ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to Best Use $1,000

Updated on August 17, 2017

What To Do With $1,000?

The purpose of this hub is to simply name a number of things that $1,000 can be used for to help improve your finances and have an even greater impact that spending the $1,000. No matter how hard it is not make that impulse buy, hold off for just awhile and take a look at my other uses for these funds instead.

1. Pay off credit card debt. This seems boring, but paying off debt can leave you much richer very quickly depending on the interest rate that you are paying on your debt. Pay your debts first, and then you will have more cash to spend later.

2. As Dave Ramsey lays out in his Baby Step #1, $1,000 is usually the perfect amount to rebuild or create your emergency fund. An emergency fund should consist of $1000 initially that can be used for any unexpected expenses. It should then be built up to 3 - 6 months of expenses usually ($7,000 - $10,000) as soon as your consumer debts are paid off. A specific fund for emergencies allows you to stay out of debt when life throws a curve ball in your direction.

3. If you've taken care of both #1 and #2, I suggest you add the $1,000 to your retirement IRA or use this amount to start and fund a Roth IRA. I prefer the Roth over a Traditional IRA because of the flexibility it provides in being able to withdraw contributions without a tax penalty, and you are not required to withdraw funds at a certain age like all other retirement accounts require. This allows to you to transfer an entire Roth IRA account to an heir or beneficiary.

4. Invest in your children or grand children's future by purchasing stock of a company through a DRIP. A DRIP is a dividend reinvestment plan. A DRIP is a great way to get your kids excited about investing, and it provides a cheap way to purchase stock and watch your investment grow through dividends.

5. Pay additional principal towards your home mortgage. This goes back to my first point on the importance of being debt-free, and a fully owned home gives you a larger paycheck to use however you want. The quicker the home mortgage is paid off, the less interest you are paying to the bank.

6. Use it to purchase some sort of unique investment that supports one your hobbies. For instance, I enjoy collecting coins and antiques. I would consider the purchase of a nice silver coin a worthwhile investment for both my hobby and the potential for a return on my investment in years to come.

7. Pay off any remaining balance such as that on a car or student loans.

8. Use the $1,000 to make monthly budget adjustments where needed. For instance, if one expense category of your monthly budget consistently goes over, then allocate this amount to the whole year and increase that category by that amount per month.

Will you implement any of these ways to use $1,000?

See results


    0 of 8192 characters used
    Post Comment
    • profile image


      6 years ago

      When I saw the title of this Hub, I expected to see a bunch of frivolous things to do with money, I'm happy to see some solid, practical ideas about how you can use your refund to help you get ahead in the longterm.

    • wowsite1234 profile image


      6 years ago from Moncks Corner, SC

      Some good ideas on how to spend your tax refunds! I was fortunate enough not to have any debt at the beginning of the year so I went crazy with it, now I'm regretting it (lol). Great Hub!

    • Dolores Monet profile image

      Dolores Monet 

      6 years ago from East Coast, United States

      Great tips on what to do with tax refunds. Paying down debt seems a great way to go. I may purchase a new stove - mine is in real sad shape and is electric so may switch to gas, spending money to eventually save money.

    • Kulsum Mehmood profile image

      Dr Kulsum Mehmood 

      7 years ago from Nagpur, India

      Very good hub and good suggestions about spending that tax refund money.

    • bankscottage profile image

      Mark Shulkosky 

      7 years ago from Pennsylvania

      Nice Hub. Good suggestions for people to follow. I look forward to the additional suggestions.

      Taxpayers can remove the temptation to spend all of their refund when they get it. You can use Form 8888 to split your refund into up to 3 accounts. The accounts have to be registered to the taxpayer and should be set up before filing your taxes.

      You can split your refund among accounts that include, savings, checking, or mutual funds or brokerage accounts (think IRA). Form 8888 can also be used to purchase US Series I Savings Bonds. You can check out my recent hub on the use of Form 8888.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)