5 Money Moves to Make with $1,000 in Extra Cash
Any amount of savings in your bank account puts you in a more comfortable financial situation. But why let that money sit in your account? There are more productive ways to utilize your savings. Making moves with your money can help you increase its. You can search online right now for different ways to smartly manage your savings.
Having a small cushion of savings can help you set and act on long term financial goals that’ll grow your money. If you’re looking to make the most of your current dollars, search online to discover smart money strategies .
Here are five ways to grow the money sitting in your bank account.
1. Buy A Low-Cost Stock
You don’t have to be a millionaire to invest in companies like Google, Apple, or Uber. Consider spending just $5 on a stock investment. You could get an annual return of seven percent, adjusted for inflation, on a stock market investment.
For investor newbies, consider starting with a banking program like Stash. It helps you invest your money into thousands of stocks and funds without add-on trading commissions. The best part is you can invest any dollar amount you’re comfortable with.
You can pay just $1 per month on a beginner Stash plan. This gives you a personal investment account that teaches you the basics of investing. You’ll get a digital bank account, debit card that earns stock, and a free one month trial.
2. Invest In Real Estate
Not everyone has the money for a down payment on property. Luckily, you don’t have to spend thousands of dollars to invest in real estate anymore. There’s a platform called DiversityFund that allows you to be an investor in newly renovated properties.
DiversityFund is a business that buys, renovates and manages buildings with the highest potential. Money from rent is reinvested to continue making new renovations and property purchases. Once the fund is ready to sell the property, DiversityFund splits any profits among investors.
This is a way for low-risk investors to diversify their assets and avoid spending lots of money. All it takes is a minimum investment of $500 and DiversityFund will professionally manage your account to help make the most on your return.
3. Buy A Life Insurance Plan
Another way to guarantee a healthy financial future is by investing in a life insurance plan. When you pass away, your loved ones can receive a lump sum payment that will help them financially. This type of investment is especially smart when you’re still young and healthy because you can find a monthly premium for as low as $16.
Life insurance plans are customizable to meet your desired coverage and budget. Of course, you can also invest in a life insurance plan that you can benefit from while you’re still alive. Some give you the option of adding cash value to your plan.
Part of your premium is allocated towards a cash value savings component that earns interest, increasing the value over time. It’s a living benefit that policyholders can take advantage of when they want to make a down payment on a house, retirement savings, or even put towards paying your policy premium.
4. Get Cash Back From Credit Cards
If you’re frequently pulling out your credit card to shop for daily expenses, then you might as well be using a credit card that will give you something back. A credit card with cash back rewards can do just that. As long as you’re paying off the card before it gains interest, you can be taking advantage of cash back and using it towards purchases.
The rewards you gain from the card can be worth paying an annual fee with this type of benefit. Alternatively, you could sign up for a debit card with Aspiration. It’s an app that gives you up to five percent back on purchases after linking your card to your bank account.
5. Lower Your Monthly Bills
You’re probably paying for a number of different services every month without thinking twice. But it could be worth reviewing exactly how much money you’re spending and see if there’s room to save.
Between phone bills, cable costs, insurance policies and beyond, you can potentially lower your monthly utilities cost. See if you can get on a cheaper phone plan or cancel some of the unused channels you’re paying for on cable.
An unexpected cost you might not think to cancel is your car insurance. Shop for new options every six months to find a lower premium. The free website Savvy can help you find car insurance plans with the same coverage for a better price. This will allow you to save money and not lose any coverage in the process.
Look For More Financial Options Online
Having some extra savings in your bank account is a nice safety cushion to have. There are easy and low risk ways to invest your money. Not only can you potentially grow your money, but you can diversify your portfolio and cover your bases across a number of investments.
Search online for more ways to stretch your dollars. You can find some affordable services to help manage your banking, or search for simple ways to lower your monthly billing costs.