You did it. You budgeted and saved some money. Maybe you stopped buying coffee every morning or you started making dinner at home instead of ordering takeout.
No matter how you went about saving money, you now have extra money. And you might be thinking, “I have $1,000! What do I do with it?”
You might want to boost your finances, and if that’s the case, where do you start? You can start putting the funds into a bank account, invest to earn a return or start paying down your debt. You can use the money to invest in your personal well-being or any combination of the above!
The choice is up to you. It all depends on where you are with your finances and what your financial goals are. No matter what, here’s some additional guidance to help you make the best use of $1,000!
Table of Contents
Open a bank account
Opening a bank account is a great way to keep your money safe. Plus, the concept of out of sight, out of mind might be helpful when it comes to finances, too.
As tempting as it might be to hold on to the cash in your top drawer for a rainy day, keeping the extra cash in an accessible place might increase your risk of spending it. Consider opening a bank account to protect your coins, track your spending, and earn rewards.
MoneyLion offers RoarMoney banking accounts which grant you access to a ton of perks. This is a great way to continue to get benefits from your own money. RoarMoney offers mobile banking and debit card rewards on everyday purchases through the MoneyLion app.
How cool would it be to get your paycheck early? RoarMoney allows account holders who have enabled direct deposits to gain access to their paycheck up to two days early!
There is also price protection with MoneyLion. If you find a lower price on eligible purchases within 90 days of your purchase date, you can get a refund for the difference. There are also no hidden fees, plenty of rewards, access to online banking, and so much more! These are all great ways to keep your funds safe and let your money work for you.
Speaking of letting your money work for you, smart investments are a great way to make your money work hard. Consider opening a Managed Investment Account from MoneyLion. You can invest any amount of money at any point in time, and it only takes a few minutes to sign up!
Do you see yourself as more aggressive or conservative when it comes to your portfolio? Either way, you’ll get to choose your comfort level when it comes to investing. MoneyLion will use this information to build a balanced portfolio based on your preferences.
Investing can feel intimidating to some people, but with MoneyLion, you’ll feel confident and self-assured thanks to our informative and customizable investing process. This option is also excellent for beginners as there aren’t any account minimums, and you can earn more than you would with a traditional savings account.
Plus, with the auto-invest feature, you can automate your investment contributions which will take the hassle out of you having to remember to make transfers. Choose from weekly, bi-weekly, or monthly transfers from your bank account to your fully-managed investment account.
Pay down your debt
Do you feel like you’ve accumulated a lot of debt in the past year? If so, you’re not alone. According to Experian, there was a 6% increase in consumer debt over the last year.
Even if you have more than $1,000 in debt, the extra funds can still be a great way to start paying down your debt. Paying down debt requires patience and consistency. Start by making a plan that will work well for you.
Taking measures like creating a budget or seeking out interest-free cash advances can be the best first step on your path to paying off debt. Being debt-free is attainable and the extra funds might be the jumpstart you need. Just don’t forget to keep some cash on hand if life happens and you need to cover an unexpected expense!
Build your credit
As a result of the pandemic, many lost their jobs and found themselves in financial binds. This bind caused many people to either depend on credit cards or even forgo some of their payments altogether.
Now that the smoke has cleared and you have even managed to save some money, there’s no better time to start building your credit again. Your credit score is a big part of your overall financial health. It will help you gain access to loans for automobiles, housing, and more.
If you have a high usage percentage or have even missed some payments, your score can take a serious hit. But don’t worry! There are ways to raise your score again. There are also loans that can help you build your credit.
A Credit Builder Loan from MoneyLion is an easy way to start building or repairing your credit. You could get a credit builder loan up to $1,000 while having your on-time payments reported to all three major credit bureaus, which will help you improve your score with ease.
Don’t worry about having a perfect credit score before applying. At MoneyLion, we know that a desire to rebuild your credit score is why you’re here, so we understand. Just make sure you have a steady source of income and proof of the deposits.
Using that extra $1,000 to take out a loan and improve your credit score is a wise idea. And with MoneyLion, a portion of that loan will be held in an interest-earning Credit Reserve Account.
Once the loan is paid in full, the money in the Credit Reserve Account will be yours to keep. Plus, you will increase your credit score in the process! Seems simple enough, right? That’s because it is! All you have to do is take the first step and apply for our Credit Builder Loan.
Of course, money can set you up for success and put you on track to achieving your financial goals, but it is also important to have some fun, too. Consider using your extra $1,000 to improve yourself.
Maybe there is something on your to-do lists that costs a little more than your budget allows or maybe you’ve just been putting it off altogether. Consider using your new savings to improve your future and knock some items off the to-do list that you’ve been pushing aside.
Take an online course
Online courses are a great way to sharpen your current skills or gain some new ones. They’re available for all skill levels, interests, and budgets. Look for courses on Udemy, LinkedIn Learning, or Masterclass.
Courses from the aforementioned companies are often on sale with hefty discounts. We’ve seen courses in marketing, design, IT, and more for under $100. Even Harvard is offering a free game development course. Yep, Harvard!
If you find a course that is over your budget but it is in your field of interest, check with your employer to see if they will subsidize a portion of the course or the entire course. Perhaps you’ll find a course that helps you discover a new career path or side hustle.
Create an emergency fund
Did you know you should have money that covers three to six months of expenses set aside in an emergency fund? According to experts, that’s the best way to set yourself up for success in case something unexpected happens.
Though you might be tempted to spend the extra $1,000 that you saved up, you don’t have to rush. Consider holding onto the funds and adding them to an emergency fund. Being prepared is a great way to invest in yourself and your future.
Treat yourself to a vacation
You have your emergency fund, and you’ve invested in yourself financially. Maybe there isn’t anything left to do but treat yourself to a vacation. Whether it’s a solo trip, a staycation, or travels with a significant other, you can make your $1,000 stretch very far.
Look for flights using budget-friendly sites and seek out non-traditional lodging options to save even more. Depending on how soon you want to take the vacation or how far away you want to go, you can plan a great trip and even have money to spare!
Remember that a vacation is a great way to refocus and re-energize yourself. That is definitely worth the money you will spend!
So Many Options, So Little Time
We have given you a lot of options on how to spend, save, and invest in your $1,000 and you’re probably wondering how you’re supposed to do them all. Choose what option is best for you right now and then focus on saving up the funds again.
The important thing is to be mindful of how you spend your extra $1,000. If you find yourself still thinking about the best way to spend your money, consider using RoarMoney by MoneyLion in the meantime. That way, your money will be put away and you’ll get rewards for everyday purchases until you decide on your next step!
Frequently Asked Questions
What should I invest $1,000 in?
It is important to discuss your investments plans and goals with an expert. There are many ways to invest your money, but you have to find what works for you. Make it personalized and simple with MoneyLion.
How can I make money with 1,000 dollars?
How can I save $1,000 fast?
You can create an aggressive savings plan or even look into finding a second source of income to put towards saving. You can even save while you spend. A cashback debit card is a great way to continue your day-to-day spending while also getting cash back and investing it.