The cover story on this month’s Money Magazine asks “What would you do with $1000?” We’ve talked in the past about what you’d do with a major windfall, but I thought it would be interesting to take a look at your options with a smaller windfall.
Here are Money’s suggestions:
- Build up your emergency fund
- Spend five hours with a financial planner
- Buy a top-notch mutual fund*
- Upgrade your appliances
- Join a gym/hire a personal trainer
- Pay down credit card debt
- Update your estate documents
- Teach your kids about investing
- Invest in your career (training, etc.)
In our case, we’d either sock it away in our taxable investment account (we already max out our retirement accounts) or use it to pay down our mortgage. Other solid options that they didn’t list include charity, opening/funding an IRA, preventative maintenance on your house or car, planting shade trees around your house, and so on. Or maybe… Use it for something fun.
Now it’s your turn…
What would you do if $1000 fell into your lap today?
*Note: Money mentions several funds that have low minimum investments, including the Schwab index funds, whose minimums have been dropped to $100. I also like the Vanguard Star Fund for creating a diversified portfolio with as little as $1000.