So you’ve been working your behind off and finally managed to save up a little cash. Now what?
While it feels great to see $1,000 in your bank account, you shouldn’t just let it sit there.
Here are six ways to make your cash grow and crush your financial goals.
1. Invest like a millionaire (even if you’re not one yet)
The world’s wealthiest all own big chunks of successful companies. But you need a lot more than $1,000 to get started, right?
In reality, you need a lot less. One popular investing app will let you buy fractions of shares with your spare change. That means you can own a stake in big firms like Apple or Google without having to pay hundreds or thousands for a full share.
Simply link your account to your debit or credit card, and the app will round up your day-to-day purchases to the nearest dollar and invest that change in a premade portfolio of your choice.
You can even get an extra $10 added to your account when you make your first investment.
2. Spend a few bucks to potentially leave your family $1.5 million
The past year has forced Americans to confront a lot of questions they’d rather not think about. Let’s be honest: $1,000 is a decent chunk of change, but it’s not enough to look after your family if something ever happened to you.
Thankfully, it’s more than enough to ensure your loved ones are set for life, as long as you take one simple step today.
Life insurance may seem like a pain to get, but the better companies out there make it simple. You can apply online and get a quote in seconds — and be enrolled in mere minutes if approved.
You get to choose whether you want $50,000 in coverage or $1.5 million, and whether your policy needs to last for 10 years or as much as 30 years. Best of all, term life insurance premiums start as low as $10 a month.
The peace of mind of taking care of your family, for less than the cost of a streaming service. That’s a pretty good deal.
3. Check your credit score ASAP
Now that you’ve got a cushion of cash, it’s time to get your credit score under control. Companies use this three-digit number to estimate how financially responsible you are.
A number of free online services will let you check your current credit score and give you tips to improve it.
That will let you borrow more money at a lower cost — and a good score can sometimes mean the difference between landing a new job or apartment and getting rejected.
Credit monitoring can also protect you against identity theft. You’ll be notified about potentially fraudulent activity, like applications for credit cards in your name.
4. Stop overpaying for home insurance
To stretch your $1,000 as far as possible, take a second look at your regular expenses. For example, insurance can be intimidating, and many of us are happy to sign off on something that sounds about right if it means we don’t have to think about it anymore.
But a study by the Puget Sound Consumers’ Checkbook found people could save at least $1,000 per year on their homeowners insurance by choosing a different company.
To find out whether you’re overpaying for your coverage, check out a quote comparison site. These sites will instantly sort through quotes from a huge range of insurance companies at once and will even check for special discounts.
Home insurance premiums keep going up, so the longer you wait, the more you’ll end up paying. Take a few minutes to make sure you get the best rates available in your area.
5. Swap out your car insurance
It’s time to keep that momentum going. Car insurance tends to be even more expensive than home insurance, meaning you’ve probably got an even bigger opportunity to save.
Insurance shouldn’t really be a “set it and forget it” kind of thing. It pays to check in from time to time — and that’s where a quote comparison site comes in handy again.
In a few minutes, you can make sure you get the best price for the coverage you actually need. Just by poking around for better prices, drivers can save an average $1,127 a year, a study by CarInsurance.com found.
6. Protect your health and your savings
Americans spend way more on health care than anyone else. The average resident spends $10,966 per year, according to the Peterson Center on Healthcare and KFF — that’s 42% more than the average in Switzerland, which is in second place.
Even with some extra cash saved up, a medical emergency for you or a family member can wipe that away in a flash. So what can you do?
With a good policy comparison site, finding affordable health insurance is easy. It will sift through dozens and dozens of providers to find you the absolute best rate for the level of coverage you need.
All you have to do is answer a few quick questions, and the site will take care of the complicated comparisons for you.