Responsibly Using Your Money
Being responsible is not always fund but it is a part of being an adult. Unfortunately, we can not spend money like a bunch of teenagers any more. There are bigger goals that we need to reach, namely retirement. $500 dollars might not seem like a lot of money but it can be put to very good use. Let’s take a look at some ways to spend that money that will leave you better off in the long run.
1. Invest The Money
One option is to put the money into your investment account. Boring yes, but is is also responsible and will yield big rewards down the road.
That small amount of money that you have in your hand right now will be worth over 800 dollars in just ten years. That is with just a 5% return. Keep it invested for 20 years and it will be worth over 1300 dollars and go to 30 years and it will be worth over 2100 dollars.
That is a pretty good return for money that will probably not get you much at the moment.
2. Save The Money
If you do not have an emergency savings, this money can be a great way to start one. Ideally, you need to have a minimum of 3 months of living expenses in an emergency savings account. 6 months is an even better option.
Saving that much money might seem intimidating but you can do it, little by little. Make it a point to save a portion of your take home pay every month and put it into your emergency savings account. 10 percent is a good starting point but you should try to work yourself up to saving at least 20 percent.
Saving the 500 dollars might seem boring but it beats taking out a 500 dollar payday loan in the future if an emergency strikes.
3. Pay Off Credit Card Debt
If you are carrying credit card debt, this is a huge drag on your finances. It just does not make sense to be carrying a debt that is costing you over 18 percent a month in interest.
For the best credit rating, you should have your revolving debt under 30 percent but there is truly no good amount to carry. You should have your credit card debt at zero.
500 dollars is a big chunk of debt that you can pay off and using it towards your cards can save you an easy 100 dollars in interest in just one year.
4. Invest In Yourself
People often forget to invest in themselves. More education and more training can make you a more valuable employee. Make yourself more valuable to your employers and you can greatly increase your lifetime earnings. Obviously, the more you make, the more you can save for retirement.
So, how should you invest in yourself? There are a lot of ways.
You could take a certification course to get qualified in a new area of your field. You could take a class and learn Excel, PowerPoint, etc. Maybe even by some software to learn a new language. Think about the skills that are valuable in your industry and go after them.
5. Do Some Maintenance
Maintenance is boring but it can make the things that you own last much longer and will save you money in larger repairs.
If you own your home, perhaps now is the time to put a fresh coat of pain on the exterior trim and do some re-caulking. Maybe use the money to have your HVAC system inspected or pay for pest control. Boring, yes but you will feel better about your home wen all is said and done.
Your vehicle could be in need of repair as well. People change their oil regularly but they often forget about the other maintenance that is needed. Transmission filters need to be changed, belts get old and radiators need to be flushed. A few hundred dollars in maintenance now can save you thousands in the future.
6. Get Yourself In Shape
Healthier people are happier and more productive. This also means that they usually make more money.
Use part of that money to pay for a gym membership or some home exercise equipment. Lose a few pounds, feel better and have an overall happier and longer life.