T Nation

What to do with $1,000?

[quote]broyourmybro wrote:

[quote]usmccds423 wrote:

[quote]Phoenix44e wrote:
Rules: I will not be using this to pay off debt
[/quote]

If you have debt of any kind this is a really dumb rule. [/quote]

In general yes, but I don’t always agree with this. Hypothetically, if you had a loan at a 2 percent rate and you had an investment available that was a safe 4 percent return, it would then make sense not to pay off the loan.[/quote]

True; however, what are the chances you have debt at 2%? What are the chances you’ll also yield 4% on your investment?

Point being most people have debt at rates higher than any short termand even long term ROI. Credit card debt being the main culprit.

[quote]Chris Colucci wrote:
Based on what you said there, a grand could get you 3 months of online coaching from Dean Somerset and a basic nutrition plan from Meadows or Mighty Stu.[/quote]

Solid investment.

You’re out of work?? Put that shit in the bank in case you need it…

[quote]Phoenix44e wrote:

[quote]Dr. Pangloss wrote:
Invest in yourself.

What do you do? Can you take a class that will further your skills? Market yourself to more customers? Buy tools that will increase your abilities or make you more efficient?

You can buy 2,000 full color door hangers for $160. You can mail 1000 full color postcards for $500. Do you have clients? Take them out to lunch and ask them what their biggest problem is right now. Then figure out how to solve it.[/quote]

Right now I’m seasonally laid off. My job which was full-time year round was changed when the company was bought out. I go back to work the soonest being the middle of March…(the weather has taken it’s toll up here in New England)

So as for buying tools, marketing for the company there’s no point.

You did offer very good advice, but unfortunately nothing I can do with right now.
[/quote]

Can you do any side work? Sounds like you have some skills.

[quote]broyourmybro wrote:
Continue to do what you did over the weekend every weekend. $52k of post tax cash is a pretty good side hustle.

Looking for a meaningful return on an investment of $1000 is a bit unrealistic. Let’s say you get 20 percent, which is a great return, is $200 really that meaningful to you?

I suggest either saving it and enjoying the slight financial security cushion, or buy a squat rack.[/quote]

Thanks for the info. Basically I was shoveling roofs. With all the snowfall up here in NE some homeowners are getting frantic about the amount of snow on their roofs. I was able to jump on with a company that didn’t risk me loosing anything with my current company. as in, paid cash.
I will continue to do it as long as I can, but I don’t think it will last more then a week or so.

[quote]Chris Colucci wrote:

[quote]usmccds423 wrote:

[quote]Phoenix44e wrote:
Rules: I will not be using this to pay off debt [/quote]
If you have debt of any kind this is a really dumb rule. [/quote]
Agreed. Pretty strange asterisk to put on a significant chunk of change.

With that said, presuming you have little actual debt, you could combine this windfall with your other thread about starting over physically.

[quote]Phoenix4ee wrote:
I’m looking to systematically change my body from the top down, or inside out however you want to look at it. But the major point is I’m looking to transform my body into what an able bodied man should be, not some office jockey/couch potato that it is now.[/quote]
Based on what you said there, a grand could get you 3 months of online coaching from Dean Somerset and a basic nutrition plan from Meadows or Mighty Stu.[/quote]

I didn’t think you even noticed the thread. I figured you would have posted some advice in it.

[quote]Phoenix44e wrote:
as in, paid cash.
[/quote]

I hope you plan on declaring that $1K as income on your 2015 return seeing as you just admitted, in writing, it was paid in cash.

[quote]usmccds423 wrote:

[quote]broyourmybro wrote:

[quote]usmccds423 wrote:

[quote]Phoenix44e wrote:
Rules: I will not be using this to pay off debt
[/quote]

If you have debt of any kind this is a really dumb rule. [/quote]

In general yes, but I don’t always agree with this. Hypothetically, if you had a loan at a 2 percent rate and you had an investment available that was a safe 4 percent return, it would then make sense not to pay off the loan.[/quote]

True; however, what are the chances you have debt at 2%? What are the chances you’ll also yield 4% on your investment?

Point being most people have debt at rates higher than any short termand even long term ROI. Credit card debt being the main culprit.[/quote]

This makes sense and I agree, particularly with short term debt. The scenario I described isn’t out of the question though. Mortgage rates are pretty low right now and I’ve seen people using spare cash to pay down 3% mortgage balances when that may not be the most wise use of their cash.

[quote]usmccds423 wrote:

[quote]Phoenix44e wrote:
as in, paid cash.
[/quote]

I hope you plan on declaring that $1K as income on your 2015 return seeing as you just admitted, in writing, it was paid in cash. [/quote]

Yeah, every penny

[quote]usmccds423 wrote:
You’re out of work?? Put that shit in the bank in case you need it…[/quote]

I’m not out of work, I’m seasonally laid off. There’s a difference, God damn it there’s a difference.

[quote]sufiandy wrote:

[quote]usmccds423 wrote:

[quote]Phoenix44e wrote:
Rules: I will not be using this to pay off debt
[/quote]

If you have debt of any kind this is a really dumb rule. [/quote]

Yep, if you have debt and $1000, you don’t have $1000[/quote]

Why?

