Saturday, December 12, 2015

7 Financially Sound Things To Do With An Extra $100

A hundred dollars doesn't seem like a lot these days, but never underestimate the impact of a single dollar.  Today's post is on several sound options to put a windfall of $100 to righteous use.  The tendency for people who come into some money, especially a small sum that could've easily been gifted, is to go out and spend.  Why not?  I's not like you're using any of "your" hard-earned money.

Though it feels good to reward and indulge yourself "playing with the house's money" so to speak, it is a set-back move.  Extra money that comes your way is for moving forward, making headway, or limiting future expenses.  In a country (the U.S.) where the middle-class is no longer the majority, rare opportunities like these, are not to be squandered cementing your lower-class status.

I am about to get paid my $100 Adsense payment from Google.  And I have been thinking hard about what to do with this money soon to arrive in the mail.  This is what the spender in me wants:

This Zipp Speed full carbon fiber water bottle holder weighs only 19 grams!  At $43.75 on ebay, I can afford to equip my bike with two of these, given the $100 smackers.  There is no way to rationalize an expense like this, however, without coming into conflict with your inner thrifty nature.  I can easily find a water bottle cage for far less...albeit, a heavier one.  Boo!  Cyclists love to minimize their bike's total weight.

Couser Canyon Rd. Valley Center, CA 12/12/15

Alright, the financial guru in me knows there are better uses for this money.  I'm here to present 7 financially sound things to do with an extra $100 in your pocket.  Starting with...

1.  A much needed car repair.  I'm on year 8 with my 2007, Honda Civic EX.  It needs new struts and shocks, new tires, and a brake job.  The latter two are high safety needs.  No doubt your used car can use some love too.  After all, the last thing we need is to have to buy a new, used car, shelling out thousands of dollars all over again.  My car is only at 115K miles, so it has a long way to go before I use it as a trade-in.  $100 won't cover these vehicle expenses, but it will help reduce your overall bill if you choose one repair and postpone the others. 

2.  Pay down a credit card (other debt).  Success stories of people who came back from the brink of death with their debt almost always includes people explaining they put every cent they could spare to lower their debt.  $100 can be an extra payment, maybe even two!

Pic from my ride

3.  Add to your emergency savings.  Your emergency savings looking rather flimsy?  You're not alone.  But being in the majority isn't good in this case.  $100 can come in handy one day so at minimum, you are better off putting it in a Brokerage/Money-Market account linked to your checking account.

4.  Put the $100 in your business account and use it to invest in your biz.  That's where my $100 from Google should go.  After all, it was earned from this blog which is part of my personal business.  Business capital should be used to grow your business, a business expense, etc.  A profitable and successful business is the fastest way to build wealth!

5.  Buy stock.  Have shares of publicly traded companies already?  The past week was a buying opportunity, with stocks tanking.  The key to success in stock market investing is to buy when there are several days of selling that have given you an opportunity to buy a great company once again below your cost basis.  $100 may buy you one share, two shares, or more.  I bought Alcoa (AA) last week, a great value play right now, and with this extra $100, I'm gonna buy more!

Pic from my ride

6.  Go to a local Real Estate Investor club, join it, and pay for the yearly dues with the $100.  Aside from networking, you will benefit by learning the ins-and-outs of RE investing.  If RE isn't your thing, find another "investor" club to join.  The main point is to keep learning and expanding your business contacts.

7.  Pay for a weekend night stay at a great hotel for you and your significant other...getting away from the kids.  Ah...but leave the fun for the night.  Instead, use the afternoon time to review your financial house and get it in order.  Better yet, use it to make future financial plans.  You will never be rich if you and your partner fail to communicate on financial matters and goal setting, and this is incredibly hard to do with kids and work taking your every minute. 

pic from my ride

That about raps it up for today.  I sincerely hope you will think hard about any new "extra" money that comes your way in the future.  Until next time!

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