Not many people are eager to organize their finances when they are living, let alone prepare for when they die. But a good use of $1,000 is to hire an estate attorney and get your financial house in order. Most Americans, especially those with any property or investments, need a number of legal documents, ranging from trusts and wills to healthcare proxies. Financial and estate planning might not be exciting — and it could even be a bit frightening — but hiring an attorney to get your affairs in order will help reduce the stress and uncertainty over what happens to your assets in case you are incapacitated or pass on.
Want to earn a guaranteed return on your money? Pay down your debt. If you're paying interest on outstanding debt, paying it off gives you an immediate return equal to the amount of interest you would have paid. The average interest rate for accounts assessed credit card interest is about 15 percent, and some cards charge even more. With the long-term average stock market return hovering around 9 percent per year, saving 15 percent or more per year on average is a winning option.
The right home renovation is a two-pronged investment: it both serves a functional need in a house and it could actually improve the home's value. While there are limitless options for improving a home, here are five options you can choose that can cost $1,000 or less: Upgrade the lighting, replace the front door, improve the kitchen cabinets, enhance the bathroom fixtures or get a deep clean.
Some of these options can add value to your home, while others may enhance the quality of your life, which is always a worthwhile investment. These home renovations will pay you back.
A recent GOBankingRates study found that 57 percent of respondents had savings of less than $1,000. Financial services firms like Fidelity suggest that you should save at least three to six months of living expenses for a rainy day. When you have at least $1,000 in an emergency fund, you won't have to cut corners to meet unexpected expenses such as a surprise car repair or a doctor's bill, or take on high-cost debt to pay for every surprise. This can lower your financial stress level, which is another reason to consider an emergency fund to be a good investment.
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This story originally appeared on GOBankingRates.