Here Are The 3 Smartest Things To Do With An Extra $1,000

Personal finance expert David Bach shares the best way to handle a small windfall.

1. Build up your emergency savings accounts. If you do not have six months of expenses set aside, take that extra money and set up a money market account.
2. Start upping your 401(k) plan by at least 2%. Take the tax law saving that you are going to have in 2018 to do this.
3. Open a “dream account“. This account is for something that you want to do that is really fun and cool between now and retirement.
Open up an investment account specifically for that dream and name the account after what you want it for. Take out money every two weeks and put that money into an investment account for your dream account.

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6 years ago