The Best Ways to Use a Few Hundred Dollars
If you are lucky enough to find yourself with a few extra hundred dollars--perhaps from your tax refund, an annual bonus, or a very generous relative who didn’t have time to go shopping but wrote a check instead—it can be very tempting to spend it on stuff. You may think, “How much of a difference can $500 really make?” Used wisely, even a few extra hundred dollars can put you on the road to a more financially secure future.
Here are four ways to put those dollars to better use:
1. We have mentioned an Emergency Fund a few times here in the CAMPUS Corner Blog. We talk about emergency funds because they are important and can really save you in dire situations. You will want to save the equivalent of about six months living expenses…so, you might as well get started even with only a few hundred dollars. Once you get started, watching your balance increase will encourage you to continue saving!
2. Depending on your situation, you may want to take advantage of an IRA (Individual Retirement Account). Even if it’s a small amount, you have to start somewhere. Withdrawals are limited so you will not be tempted to touch your funds. Not only will compounding interest increase your balance over time, but it can come with some tax benefits too. We recommend consulting a tax professional to discuss the best option for your financial situation.
3. Start saving for a short-term goal – a down payment on a car, new kitchen counters, or a summer vacation. Take advantage of savings accounts that earn a little more interest than a regular savings account and have withdrawal limits. Many credit unions have account options that will help you reach these short-term goals. At CAMPUS, we offer free Savings Club Accounts that have designated disbursement dates.
4. Donate to charity. While money cannot buy happiness, giving money can bring a sense of personal satisfaction that can boost your happy factor! Plus, if you itemize deductions on your tax returns each year, you can include donations as a deduction. Research local charities to find one that really means something to you – where can your dollars do the most good?
Whether it is $50 or $500, be intentional in how you use it and you will find that it can make an obvious impact on your sense of financial responsibility.
By Campus USA at 30 Oct 2018, 16:31 PM