It may be exciting when you find an extra $20 in your purse, jacket or obtain it some other way. $20 may not seem like a lot but before you head to the mall or restaurant consider things you can do to make the $20 worth more in the future.
Emergency fund
It is advised to have at least 8 months of expenses saved for an emergency fund, for unexpected expenses such as a job loss or medical expenses. If you have a “rainy day” fund it may reduce your need to use your credit card for these unexpected expenses. $20 may not seem like a lot but if you don’t have any thing in savings every little bit helps. With the power of compound interest, your money will continue to grow over time. The earlier you can start saving, the less money you will need to put away because it has more time to grow.
Start Investing
You don’t need to have a large sum of money available to start investing. With any kind of saving you have the power of compound interest on your side. One of the best ways to invest small amounts of money is through Dividend Reinvestment Plans (DRPs), also known as Drips. DRPs and DSPs (Direct Stock Purchase Plans) allow you to bypass brokers and their commission by buying stock directly form companies and their agents.
More than 1,000 major corporations offer these types of stock plans, many are free or with fees low enough to make it worthwhile to invest as little as $20 or $30 at a time.
Cook at Home
You could spend $20 on groceries and cook a number of meals for the price of one or two meals at a restaurant. You could invite friends over and cook a meal together for less than you would spend each buying drinks and a meal dining out.
If you don’t know how to cook, you may be able to take cooking lessons that will help you save money in the future. Many areas offer community education cooking classes that are affordable.
Brighten you Home or Apartment
You may be able to find an item or two to refresh your home décor. Anything as simple as a new candle or vase could brighten your environment. Look for items in a bright or bold cooler that matches your décor.
Twenty dollars may not seem like a lot, but there are some ways you can use it to increase in value.