth of expenses just in case – hopefully, your $1000 will go a long ways towards filling that amount.
3. Invest In Life Insurance. We know it’s the thing no one wants to talk about or even think about. As much as we’d like to avoid discussing life insurance, it’s essential to have savings in place for your family or loved ones should something happen. Now is the time to start investing money into those funds.
4. Save on Bank Fees. Having money in the bank will save you on bank fees like overdraft, insufficient funds or even potentially monthly maintenance fees. Yes, $1000 in the bank means you don’t have to worry about an overdraw fee, but that doesn’t mean you should go crazy on a spending spree expecting your $1,000 to have your back. Budgeting is still a wise path.
5. Save For a House Down Payment. Use that $1,000 to start saving for a house down payment. Consider your options on a savings account specifically for your house down payment. This way, your money can accrue interest and grow into a nice little nest egg. The best part? You can save on interest and negotiate a lower mortgage with a bigger house down payment!
6. Pay Off Debt. While you may be proud of saving that $1,000 – as you should be, you should also consider buckling down on that unpaid debt you have hanging over your head. Paying off debt doesn’t seem like you’re saving money – it feels a lot like spending money! However, paying off your debt now will save you money in the long run because the longer that debt goes unpaid, the more interest it accrues.
7. Refinance Your Mortgage. Get that pot off the back burner and start seriously putting down some funds. Just like paying off debt, paying more now will diminish how much you have to pay in the long run. Read more about paying off your mortgage faster!
8. Raise Your Credit Scores. This is a great time to take out a new credit card or to start new car payments. While your savings and score will initially take a hit, building credit off of a new set of payments will enable you to pursue other opportunities in the future, like buying a house. Building your credit is a great way to save money in the future by potentially receiving better offers or interest rates when spending.
9. Save For Retirement. All your dreams of traveling and experiencing new things? Start saving money now because interest rates mean a little now equals more later. Put your $1,000 into a retirement program or at least a savings fund so that you can do all the things you’re dreaming of!
You have $1,000 and a lot of options! Now what? For financial advice tailored for your needs, contact Kansas City Credit Union today! We’d love nothing more than to guide you on your path to financial freedom!