No one really needs to think long about where to put the extra ton. Too bad the extra tons are barely distributed. So far, many Finns have been able to get around a thousand dollars in tax refunds (the average tax refunds have varied between 600 and 700 dollars over the years). However, the tax refund is not extra, gratuitous money. Tax rebates are, as the name implies, refunds of overpaid taxes, and this December joy will end with tax reforms.
For example, $ 1,000 can be squeezed into your account by selling a lottery prize, a relative’s gift, a workplace bonus, or something extra for yourself. Listed below are items that can easily be consumed in a ton. Of course, you can bargain for Christmas, but you have to buy new winter tires for safety reasons. If you can’t find one in your wallet and your lottery doesn’t favor, you can get a ton of loans fairly easily.
You can apply for a $ 1,000 loan from your own bank or various financial institutions. Credit cards tend to have a high-interest rate, but if you can pay off your loan soon, a credit card is a handy help when shopping. However, it is not advisable to start investing in loan money. Consumer loans and credit cards generally have such high-interest rates that it is difficult to find an investment worth thousands of dollars that would yield so much that this game would be profitable.
What to buy with $ 1000 in shopping money
If you think of tax refunds or other “ear tags” that end up in your account at the end of the year, most Finns spend a thousand dollars to pay their bills and prepare for Christmas – mainly Christmas presents and Christmas meals. The average Finnish consumer spends around 300 dollars on gifts and around two hundred per person for Christmas meals and other Christmas related purchases. Thus, in a two-person household, Christmas “costs” roughly a thousand dollars. Many people are happy to invest in the preparation of Christmas and do not want to be skimped on ham or punch. If Christmas shopping can be done with cash, the better. There are other bills in January and February, so you might not have enough money to pay off your entire credit card debt.
1000 dollars is also easily spent on car maintenance or new winter tires, for example. Especially on land, a car is a necessity and cannot be left unattended or serviced. An extra ton may also be needed for various home-related purchases. A new oven or fridge to replace a broken one costs hundreds of dollars.
There is also money to spend on children’s hobbies. Hockey equipment and riding lessons are expensive. If you know that this kind of spending is coming soon, you should leave a ton aside. It’s a good idea to put a ton in an account that doesn’t have a debit card. This way, money is safe waiting for the day when the last washing machine goes off or the hobby price is approaching.
Invoices and credit card debt and buffer fund
It would be wise to pay off all due bills in order of importance if there is extra money in your account. It is a good idea to prioritize a credit card bill or other high-interest bill over other bills. In an instant, the annual percentage rate can be over 250%, so it is a good idea to pay off such loans immediately. If necessary, you may ask for payment on other bills to get rid of such high-interest loans.
You may want to apply for a bank loan to pay off any quick tips. Unsecured bank loan rates range from 10% to almost 30%, but much better than 250-300%. Car financing and home improvement loans can have quite high interest rates. If there are no such bills and the rent or any other bills are not in arrears, a ton is a good start for a buffer fund. Everyone should have a buffer account for a bad day. An amount equal to 2-3 months of fixed costs should be deposited in the buffer account.
Tons of investors?
Maybe no big costs are coming and the buffer fund is up? In that case, it is worth investing $ 1,000. It is a good idea to talk to your bank about the types of funds they have. Even if you are prepared for bigger risks than expert funds, you can start trading at $ 1000. Let’s take a rough example. If you put a ton of seed money into a fund or shares, and then continue investing $ 100 a month, you will have 10 years to raise money. If the fund or equities are expected to yield a moderate 4% return, the total amount will reach USD 16,000 in ten years. The yield is therefore over USD 3000.
1000 dollars can also be the first step to your own home. People under 40 have the opportunity to open a special home savings account to buy a first home. If you save a few tens a month on your account, you can take out a mortgage in exceptionally good terms in a couple of years.