What if you knew you don’t have to pay off the entire debt immediately, and knew that investing the 1k can get you anywhere between 2k-5k within a couple of months?

I don’t understand the “debt is bad! Must be gone immediately!” idea.

[quote]broyourmybro wrote:

[quote]usmccds423 wrote:

[quote]broyourmybro wrote:

[quote]usmccds423 wrote:

[quote]Phoenix44e wrote:
Rules: I will not be using this to pay off debt
[/quote]

If you have debt of any kind this is a really dumb rule. [/quote]

In general yes, but I don’t always agree with this. Hypothetically, if you had a loan at a 2 percent rate and you had an investment available that was a safe 4 percent return, it would then make sense not to pay off the loan.[/quote]

True; however, what are the chances you have debt at 2%? What are the chances you’ll also yield 4% on your investment?

Point being most people have debt at rates higher than any short termand even long term ROI. Credit card debt being the main culprit.[/quote]

This makes sense and I agree, particularly with short term debt. The scenario I described isn’t out of the question though. Mortgage rates are pretty low right now and I’ve seen people using spare cash to pay down 3% mortgage balances when that may not be the most wise use of their cash.
[/quote]

Ya, I agree in regards to paying down a low interest rate mortgage. The only caveat being, while $1,000 one time isn’t a lot, paying even a low interest rate mortgage down quicker can save you a lot of money in interest. 3% of $300K adds up quickly.

[quote]Phoenix44e wrote:

[quote]usmccds423 wrote:
You’re out of work?? Put that shit in the bank in case you need it…[/quote]

I’m not out of work, I’m seasonally laid off. There’s a difference, God damn it there’s a difference.[/quote]

It’s your money. I’d put it in my rainy day fund if I was seasonally unemployed.

[quote]magick wrote:

[quote]sufiandy wrote:

[quote]usmccds423 wrote:

[quote]Phoenix44e wrote:
Rules: I will not be using this to pay off debt
[/quote]

If you have debt of any kind this is a really dumb rule. [/quote]

Yep, if you have debt and $1000, you don’t have $1000[/quote]

Why?

What if you knew you don’t have to pay off the entire debt immediately, and knew that investing the 1k can get you anywhere between 2k-5k within a couple of months?

I don’t understand the “debt is bad! Must be gone immediately!” idea.[/quote]

Well, sure, but what you’re proposing is unrealistic… What short term investment yields a 200%-500% return? What is the risk of said investment?

Now look at the flip side. You have $1,000 in credit card debt at 15% (not unreasonable). Even if you’er annual ROI is 5% you are at a net loss. Every penny of the gain, which you’re likely going to be taxed on, goes to paying credit card interest plus some.

That’s also assuming you actually have a gain on your investment, which is not exaclty a guarantee.

Debt isn’t good or bad; however some debt makes financial sense (mortgage) while some is a terrible financial choice (credit card).

I’d make an extra payment on my truck, which is the only debt I have, buy myself a little something nice, meaning a durable good, I could use a few more good wood chisels, some good shoes for work, and put the rest into savings.

Step 1: Buy a chainsaw.
Step 2: Wait for Hurricane season.

Seriously though, no one is ever going to tell you what you’re actually asking. You’re going to have to figure it out yourself. No one is going to give away their money making secret, even the guys that try and sell you literature claiming they are doing just that.

People might be willing to share general principles (as others have done here) but they’re never going to spell it out for you.

Why? Either they don’t know OR if someone finds a guaranteed way to make a good/quick return on $1000, they will be scaling it up over and over, localy, regionally, nationally, internationally, until that hustle is bled dry.

[quote]usmccds423 wrote:

Well, sure, but what you’re proposing is unrealistic… What short term investment yields a 200%-500% return? What is the risk of said investment?[/quote]

Education =D

[quote]usmccds423 wrote:
Debt isn’t good or bad; however some debt makes financial sense (mortgage) while some is a terrible financial choice (credit card). [/quote]

Oh no doubt. This is what I wanted to get at anyhow.

[quote]magick wrote:

[quote]usmccds423 wrote:

Well, sure, but what you’re proposing is unrealistic… What short term investment yields a 200%-500% return? What is the risk of said investment?[/quote]

Education =D
[/quote]

Sure, if you can find some kind of educational endeavor that will yield you a higher income then by all means. $1,000 is not a lot of money though. Using my self as an example, it’s cost me over $1,000 for a CMA license and I don’t know what the ROI will be. My graduate education will ultimately cost me about $15K out of pocket and my company reimburses $5K a year. Again, ROI is hard to calculate at this point.

Education is expensive.

[quote]magick wrote:

[quote]usmccds423 wrote:
Debt isn’t good or bad; however some debt makes financial sense (mortgage) while some is a terrible financial choice (credit card). [/quote]

Oh no doubt. This is what I wanted to get at anyhow.[/quote]

Internet high five!

A worthy charity close to your heart. Nothing feels like a positive more than giving.

I’ve never regretted giving, even in times when I was broke myself.

Buy some silver or oil stocks. You will probably get a nice return on those in a few years.