Got $1,000 in the Bank? Here Are 8 Things You Need to Do Next
So, you’ve reached a milestone — $1,000 of long-term savings, over and above your emergency fund. Now that you have a little extra cash, consider making it work as hard for you as you do for it.
Keep in mind that over time, what you earn on your savings will make a huge difference. For example, invest $1,000 every year, earn 5% on it for 30 years, and you’ll end up with a nice nest egg: about $70,000.
But boost that return from 5% to 15%, and you’ll end up with a bit more than $500,000! In short, while it doesn’t pay to gamble, sound investing over time can literally change your life.
Here are some ways to find more money to invest, as well as ideas to increase the returns on your existing long-term savings.
1. Invest in Amazon, Apple or Tesla for just $1
Investing in a better future for you and your family is a great idea. But, taking the leap to start investing in the market can be a tough one. There’s a lot of information out there, and it can be hard to figure out where to start.
But an investing app called Stash is working to change that.
With Stash, it’s easy to get started investing in the stock market. In addition to an easy-to-use interface, Stash also allows you to buy fractional shares. With this approach, you don’t need to have the money to buy an entire share of an expensive stock. Instead, you can invest in a partial share, with as little as $1, and still take advantage of growth potential over time.
2. Get thousands more to invest by refinancing
Take advantage of historically low interest rates, and refinance your mortgage!
Companies like Rocket Mortgage make the process quick and easy. Rocket Mortgage was rated highest in customer satisfaction by J.D. Power, and there are simple calculators on its site that can tell you exactly how much you’ll save by refinancing.
If you’re currently paying 4.75% on a 30-year, $300,000 mortgage, refinancing to 2.75% could mean saving $340 every month and thousands over the life of your loan. That puts an extra $1,020 in your pocket every three months!
Spend a few minutes on Rocket Mortgage and see what you can save. And do it soon: Interest rates are going up.
Compare refinancing rates and lower your payment today at Rocket Mortgage.
3. Save hundreds on home insurance
Would you rather invest your money for yourself or send it to an insurance company?
Like shopping for your car insurance, you might also find hundreds a year to invest by looking for less expensive home insurance. Lemonade is a company offering rates starting at just $25 a month.
Tip: When comparing rates, make sure you have the coverage you need, but not more than you need. Now that you have $1,000 in the bank, consider increasing your deductible. The more you’re willing to pay out of pocket, the more you’re likely to save. Even if you don’t change companies, raising your deductible to $1,000 could save you 10% or more.
Just answer a few questions about your home to get started.
4. Crush your credit card debt instantly
One way to get rid of high-interest credit card debt is to get a lower-rate personal loan.
A website like Credible can help you find a personal loan that’s right for you, helping you compare rates and terms quickly and easily.
Once you have your personal loan, you can pay off the credit cards. With a lower rate and one simple monthly payment, you can save on interest, get rid of your debt faster and have more money to invest. Warning: Use a debt consolidation to pay off debt, not create more.
Check your personal loan rate online in less than two minutes with Credible.
5. Find an extra $440 in your car policy
You probably try to save a few pennies on milk or gas by shopping around. But you could be saving hundreds by shopping the big expenses, like car insurance.
And here’s the good news: It’s never been faster or easier.
With a free website called The Zebra, you can check rates from multiple insurance providers — and save up to $440 a year. That’s more money you can stop handing to insurance companies and start using to save and invest.
All you have to do is answer a few basic questions. Then you choose the best deal, and you’re done. It’s really that simple. Plus, it’s free to use, and you can do it all right now on your phone in just five minutes.
Try it yourself, and find how much you can save with The Zebra.
6. Invest in real estate with as little as $10
You don’t need thousands of dollars, let alone millions, to invest in real estate.
If you can’t afford to buy a property just yet, you can still invest in real estate using a platform like Fundrise. With Fundrise, you can get into high-quality real estate projects with as little as $10.
Real estate can be one way to diversify your assets beyond stocks and bonds. Over time, real estate has the potential to provide good returns, and it’s possible that a portion of your $1,000 could go to work for you in real estate — even if you can’t buy an investment property outright.
If you’re ready to become a real estate investor, get started now.
7. Boost your credit score, for free
One of the best ways to save money on various financial products and services is to maintain a good credit score. You can get a handle on what’s going on with your credit report and your score by signing up with a free consumer credit score website like Credit Sesame.
Credit Sesame can analyze your current financial situation and suggest actions you can take to improve your credit score. With these practical ideas, you can get free help improving your score so that you can save money on your next mortgage or car loan. In some states, you can even save money on car insurance with a lower credit score.
Get your free credit score and analysis at Credit Sesame.
8. Earn up to 50% cash back every time you shop
One way to get money back on your regular purchases is to sign up for a rebate and cash-back program like Rakuten.
Every time you spend money, you get some cash back. This cash can be deposited in your bank account, allowing you to grow your balance even more. Not only that, but you can receive coupons and discounts, just by doing your regular shopping. These types of sites work best when you only spend on planned purchases.
As a bonus for joining Rakuten, you’ll earn $30 when you sign up using our link and spend at least $30 shopping online through Rakuten within the first 90 days. Start earning cash back and claim a free $30 bonus today.
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Steve Hansen, Vice President, Underwriting, Architects & Engineers/Contractors Professional Liability, Tokio Marine HCC – Cyber & Professional Lines Group,…