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.
If you’re confused about where to start, don’t sweat it. Here are six ways you can meet your financial goals and watch your cash grow.
1. Hire a wealth manager (even if you’re not wealthy)
Everyone always talks about “investing” their wealth, but visiting the financial planner at your bank feels a little old-fashioned. Plus, who wants to waste a Saturday doing that?
There are companies that will act as your personal financial manager, and the great part is you don’t even have to put on your mask and leave the house. Welcome to investing in your sweatpants.
An online financial planning service is perfect for people who want top-of-the-line financial advice without the high fees.
You can get custom financial planning and investment management with plans tailored to your individual needs and goals, all at a flat rate. That includes everything from saving up for your dream vacation to kicking off your retirement plan.
And when you get help from a certified financial planner (CFP), you know you're working with a fiduciary — meaning your financial professional is required by law to put your interests above anything else. That means you’re in safe hands.
2. Let an app be your piggy bank
I love collecting spare change in a mason jar. Those nickels and quarters really add up, and can mean a huge chunk of change in the long run.
Recently, I’ve started doing the same thing with my debit transactions as well, using an app that helps you invest your spare change.
Here’s how it works: When you use your card to buy a coffee for $2.50, the transaction is rounded up to the nearest dollar — $3.00 — and the extra 50 cents is invested in a portfolio you've selected. Eventually, all of those little transactions add up to a nice amount of money that will grow as you invest it.
Other perks with this particular app? There’s no minimum set-up fee, it’s free for college students and you get a $10 sign-up bonus.
Free money to start investing? I’ll take it.
3. Get a lender to pay your bills this month
Yes —all of your bills.
If you were planning to use the $1,000 you saved to pay down some of your debts, that’s great – but if you’re stuck with sky-high interest rates, there’s a better way to go about it.
You can instead use a debt consolidation loan to pay off up to $100,000 of debt this month. You’ll answer a few quick questions, and within minutes you’ll be matched with all of the lenders who want to give you a loan to consolidate your debt.
You get to pick the loan with the best terms, and you’ll end up with one payment and one interest rate to keep track of. And with personal loan interest rates that start as low as 5.95%, you may be able to save thousands of dollars in interest costs.
Here are the best parts: It’s completely free to check online, and it won’t impact your credit score to see if you qualify.
4. Stop paying too much for car insurance
You can’t just stop paying your car insurance, can you? Turns out, you can. Or at least stop paying crazy premiums — which means more money in your pocket instead of the auto insurance company’s.
You should be shopping for car insurance every six months, each time your policy comes up for renewal.
Yes, we know that sounds like a lot of effort. But with the average driver spending around $2,500 on car insurance, can you really afford not to shop around?
An auto insurance comparison site makes it easy to size up rates in just a few minutes, after you fill out a brief survey.
You’ll be able to choose an insurance policy that offers big discounts on coverage similar to what you already have, meaning you can work your way toward your next $1,000 in savings.
5. Protect your family, just in case
Sorry, it's not something any of us ever wants to think about, but how would your family get by if you were suddenly out of the picture?
That probably won’t happen anytime soon — you've got a lot more living to do. But it’s smart to be prepared.
Taking out a life insurance policy is a great way to make sure your family will be financially secure if something happens to you.
If you’re worried that setting up life insurance will be time-consuming, pricey and maybe even a bit awkward, don’t be. You can go online and compare life insurance rates without sharing your personal data.
In just minutes, you can see three rate quotes customized to fit your needs. Depending on your age and your home state, you might pay less than $7 a week for a policy offering your loved ones $1 million in financial protection. If that doesn’t give you peace of mind, nothing will.