Depending on what your financial situation is, an extra $100 can mean different things to different individuals. It may not seem like a lot but it can be a good start to making a difference in your financial life. Here are some things to do with $100.
Open a College Savings plan
You may think a $100 cannot make a difference but saving $100 a month for 20 years at seven percent rate of return could add up to $52,092. A 529 College Savings plan that is offered by many states can be opened for under $100.
Emergency fund
$100 is a good start to an emergency fund or to be used to boost up an existing “rainy day” fund. It is advised to have at least 8 months of expenses saved in case you find yourself facing an emergency such as job loss or medical expenses. If you have an emergency account it will reduce the need to rely on credit cards and other sources for unexpected expenses.
Pay Down Your Debt
If you do have credit card debt, put the $100 towards it. If you have considerable debt, $100 may not seem like it will help but every little bit can make a difference
Buy Cooking Supplies
One of the easiest ways to cut your expenses is to cook more meals at home and take your lunch to work. You can purchase groceries for a number of meals for the same amount that you would spend on one meal at a restaurant or take out.
Open a Roth IRA
If you haven’t started saving for retirement yet, you can start with $100. As with college savings, any amount can add up over time and the power of compound interest.
Open a Certificate of Deposit
If you have money saved that you will not need for a certain amount of time, consider opening a certificate of deposit (CD). A CD provides better return on your money than a savings account. One thing to keep in mind is whether you will need the money while it is in the CD. In most cases you will pay a penalty for withdrawing the money during the period it is in the CD.
Making minor home repairs
Your home may be your largest asset. Making minor repairs or changes when you have money saved can help you keep your home well maintained. Some issues such as leaky pipes should be fixed before they cause more damage.
$100 may not seem like a lot of money, but there are some smart things you can do with it that will make it worth more in the future.