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Imagine what life could be like with an extra $1000 each month.
The possibilities are endless.
From padding your savings account and investing to buying the latest gadget on the market, financial freedom can feel almost natural with this influx of cash.
Having a cushion opens up so many creative avenues.
You no longer worry about budgeting for that much needed night out or saving up for those tickets to your favorite concert months in advance.
That said, figuring out the best use of these funds is not always easy.
That’s why we’re here to help you explore some interesting ideas on how to make the most out of the extra $1,000 every month!
#1. Pay Off Debt
An extra $1,000 a month goes a long way, especially when you have debt.
Many people would use that money to pay off debt that they’ve defaulted on and work towards getting caught up on existing debts.
Some of the most common debts people would pay off first include student loans, credit card bills, and car loans, to name a few.
#2. Build Their Savings
Inflation and economic stagnancy have made it much harder for people to live on the same amount of money that they used to.
Unfortunately, it’s also made it difficult to put money away so that people can work towards their goals or stay prepared in case of emergencies.
This is why building savings would be one of the top activities if people had access to an extra $1,000 every month.
#3. Spend More Time With Loved Ones
Not everyone who works hard is necessarily compensated for what they should be getting.
Because of this, people need to work long hours regularly to get their hands on the money they need to survive.
For many, an extra $1,000 a month would be life-changing, allowing them to spend more time with their loved ones and treat them to things they might not be able to with the money they’re currently earning.
#4. Stress Less
Living on a low income can produce several adverse side effects, but arguably one of the worst is chronic stress.
Chronic stress can do a number on both physical and mental health, and the burnout that comes with it makes it harder to get work done and navigate daily life.
One of the most significant impacts that an extra $1,000 a month would have on the lives of those getting it would be that they could stress less.
They would have more room in their budget, less anxiety about their finances, and more time to relax.
#5. Get Their Teeth Fixed
It’s no secret that healthcare is unaffordable for most in the U.S.
But while healthcare is often highlighted, dental care might not be as discussed.
The reality is that dental care is often less accessible and more expensive than healthcare, especially if you haven’t been able to get proper care for a while and your oral health isn’t as good as it should be.
While it will take a bit to save up the thousands needed, many people agreed they would use the extra money to fix their teeth.
#6. Get Their Hair Cut and Colored Professionally
Hair care can add up quickly, especially when you’re a woman.
A good cut and color at a professional salon can easily cost over $100.
Add this up each time you need to get it done, and that’s a nice chunk of change stashed away.
There are a lot of women who do this on their own at home who would gladly use the extra $1,000 each month to get it done instead of having to do it all themselves.
They’d still have a ton of money for all kinds of things.
#7. Reach Out to a Therapist
We’ve already covered healthcare and dental care.
But what about mental health care?
The reality is that resources in the mental health space are often hard to find, very expensive (if you can’t find a therapist that works on a sliding scale or free resources), and may result in additional costs (specialists, medications, etc.).
Even though it’s essential, it’s often out of reach financially for many.
Whether it’s getting their own care or helping someone else, plenty of people would use the extra $1,000 to access mental health support.
#8. Make Mortgage Payments Ahead of Time
Mortgages are more desirable to those stuck renting because they’re often cheaper than rental payments.
Still, affording a mortgage can be tricky, and missing payments means losing your home.
Rather than falling behind or remaining stagnant, some wish to leverage the extra $1,000 they would receive to get ahead on their mortgage payments.
This would give them greater peace of mind knowing they’re chipping away at their loan to own their house outright and reduce overall costs.
#9. Move Somewhere and Retire
$1,000 a month is a great bonus.
Some would put it towards various wants and needs, but others have become more crafty.
Some have said that they would take that money and retire.
Likely a place that’s both nice and has a much lower cost of living, like the Phillippines.
Even though $1,000 isn’t much here in the U.S., the dollar would stretch further.
#10. Get Laser Eye Surgery
Optical care is expensive, especially throughout life, as you get new lenses and glasses.
Sometimes, people may not even like the look and feel of glasses.
This is why laser eye surgery was a response for some.
It’s a reasonably affordable procedure, super quick, and would make it so that they wouldn’t have to wear glasses or contacts to see the world around them.
#11. Upgrade to a Better Living Situation
Depending on how much you’re spending on rent, an extra $1,000 could make all the difference.
Some respondents immediately said they would spend money finding a better place to live.
With that extra $1,000, they could get some new furniture and other essentials.
#12. Work Fewer Hours
This ties in with spending more time with family and less stress, but many people called this out specifically.
With more money in the bank, they could step away from spending so many hours on side hustles or their full-time job to relax and do whatever they wouldn’t otherwise be able to.
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This thread inspired this article.
I have over 15 years experience in the financial services industry and 20 years investing in the stock market. I have both my undergrad and graduate degrees in Finance, and am FINRA Series 65 licensed and have a Certificate in Financial Planning.
Visit my About Me page to learn more about me and why I am your trusted personal finance expert.