What to do with $1000
In this day and age a lot of people have concentrated on saving more, especially when they have seen many of their stocks and mutual funds drop like a rock thrown off the Empire State building. If you are one of the lucky ones who have some cash on the sideline, here are few ideas for that $1000:
1. If you are feeling patriotic, perhaps a U.S. savings bond is the way to go. You will not get rich by investing in U.S. savings bonds, but you will not lose anything either. Consider the series EE savings bonds – the interest income can be excluded from income if you used for education expenses (if issued after December 21, 1989). Plus, the interest income on bonds is excluded from state or local taxes.
2. Invest in penny stocks. Stocks may be the last thing you want to hear right now, but there are a lot of stocks trading around $1 per share that could pay handsomely in five years. Of course there is no guarantee, but stocks like Blockbuster and Freddie Mac are dirt cheap right now. If they go belly up, you don’t have that much invested, but if they trade at $5 per share in a few years, you have earned a very nice return.
3. Tackle some minor home improvements that you can do yourself. If you hire out the job, $1000 does not go very far, but if you do the work yourself, it can really go a long way. Paint a few rooms, replace a faucet, update some ceiling fans – all these are relatively minor expenses.
4. Join a gym for a year or two. If you shop around, you should be able to find a gym or YMCA for under $50 per month. What do you gain? Better health – and that can really save in the long run. Plus, you will probably feel a lot better too and hopefully you can continue the habit.
5. Donate it to a church or organization. Agencies such as the Red Cross provide disaster relief and local churches provide a lot of services in your community to help people. You get the tax benefit and you can feel good that you did something to help others.