What to do with $1,000?

[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.

Sounds like you’re going to waste this cash OP. I recommend you don’t do that and spend it on booze and hookers instead

Go buy a gun. If you spend $850 on a firearm, use it only a few times and take good care of it it will still be worth around 90% of the original price you paid or even more. You can get a great firearm for $850. An AR would not be a bad idea especially since you live in Yankee territory where legislation is pushing to outlaw them.

In the end you still have a an awesome piece of machinery, a good tool, a good protection of your money and you can have a lot of fun shooting them as well.

17 black

[quote]blindpirate wrote:
17 black[/quote]

17 black what?

[quote]Dr. Pangloss wrote:

[quote]blindpirate wrote:
17 black[/quote]

17 black what?[/quote]

I am guessing roulette, but if there ever was a case for hookers and blow, one grand made off the books on a weekend was probably it.

It is just that it is no longer off the books because he had to put it out there, did he not?

[quote]orion wrote:

[quote]Dr. Pangloss wrote:

[quote]blindpirate wrote:
17 black[/quote]

17 black what?[/quote]

I am guessing roulette, but if there ever was a case for hookers and blow, one grand made off the books on a weekend was probably it.

It is just that it is no longer off the books because he had to put it out there, did he not?[/quote]

35k - W-2G on a 36-1 or 37-1 shot

[quote]Phoenix44e wrote:
Over the weekend I took a small job that made me a cool $1,000. Now I’m looking to do something with that money to turn a bigger profit.
[/quote]

Hookers and blow.

If that’s not an option, Buy a Glock 19, ammo and take a training class.