Apr 25, 2024
Making the Most of a Grand: Creative Ways to Spend $1,000
Reading time: 7 minutes
Money, though often elusive, can present itself unexpectedly—a tax refund, a bonus from work, a generous gift or even savings from switching wireless providers. It's true! Families who switch to PureTalk save almost $1,000 a year.
What would you do with an extra grand?
How best to utilize this extra money?
Regardless of its origin, the question inevitably arises: how best to utilize this windfall? With $1,000 in hand, the possibilities seem both tantalizing and daunting.
Do you spend money on a luxury item, invest for the future (and stash it in a retirement account), upgrade some aspect of your house, or perhaps indulge in a series of small delights?
Or maybe you should put it toward or establish an emergency fund, pay down credit card debt, pay down student loan debt, or put it in your back account and get in the habit of saving money.
What to do, what to do!
The crux of this post...
In this post, PureTalk will explore a variety of ways an individual or family could spend the $1,000 it saves with our premium service. There are lots of fun ways and options to consider.
Join us as we delve into the art of making the most of a grand, exploring creative avenues that not only make your money work for you but also bring joy and fulfillment to your life.
Here are 10 ways to spend $1,000!
Beef up your bank account
It's risky to go through life without available emergency money or extra cash. Most of us need to have about six to nine months' worth of living expenses tucked away in a bank account and available in case some unthinkable event, such as a job loss or costly medical expense, happens.
If your bank account is usually close to empty, putting your $1,000 in it can establish a buffer between you and overdraft fees.
You can do no wrong by putting the money in a bank account and letting it sit there for a while and let it collect interest – and in the meantime, just keep it there until you do need it.
Even better, of course, is if you keep adding to that emergency fund.
Establish an emergency fund
About one-third of Americans haven't started an emergency fund and, as a result, don't have sufficient savings to pay for unexpected expenses, according to a survey by the Consumer Federation of America and American Savings Education Council.
Ideally, your emergency fund should have enough to cover at least six months of expenses.
Pay down credit card debt and/or student loan debt
If you're carrying significant debt, especially high-interest rate debt, such as what credit cards typically charge, you should make paying that off a priority. (If you don't have high-interest rate debt, consider making an extra payment or two on your mortgage or on student loan debt.)
Whether you owe $2,000 or $25,000, applying $1,000 to reducing your debt can greatly improve your financial health.
Sock it in a retirement account
When you've got some extra money, one smart move is to put it in an IRA. A traditional IRA contribution will shrink your taxable income, while a Roth IRA offers tax-free withdrawals in retirement.
Call in an expert
If you're not well versed in the area of personal finance and retirement accounts, consider working with a certified financial planner to help put you on the right track.
It's never too soon to put retirement savings plans in place.
Have experiences
Studies have shown that spending money on experiences instead of material things tends to deliver sense of well-being.
Experiences, after all, create memories that can be savored for a long time.
Travel...
Traveling is one such way to rack up experiences. You might take a road trip cross country with your kids or visit Europe for a long weekend. (Three or four nights in London sure sounds good!)
Take lessons or watch your team...
But you might also spend your $1,000 on music or golf lessons or on season tickets to your favorite baseball team.
How you go about spending money in this instance is really up to you. And if there's any money left, maybe put it toward gear to wear at your favorite team's games!
Invest in yourself
Gain skills
You could take the extra money and invest it in yourself, improving skills and other things so you can earn more money at a new full time job.
Improve your health
Or maybe invest it in improving your health by hiring a personal trainer for a few sessions.
Soup up your money smarts!
One way to really maximize your $1,000 windfall is to spend it on personal finance classes and learn about investing. Think how much wiser you'd be in the long run the next time extra cash fell in your lap!
Invest in someone you love
If your child or grandchild has a strong enough income to qualify for a mortgage but is low on savings, consider kicking in a portion of the down payment.
Or if they're off to college, consider getting them the new laptop they need or contribute to their expenses or tuition.
Or, if college is still a long way off, tuck the money aside for the future. Funding a 529 College Savings Account Over the course of a few years is a smart strategy to set aside money for future college expenses.
Have critical documents drawn up
Most of us need to have several vitally important documents prepared and ready. These include a will, a power of attorney, a living will, and a health-care proxy.
Hire a lawyer to help you with these and any other estate-planning matters, such as perhaps setting up a trust.
It might sound boring, but these are smart ways to spend that extra grand.
So, how will you spend that $1,000 you saved by switching to PureTalk?
Remember, how you choose to spend your $1,000 ultimately depends on your personal priorities, values, and goals.
Whether you opt for practical investments or indulgent treats, make sure to consider what will bring you the most satisfaction and fulfillment in the long run.
Have you made the switch to PureTalk yet? Don't wait a minute more!
Get the same dependable 5G network at HALF the cost of the big three and enjoy savings of almost $1,000 a year!
Posted 1 week ago