Let's talk money, honey: what should you invest in?
Whether you have a $5 or $500 Memento, you deserve to treat yourself in a way that helps you reach mental, physical and financial health. It’s not hard to spend money, but we’ve compiled a few ideas and suggestions on what to do with your new cash.
Revenge of the Nerds
Whether this is for yourself or a loved one, investing in education can pay off in the long run. A few ideas to make your money work for you. First, see if your company offers an education reimbursement plan. Companies can deduct it as a business expense of at least up to $5,250 a year. Ever heard of a 529 Plan? Almost all US states offer a plan with tax-free earnings growth and tax-free withdrawals when they are used on education expenses. You can add up to $10,000 into the account each year and it will be invested over time. Or check out some free or relatively low-cost options with Coursera, Harvard edX, Masterclass and General Assembly.
Treat Yo Self Day
Everyone deserves to take a break and relieve stress. According to the World Health Organization, stress and anxiety cost trillions of dollars in lost productivity. For that reason, we highly encourage a Parks and Rec inspired day, whatever that means to you. Grab a late breakfast, go for a nature walk, get a massage, sip on some coffee with a friend, read a book, visit a local shop, try meditation, pop into a museum or whatever activity brings you happiness.
Adulting so Hard
Pay off your debt! This is one of the best ways to secure financial freedom. Credit cards have extremely high interest rates, with the average credit card interest rate at 19.02%, which means you are paying a lot of extra cash on all of this debt. Plus it can damage your credit score. But how? Find a method and create a plan that works for you, such as the snowball method where you pay off the smallest balance first, and then the next, because knocking out entire balances can build motivation to keep going until all your debt is gone.
Fly, Fly Away (Eventually)
Create a travel fund and save for future travel. According to the latest National Travel and Tourism office, only 11% of Americans traveled abroad for fun in 2018. Seeing new sites, trying new food, hearing new languages are all ways that we can have greater appreciation for others and increase creative thinking. While most of us may not be able to go anywhere now, make it so you can swing the budget later! According to Fidelity experts, the average American spends 3% of their annual pre-tax income on travel. Start there and also look into airline and hotel points for additional savings.
Additional Resources
While we’ve listed a few high-level ideas, we included some additional financial resources that will help you dig a little deeper into what’s best for you and your dough.