What Would You Do With $1,000?

Groceries or CD + Student Loan

I would either:

A) The grocery stores are doing a deal where if you buy a $1200 gift card, they add $120 to the value on the card. I'd add $200 to the $1000 and buy one of those. The 10% immediate bonus is better than any savings account can give, and we'll use that money on groceries before the year is out anyways.

If I didn't do that, I'd

B) Buy a 1 year CD which expires right before we start paying interest on our student loans. Then in a year, I'd use that money to pay off the student loans.

Either way, I'd be trying to maximize its usefulness

stuporglue of UT @ May 08, 2008 13:48:13 PM

An extra $1,000?

I just heard about a way to send money directly to Burmese monks for cyclone aid--allowing the donor to bypass the government--so I'd probably look into that and send them $100 if it seems feasible; otherwise, I'd donate that money to another charity. My boyfriend, who's Tibetan, wants to set up a non-profit organization to build an orphanage school in his hometown, so I'd donate $100 toward that, and I'd spend another $100 on an online course, such as grant-writing, that would help me help his future non-profit and would also be useful in my post-grad-school career. I'd put $300 towards my credit card debt, and save the remaining money (ideally toward a research trip--it would be helpful to do fieldwork overseas for my dissertation--but more realistically/immediately, in my currently non-existent emergency fund).

Leah of MA @ May 08, 2008 13:33:51 PM

Windfalls = Half to Bills, Half to Fun

I was raised that with any "gravy" (unexpected income) money, you allocate half to stuff you don't want to pay and the other half you get to spend however you want.

You use half off it to pay bills/debts and then have fun with the rest. This way you don't feel guilty about spending money on things you want, and at the same time you don't get burned out on sticking to a budget.

I already max out my Roth IRA annually, and since this isn't a payroll entitlement, I cannot add it to my 401(k).

So, I would pay $500 to my HELOC, or buy some index funds.

Then, I would spend, or save in a High-Yield Savings Account, the other $500 towards the purchase of some solar panels for my house. After I tinkered around with the solar panels for a bit, I would look into providing installation for renewable energy products in my area. I figure I could start with installing solar panels, and move towards wind generators or other alternative energy sources, to do my part to help reduce our country's dependence on foreign oil.

Rob M. of UT @ May 08, 2008 11:52:24 AM

I'd spend $990 on booze, cars, and women... and then I'd just blow the rest.

Anthony @ May 08, 2008 11:52:13 AM

If I received an unexpected $1000, I know it would be split into two places. $500 would go into my son's college savings plan, and the other $500 would go towards the principal on my mortgage. Paying down my principal and saving money for college are the two biggest financial concerns for me right now. Of course, if the mortgage was paid off, my answer would change to $500 for college and $500 for retirement. That will have to wait until another unexpected $1000 comes my way. =)

Dana S. of IL @ May 08, 2008 11:49:04 AM

destination heloc

When we bought our house, unfortunately at the height of the bubble in 2005, we took out a heloc in order to have a 20% downpayment and also to pay for some deferred maintenance that needed immediate attention.

Finally the end is in sight for the heloc and we are becoming impatient to pay it off, which will definitely happen this year. Our rebate check will definitely go to the heloc along with any extra pennies we can squeeze out. An extra $1000 would bring us that much closer.

After the heloc I will work on my Roth IRA contribution for 2008. And after that, building up the emergency fund. And after that, a little boost to our son's 529. And after that, we have home improvement plans for the kitchen, bathroom and living room. So whenever an extra $1000 falls into our laps, we have lots of plans for it.

EP of VA @ May 08, 2008 11:24:20 AM

10% for Me, 90% for Debt

I would use $100 and treat myself to video games or fancy foods. I'd like to use it all to pay for debt but I know I would end up indulging myself so better to set a limit. The rest then would go to pay back my credit card debt.

Richard of NY @ May 08, 2008 10:57:26 AM

Baby!

My wife and I have maximized our ROTH IRA and have 5 months of emergency cash in our Vanguard Prime $ Market Account. We pay off our credit card bill every month, otherwise, we would put our $1000 in one of those options.

We are expecting our first child in August. One of my worries is having enough $ to save for both our retirement and her college fund. I will use $500 to start a 529 plan for her, and use the remaining half towards a plane ticket for my mother-in-law to come from Thailand and see her grand-daughter!

Tony L. of OR @ May 08, 2008 10:54:38 AM