If You Have More Than $1,000 in Your Checking Account, Make These 5 Moves
You’ve done it. You’ve built up a little cushion in your bank account — $1,000! It feels good, right? Those days of checking your account balance in a panic are behind you.
Congrats! You’re on the right path. Now it’s time to think about some longer-term goals. What do you want to accomplish next with your money? Do you need to save more? Do you want to buy a home someday? Invest?
What’s the next step you should take? What are some specific things you can do to take your finances to the next level?
We’ve got some ideas for you:
1. Let This Finance App Surprise You with up to $1,250
If you’re like a lot of us, you just never get around to saving money. Hey, we know what that’s like. After all, roughly 45%1 of Americans haven’t really gotten around to saving any money. It’s just a fact of life.
So how can you save money, really?
The online finance app Chime offers automatic savings features that help you tuck away money without even thinking about it. We interviewed Samuel Demeny, who regularly uses his Chime Savings account. According to him, in just nine months, he saved up $1,250 — without even thinking about it.
Chime has two automated savings options: One feature rounds up your purchases and saves the change every time you spend, and the other lets you save a percentage of your check2 every time you get paid. (Both features require you to sign up for a Chime Spending Account first, but it’s quick and easy to do.)
The money adds up quickly, and it’s completely automatic.
It takes just five minutes to open an account and see how much you could save.
2. Spend $1 to Own a Piece of Amazon, Disney or Apple
We all know we should probably be investing. But it can feel complicated and expensive to get started — especially if you want to invest in some bigger-name stocks. But if you know where to look, you don’t need tons of money. You could get started with just $1.
Whether you have thousands to invest or just $1; you can get started with an investing app called SoFi. SoFi is great for both beginners and more experienced investors, because it lets you buy and sell stocks and exchange-traded funds (bundles of stocks) without paying any commission fees at all. It even lets you start a retirement account, like an IRA or a Roth IRA.
It even lets you buy fractional shares of big-name stocks, like Amazon, Disney or Apple. This lets you invest in companies you believe in, but that you might not otherwise be able to afford.
You can open an investment account with as little as $1. It only takes minutes to sign up, link your bank account and drop a little money in there to invest. Then you could be part-owner of a company you believe in.
3. This App Gives You Access to a Historically Safe Investment Option You’ve Probably Never Heard of
We all know one of the obvious ways to grow your money is to earn interest on it. But banks these days are paying such low interest rates, it hardly feels worth it. And traditional investing can feel daunting.
But there’s an option that could earn you interest1— and can also be used to make purchases. Jiko lets you invest in Treasury bills — something most folks can’t easily access.
A Jiko account keeps you invested while providing a similar spending experience you’d expect from a checking account. Plus, with Jiko’s debit card cashback rewards program, you can receive 1% cashback2 on top of that. And because T-Bills are backed by the U.S government, they’re a historically safe investment3.
In fact, they’re such a safe and liquid investment, it’s common for banks to buy Treasury bills when you make a deposit — and they keep any earnings. When you open an account with Jiko, your money will be invested in Treasury bills in $100 increments. Normally an investment like this can be complicated to liquidate, but with a Jiko debit card, you can access your money in real time4.
Plus, don’t forget about the 1% cash back on qualifying purchases2. It takes about 10 minutes to get started by filling out your information (which will include your SSN), but you’ll have both a bank account and an investment account set up when your account is opened5.
4. Cancel Your Car Insurance
Here’s the thing: your current car insurance company is probably overcharging you. But, who has the time to look around for around a new company?
A company called The Zebra will do it for you for free in just two minutes. It gets people an average of $670 back in their bank accounts a year — and you can get the same coverage you already have.
It doesn’t matter when you last renewed; you can get a check from your old company for the time left on your previous policy. (Read: They probably owe you money.)
You don’t have to make any calls or fill out any forms. It takes two minutes to see how much The Zebra can put back in your pocket. And the best part? Because we’re driving less, some insurers are slashing prices this month.
5. Invest in Real Estate (Even if You’re Not a Millionaire)
The stock market can be a scary place. Stock prices shoot up and down like a roller coaster ride, and who knows when the whole thing might crash?
It would be nice to diversify and invest some of your money in real estate, but don’t you have to be wealthy to do that?
Now you can invest like the 1% does, and all you need to get started is $500. A company called DiversyFund will invest your money in private real estate — specifically, in apartment buildings it co-owns with its investors — and you only need $500.
You can see exactly which properties are included in your portfolio through their online dashboard — like a 54-unit apartment complex in Salt Lake City, Utah, or a 30-unit waterfront property in Stuart, Florida. And you don’t have to experience the headaches that come with being a landlord — DiversyFund does all the heavy lifting for you.
Real estate has historically been very stable compared to the stock market. Over the long term, investing in the stock market will earn you an average annual return of 7%, adjusted for inflation, according to a number of studies. DiversyFund can’t guarantee how its investments will perform in the future — no one can — but historically, real estate has outperformed the stock market for the past 30 years.
So you don’t need a fortune to invest in real estate. All you need to get started is $500. Sign up here to start investing today.
- Jiko accounts performed to an equivalent yield of 1.71% from Jan. 1, 2020 to Dec. 31, 2020. Past performance is not indicative of future returns.
- Cashback rewards apply to qualifying purchases only. See our Exclusive Rewards Terms for more information.
- US Treasury securities (“Treasuries”) are issued by the federal government and are backed by the “full faith and credit” of the US government. Learn more here. Past performance is not indicative of future performance. Securities investments: Not FDIC insured; No bank guarantee; May lose value.
- Subject to current limitations. Learn more here.
- In some cases, accounts may be subject to additional review to be in accordance with financial laws and regulations, including the USA Patriot Act. Additional review could take up (but is not limited) to 5 business days. You may be asked to present documentation to verify your personal information.
Jiko, owned and operated by Jiko Technologies, Inc., makes available a unique combination of financial services provided by Jiko Technologies, Jiko Securities, Inc., a registered broker-dealer, and Jiko Bank, a division of Mid-Central National Bank, Member FDIC.
Securities are offered by Jiko Securities, Inc. (“JSI”), acting as the principal carrying firm. JSI is a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”). All your securities and funds are held in an omnibus account at Apex Clearing Corporation, pursuant to the U.S. Securities and Exchange Commission Rule 15c3-3 customer protection rules. SIPC protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org.
1According to a GOBankingRates savings survey
2Round Ups automatically round up debit card purchases to the nearest dollar and transfers the round up from your Chime Spending Account to into your savings account. Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more into your savings account.