What would you do if you had $1,000 extra dollars? With the “This Month’s On Us” giveaway, AimBank and AimMortgage are paying one lucky winner’s rent or mortgage payment up to $1,000 this month. In honor of this giveaway, we are exploring some of the top most effective ways you can spend $1,000 extra dollars.
1. Pay off debt.
Paying off debt and, in particular, credit card debt, is one of the most effective ways to spend extra money. Many personal finance experts advise using the extra $1,000 to pay down the balance of cards with the highest APR first in order to see the greatest financial benefit.
Another effective way of paying down debt is to use Dave Ramsey’s “debt snowball” method of lining up your debts from smallest to largest and paying off your smallest debts first. Many find this technique creates momentum for faster debt elimination as it allows you to see immediate results by paying off your smallest balances first. For those who like to mark things off lists, this technique is especially emotionally satisfying.
Saving money is something that tops many to-do lists. Actually meeting those savings goals, however, can be a struggle. These helpful tips will put you on the path of to saving your hard-earned money and reaching your financial goals.
1. Set your priorities.
“Define what’s important to you,” advises Jonathan Hill, AimBank’s Lubbock market president. “As you’re making decisions throughout the year financially, ask yourself, ‘Does this financial decision get me closer to a priority I’ve already set, or does it get me further away from that priority?’”
Whether your goals are something large like a down payment on a house or a shorter-term goal like an upcoming vacation, making all purchasing decisions with your priorities in mind will make it easier to walk away from tempting impulse purchases that will take you further away from that goal.