Congrats! Now that you’ve passed this first milestone, you’re truly on your way toward financial success and freedom. While $1,000 in your bank account may not seem like a lot of money, for many, it’s the first great steppingstone in your path to generating sustainable wealth.
Now that you’ve made it to the first mark, it’s time to start thinking about what lies ahead. This starts with answering one vital question: what are your financial goals?
Maybe you’re looking to save for a new car or a house. Perhaps you’re looking into starting your investment portfolio. You may even be looking as far ahead as your retirement.
Regardless of the endgame, it’s crucial to not let that cushion you’ve built into your checking account go to waste. To aid you in these important first steps, we here at Financial Professional have put together some ways to most effectively and efficiently use that $1,000 sitting in your bank account.
Before we continue, Financial Professional wants to remind you that all materials in this article are educational in nature. This article is not meant to be interpreted as investment advice. Always consider your personal situation – and the help of a licensed financial professional – when making any investment decisions.
Look to Invest!
Investing is a great way to help your money make money. The stock market may seem like a scary place, especially if you’re unfamiliar with it. However, it presents you with many opportunities to grow your money.
There are dozens of industries and hundreds of companies in need of investors. Furthermore, it’s important to create a diverse portfolio to minimize your financial risks. Why not dabble in a few different options and see what works for you?
Although all stocks come with a form of risk, all of these industries share a common goal: they want to make money! So, if you’re new to the investing scene, consider an investing app or website to help you make financial decisions. With a little cash and enough practice, these can put on the same playing field as professional brokers.
What Exactly Should You Be Investing In?
There are various financial industries that bring high reward – and high risk. The stock market tends to be very volatile, and it can prove to be very stressful to the casual investor. Instead of riding that rollercoaster, why not sit back and ride the wave of real estate?
Real estate is typically dog-eared for wealthy investors, but there are companies that will invest your money into a variety of commercial real estate properties across a well-diversified portfolio. These focus specifically on apartment complexes that the company itself owned, so you know the company has a stake in your money as well – some only require as little as $500 to get started.
Compared to the stock market, which averages an annual return around 7%, some of these real estate investment trusts have a historical average annual return of 17-18%.
While no company can guarantee an exact return on your investment, that $1,000 in your bank account is much safer in the hands of a company well-versed in their market.
Think to the Future
Have you ever thought about what you can leave behind after your time us up in this world? It’s a dreadful thought, but one that all smart investors should consider for the sake of their families. Yes, I’m talking about life insurance.
Obtaining the best life insurance policy is crucial to provide for your family or other loved ones after you past. Your checking account won’t last forever, so finding the most effective financial plan is essential to see you to your end and continue your legacy through your family.
Bestow is a great company to look into if you haven’t already. With Bestow, you can potentially leave behind up to a one-million-dollar policy for as low as $5/month. The application process is super quick and easy and allows applicants to get a life insurance quite without a medical exam – or even leaving the house. If this piques your interest, click here to get a free online quote from Bestow.
Save Your Money
Now that you finally have $1,000 in your bank account, it’s time to spend smarter and save money in the process. One thing that can really hinder your progress is lousy credit card debt. While most credit card companies will do their best to rip you off with insanely high interest rates, there are ways to curb this issue.
A company called Fiona can help you pay your credit debt off tomorrow. Yes, tomorrow. Here’s how it works:
Fiona matches all of your current credit card debt to a low-interest loan. You use this loan to pay off all of your outstanding balances immediately. Then, you owe only your low-interest debt to Fiona.
How is this beneficial?
Firstly, it eliminates the problem of keeping track of multiple sources of credit card debt and consolidates all of your bills into one. Secondly, with an interest rate lower than many credit cards, you can pay off your debt quicker and ultimately cheaper. Thirdly, for those strapped for cash, there is no payment required for the first month, so you can take a breather from all of those bills.
Unlike many other credit institutions, Fiona won’t make you wait in line or call the bank to get started. You can easily check online to see if you qualify for a loan. These loans range from $1,000 to $100,000 and have terms from 24 to 84 months (
Fiona offers loans anywhere from $1,000 to $100,000 with terms from 24 to 84 months (2 to 7 years).
Now that you have finally found some financial footing (did we mention you finally have $1,000 in your bank account?), it’s important that you don’t lose it to overwhelming credit card debt.
Who Doesn’t Love Cash Back?
If you’re into cashback options (and I hope you are), a debit card issued by Aspiration offers customers up to 10% cashback on every single purchase.
Going to the grocery store? Get cashback.
Going to fill up your tank? Get cash back.
Since you were going to purchase these things regardless, it is only smart that you get some of your money returned back to you and save money in the process.
For those who are environmentally conscious in their spending decisions, Aspiration is super eco-friendly. In fact, with every purchase you make, the company vows to plant a tree! In addition, the company grants extra cashback for spending at socially conscious businesses.
Signing up for a debit card with Aspiration is super easy and takes a little under five minutes. Plus, you save money and the environment at the same time!
Be Smart with Your Money!
That $1,000 in the bank may start to look mighty temping. There’s that bike you’ve always wanted, and maybe you need a new pair of pants, and there’s all of that online shopping to be done…
It may be difficult to rid yourself of these temptations, especially if it’s been awhile since you’ve seen that much money in your checking account. However, you need to stay focused on your goals and your plans to achieve them if you hope to have a solid financial foundation. This starts with making smarter financial decisions.
The key to these smarter decisions are simple: invest, save, and plan for the future! In doing so, you will significantly benefit yourself on your path to becoming wealthy.
As famous writer William A. Ward once said, “Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give.”