As the end of the year rolls around, you may have some cash to spare — perhaps an annual bonus from your employer or money you’ve been stashing away to give to charity or buy holiday gifts.
Whether you want to improve your savings and investments, make smart charitable donations, boost your career, upgrade your home or treat yourself to a vacation, we’ve found great ideas to use a thousand bucks.
Invest it
Create a one-and-done portfolio. The slogan “VTI and Chill” has reached meme status on Reddit, YouTube and other websites. It suggests that all you need to do is stash money in Vanguard’s Total Stock Market exchange-traded fund (VTI) and then leave it untouched. Variations substitute Vanguard’s S&P 500 ETF (VOO) or its Total World Stock ETF (VT). The index funds make fine core stock holdings, though the meme arguably takes a simple, buy-and-hold philosophy to an extreme.
Jon Luskin, a San Diego–based certified financial planner, says to truly “chill” over a long investment horizon, choose a target-date fund, which adds bonds and cash to the mix and automatically becomes more conservative over time. He likes iShares LifePath ETFs. The series of 10 funds charges an average 0.1% in annual expenses; returns for six of the 10 rank in the top 40% of their categories for the year to date through September.
Take a moonshot. Consider a “moonshot” on a high-risk but potentially rewarding investment on the bleeding edge of technology. Limiting your investment to $1,000 is a good idea with these more-speculative offerings.
One literal moonshot stock is Rocket Lab USA (RKLB, $10), which launches satellites into space. As a pioneer in the nascent commercialization of space, Rocket Lab is not yet profitable. But CFRA Research analyst Keith Snyder notes the company has a $1 billion order backlog. He projects revenue growth of 73% in 2024 and 38% in 2025. On average, analysts who follow the company expect it to reach profitability by 2027.
To spread your risk, consider an ETF that bets on many companies. SPDR S&P Kensho New Economies Composite (KOMP, $49) is a member of the Kiplinger ETF 20, the list of our favorite ETFs. The fund, investing in trends such as automation, artificial intelligence, cryptocurrency and energy-efficient tech, returned 26% for the year ended September 30.
Remember, money invested in moonshots should be money you can afford to lose. And patience is key. “It takes time to monetize transformational products, so investors should be comfortable holding these investments for decades, not days,” says Minnesota financial planner Ryan Nelson.
Hire an adviser. Although many financial pros charge hefty fees, at least 2,000 financial advisers charge by the hour, and their median hourly rate is $250, according to industry analyst Michael Kitces. Brie Pio, a certified financial planner in Rockport, Maine, who charges $250 per hour, says it takes two to four hours to help people choose options for their retirement portfolio, for example. Find hourly advisers on platforms such as the XY Planning Network and the Garrett Planning Network.
Or hire a robot to manage your portfolio. Several advisers that are highly rated by Condor Capital Wealth Management’s Robo Report require minimum investments of $1,000 or less. Contribute at least $1,000 and fill out a questionnaire, and Merrill Guided Investing’s computer algorithms will construct a growth-oriented portfolio of ETFs for a 0.45% annual management fee. SoFi, a good choice for younger investors because of its aggressive and low-cost portfolios, will let you start with as little as $1 and no management fee. Fidelity Go requires no minimum investment, builds portfolios of no-cost index funds and charges no management fee for portfolios under $25,000.
Sharpen your savings strategy
Plump your emergency fund. If your rainy-day fund is falling short (you should have at least three to six months’ worth of living expenses in it), setting aside an extra $1,000 now could come in handy if you someday face a large, unexpected bill, such as for a hospital stay or car repair.
Look for a savings account or money market deposit account that’s free of maintenance fees and has a low (or no) minimum-balance requirement. Interest rates are on the decline and are likely to fall further as the Federal Reserve continues its campaign to cut rates.
But you can still seek out accounts with much higher yields than the national average of about 0.6% in late September, according to Bankrate. The money market account from online institution Vio Bank, for example, recently offered a 5.2% yield on all balances. You can also search for high-yielding accounts at depositaccounts.com.
Make catch-up contributions. There are upsides to aging, and we’re not just talking about matinee discounts. If you’re 50 or older, you can contribute an extra $1,000 to your traditional or Roth IRA beyond the standard $7,000 limit for those younger than 50 in 2024, for a total contribution of $8,000.
