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7 Life-Changing Money Moves If You Have At Least $1,000 In The Bank

Got a grand to your name? Here are seven money moves you can do to make the most out of it

Newsweek AMPLIFY 7 Life-Changing Money Moves

What can I do with $1,000? For most people, it's a luxury to have extra cash left over from paying the monthly bills—let alone a thousand bucks! If you've managed to scrape together a grand to save in your bank account, it's important to make smart decisions about it.

After all, while $1,000 in the bank is by no means insignificant, it's also incredibly easy to blow this amount of money on frivolous things. A luxury vacation or a shopping spree may be tempting right now, but there are other ways to spend the money that benefits you (and your family) for much longer. Even tiny steps like applying and qualifying for term life insurance or a couple of dollars monthly for an emergency fund can go a long way in securing your financial success in the future.

Here are seven great money moves that help ensure that $1,000 will last, grow, or at least go towards something that will make your life significantly better.

1. Pay Debt

One of the things that hold a lot of people back from saving money or building wealth is debt, especially unsecured debt with high interest rates. If a huge chunk of your monthly income goes to credit card balances or loans, it may be worth using some extra cash you have to pay these off.

There are different approaches to paying off debt, but the debt avalanche method—which means you pay off the debt with the highest interest rate first—allows you to save more money overall.

2. Apply for Life Insurance (From $16 a month)

Newsweek AMPLIFY 7 Life-Changing Money Moves

If you pass away, will your family have the means to survive or pay off your current debts? Life insurance is a benefit that will only kick in once you kick the bucket, so it's not something most people enjoy thinking about. However, it's very important, especially if you have dependents.

Contrary to popular belief, buying a life insurance policy can be fast, easy, painless, and affordable. For instance, Bestow offers coverage up to $1 million with premiums from $16 per month. The online platform makes getting a policy extremely simple with only several questions, zero medical exams, and no weeks of waiting for approval. It takes less than 10 minutes to apply and get approved—and you will have helped secure your family's future in the event of your death.

If you have at least $1,000 in your bank account, setting aside a portion of it for life insurance premiums is a must.

3. Switch Car Insurance Providers

Car insurance can be a huge drain on your monthly budget, but here's the thing: there's always a better deal out there. When it comes to car insurance, switching policies regularly isn't a bad thing at all. In fact, it's an excellent way to save money and even improve coverage!

If you've reached the $1000 mark and you want to get to your next financial milestone even faster, shop around for new car insurance quotes at least once or twice a year.

4. Invest in Stocks

To be clear, you don't have to spend a fortune on the stock market. It's possible to invest your spare $1,000—or a portion of it—into blue-chip dividend-paying stocks that offer annual dividends of over 4%, like AT&T. While stocks can be risky, the decent returns can make it worth your while in the long run.

Even just a bit of extra cash can turn into a money-making opportunity. Turn to apps like Acorns or Stash, which helps you turn chump change into small investments.

5. Invest in Real Estate

Newsweek AMPLIFY 7 Life-Changing Money Moves

Real estate is an excellent investment, but $1,000 isn't quite enough to own or manage a property on your own.

Fortunately, there are now many ways to invest in real estate without outright purchase, such as real estate investment trusts or REITs. Crowdfunding platforms like DiversyFund make it incredibly cheap for everyday investors—even non-accredited ones—to gain access to this asset class with as low as $500.

6. Start an Emergency Fund

It can feel a little futile saving for a future emergency when you could be saving for something tangible, like a house or retirement. However, it's important to have money stashed away for unexpected events such as job loss, medical emergencies, and unexpected home or car repairs.

Generally, experts say an emergency fund has to cover three to six months' worth of living expenses. Build it slowly over time, setting aside a fixed amount each month until you reach your goal.

7. Save for Retirement

Finally, make sure you're prepared for the day when you finally call it quits at work. One of the best ways to set aside money for retirement is through an individual retirement account or IRA, which is easy and affordable with great tax benefits.

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