$100: How to utilize this amount

Profile Picture
By: Anna Sweeting
on 4th Jan,2012

The power of money is immense. Moreover, in the present economic condition, every dollar will count. 2. This investment is not taxed.
$100: How to utilize this amount


The power of money is immense. Though $100 seems to be a meager amount, you shouldn't underestimate its value. Moreover, in the present economic condition, every dollar will count. No matter what your financial situation will be in 2012, here are tips which will help you in utilizing $100:

1. Pay down your delinquent bills: Though it may surprise
you, but $100 is a solid start in order to pay off your credit card
bills.  You may put $100 into an investment that can pay you a good
annual return compounded monthly. You can then utilize this money to pay
off the bills. There is no sense paying the minimum payments on
high-interest debt.

2. Go for College Savings Plan: Though $100 is a small
amount, you can utilize it to open up a College Savings Account. If you
save $100 for every month for the next 20 years at an interest of 7%,
then you will be able to save around $52,000. That will be a big amount
isn't it?  Moreover, if you go for 529 college savings plan, you will be
able to get tax protection from the federal government

3. Opening a Roth IRA: Investing in a Roth IRA is a great way to secure the golden years of your life. This investment is not taxed. Moreover, I feel that it is a good option to sock away your money in an account rather than keep it in cash.

4. Go for a Certificate of Deposit: If you want a better return than your savings account, you can go for a certificate of deposit. Moreover, unlike the Treasury bills or bonds, CDs are insured by FDIC.

5. Small home-renovation: It is true that home repairs are too costly. But using the $100, you will be able to fix some of your plumbing leaks and caulking holes. This will help you save quite large sum money that you pay off as monthly utilities. This will also help you in raising your property value if you're planning to sell off your property.

6. Start an emergency fund:
Emergency situation can arise anytime and at any place. You may lose your job, fall ill or your car may need massive repairs. In order to handle such a situation, it will be better if you could be well prepared with an emergency fund. The $100 will help you in setting up an emergency fund. You can plan to set aside three to six months' worth of living expenses so that if you lose your job, you won't face issues until you find a new one.

7. Dividend Reinvestment Plan: Dividend reinvestment plans are considered to be an extremely cheap way to start investing in stocks. You will be able to watch your money grow. They also create the sense of passive income and thus will make your money grow by leaps and bounds.

0
No votes yet


Page loaded in 0.111 seconds.