Three things to do with $1,000
To some $1,000 is a drop in the bucket, to others, it takes weeks of savings to achieve. But if you had an extra $1,000 – have you given any thought of what you’d do? Here are some smart options.
1. Get a Will
Much like the life insurance conversation, thinking about and planning for your death isn’t fun. But, it is the responsible thing to do and with $1,000, you should have enough to create a will and name your Powers of Attorneys for property and for care. Having a will is especially important if you own real estate or have children. Who do you want to take care of your children should both you and your spouse pass away? This needs to in your will to ensure your wishes are followed, otherwise, the law gets to decide.
2. Start an Emergency Fund
With most Canadians living paycheque to paycheque, a sudden inflow of $1,000 would be a great way to create an emergency fund. Although the ideal amount of an emergency fund is 3-6 months of expenses, this sure would be a step up from having nothing!
3. Pay Off Expensive Debt
Credit card debt can be crippling. At 20% interest, a $1,000 payment to a credit card would save you $200 on interest over a year. Not only have you saved the $200 interest expense, you’ve knocked off $1,000 from the balance, which totals a $1,200 swing in your favour! That’s a no-brainer!
If you’ve got your will in place, an emergency fund saved up, and no debt, think of something fun to do with $1,000! I’d probably get a good pair of tickets to a Toronto Raptors game, or maybe host a backyard BBQ with friends and family and take care of the bill!
If you think this blog was irrelevant because you'll never stumble across $1,000, why not try saving $3/day for an entire year. You'll notice you've just saved $1,095!