If you’re lucky, you have a bit of extra cash each month or you have an influx that comes in suddenly. That added fund could be useful to you in more than one way. Consider using it to alleviate financial burdens or increase your funds for the future. The following are four ways to put it to good use.
- Improve Your Home
Over time, houses tend to increase in value, depending on the current market in your area. For many, then, the home becomes similar to a savings account. When it’s eventually sold, the place’s enhanced value brings in additional cash revenue.
With that in mind, you may take your extra money and put it back into the property. Work with professional St Louis home remodeling contractors to plan a project that you can enjoy now and boosts the market value down the road.
- Add It To Your 401(k)
While the 401(k) seems like it won’t be used for a long time, it may be precious in your older age. The more you set aside, the less stress you may have over paying bills and enjoying life during retirement. Remember that the money placed in the account isn’t taxed unless taken out, so it sits accruing interest for years.
- Create a Kids College Fund
Many parents plan for their children to attend college after high school. College could be quite expensive, requiring loans. Start putting some of that additional revenue into a college fund now to offset the cost later.
- Pay Down Your Mortgage Early
Mortgages are often pricey because of the interest added to the bank loan. If you have a bit extra each month, put it into the mortgage. Paying it off early decreases the interest you have to pay.
You could put excess money in a savings account; however, there are other options. Think about your long-term goals, and then decide how that cash could best suit your needs.