If I give anyone $1,200 and ask them to spend it at free will, most people will find it easy to spend the money within 24 hours.
Without opposing the former, below, is the latter: what one seeking to invest in oneself or in the good could do, also, the five things that I would do with $1,200.
- Lower my debt level
Credit card level is reaching new levels in the United States. You can factor incentives such as low APR and/or points to use for travel, shopping and cash backs among many other perks. Credit card interest rates can range from 12-25% and higher. Plastic can help you in precipitated and unexpected situation, but they are dangerous and poisonous if you don’t control your spending. You can find online calculators and compute how your payments help reduce debt and how long it will take you to pay it off.
- Create An Emergency cushion
Most people do not foresee the need to have money on the side in case of job loss, special situations, or medical emergencies. If you look at the data, there are 125 million Americans between the ages of 30-59 years old. This age range is important since most social and economic commitments are made between this period. You could start building your emergency fund with this money.
- Invest In Stocks
The greatest return over time has been the stock market. You could achieve 7-8% annually on average. If you don’t know how to invest in the stock market, send us your questions. Below is a table of how your $1,200 could turn out at 7% annually:
|$1,200 invested today||Annual Return of 7%|
(We are accepting accounts today with as little as $100 a month or $1,200 a year)
- Invest In You
There is a great message by Charlie Munger on self-progress, and it goes like this:
“Charlie, as a very young lawyer, was probably getting $20 an hour. He thought to himself, ‘Who’s my most valuable client?’ And he decided it was himself. So he decided to sell himself an hour each day. He did it early in the morning, working on these construction projects and real estate deals. Everybody should do this, be the client, and then work for other people, too, and sell yourself an hour a day.”
He explains that working longer is not necessarily the best idea. Do something to improve yourself. This can range from going back to school, learning a new skill, finding a mentor or reading books. The choice is yours!
- Last But Not Least, You Can Donate It
If you are financially secure and with little or no debt, then perhaps you can give this money to someone who could use it. Whether you give it as a gift, school donation, a family member’s prepaid college (funds or trusts work, as well), and/or to a non-profit organization, it is your choice.
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For blog link click here: Sonoman Rx
If you are curious about opening and account, feel free to contact me!