If you own a health savings account and are 55 or older, you can contribute an extra $1,000 to your HSA beyond the standard limit of $4,150 for self-only coverage and $8,300 for family coverage for 2024. HSAs provide an effective and tax-advantaged way to save for health care costs in retirement.
Fund a Roth IRA for a child or grandchild. A retirement account contribution may not be at the top of your child or grandchild’s holiday wish list, but they’ll thank you later. If the youngster had earned income during the year, you can contribute to a Roth IRA on his or her behalf. (The contribution is limited to the amount the child earned for the year or the standard annual IRA contribution limit, listed above — whichever is lower.)
Setting up a Roth will help your child or grandchild develop good savings habits at a young age and could provide him or her with a sizable retirement nest egg — especially if the child continues to contribute. For example, if a 15-year-old stashes away $1,000 a year for the next 50 years, the account will be worth more than $308,000 when he or she turns 65, assuming a 6% annual rate of return. Though you should encourage the child to let the money grow, the amount of contributions can be withdrawn at any time, tax- and penalty-free (investment earnings are usually subject to taxes and penalties if withdrawn before age 59½).
Pay the tax bill on a Roth conversion. There are lots of compelling reasons to convert some of the funds in your traditional IRA to a Roth. Once converted, the money will grow tax-free and provide a source of tax-free withdrawals in retirement. Money invested in a Roth will be insulated from future tax increases — and many analysts believe tax hikes are likely, given the growing U.S. budget deficit. Deploying $1,000 from your other savings sources to pay the tax bill will help you to avoid using funds from your IRA (or minimize the amount used) to pay taxes on the Roth conversion, which would reduce the amount available to invest in a Roth.
Consider consulting with a certified financial planner to determine how much you can afford to convert without moving into a higher tax bracket, keeping in mind that you can convert additional funds in the future.
Reap a credit card bonus
Many rewards credit cards offer a heap of extra cash back, points or miles if you spend a certain amount within the first few months of card membership — and with some cards, the spending requirement is $1,000. The Bank of America Travel Rewards card, for example, offers 25,000 points — worth $250 in statement credits for travel or dining purchases — if you spend $1,000 within 90 days of opening the card. The card’s standard rewards payback is 1.5 points per dollar on all spending.
Or check out the Bank of America Customized Cash Rewards card. If you spend $1,000 within 90 days of opening the account, you’ll get $200 cash back. The card’s everyday rewards include 3% back in one category of your choice — travel, dining and online purchases are among the options — and 2% back at grocery stores and wholesale clubs (the 2% and 3% rewards are limited to a combined $2,500 in quarterly spending). All other purchases earn 1% back.
With the Wells Fargo Autograph card, you’ll get 20,000 bonus points (a $200 cash value) if you spend $1,000 within the first three months of signing up. The card’s ongoing rewards include three points for every dollar you spend on gas, restaurants, travel, streaming services, transit and phone plans. Other spending earns one point per dollar.
Be charitable
Contribute to a donor-advised fund. A donor-advised fund is similar to a charitable foundation with one significant difference: You don’t need a lot of money to set one up. These funds allow you to donate now, deduct the contribution on your tax return (if you itemize) and decide later which charities you want to support. Donor-advised funds from Fidelity Investments and Charles Schwab have no minimum investment. (Kiplinger readers who use donor-advised funds rated Fidelity Charitable mostly highly in our 2024 Readers’ Choice Awards.)
Once you’ve set up your fund, you can continue to make contributions as cash becomes available. Most donor-advised funds also accept contributions of appreciated stock, so if your $1,000 consists of shares of a stock you bought long ago, you can donate them to your account. You won’t have to pay capital gains taxes on the appreciated stock, so you’ll get a tax break even if you don’t itemize.
Support a local charity or cause. A $1,000 donation can go a long way with local organizations, which often use the funds to benefit your community. If you don’t have a particular group in mind — say, a volunteer fire department, animal shelter or food bank near you — you can browse local nonprofits by entering your city and state at greatnonprofits.org.
Another idea: Enter your ZIP code at donorschoose.org to see whether educators in your area are looking for donations to fund classroom projects.
Help hurricane victims. Within just two weeks this fall, hurricanes Helene and Milton struck the southeastern U.S., bringing floods and damaging winds, claiming lives and destroying property. Although supplies such as clothing and food can be useful in the aftermath of a disaster, many organizations prefer cash donations. The Federal Emergency Management Agency states, “Financial contributions to recognized disaster relief organizations are the fastest, most flexible and most effective method of donating.”
Before you give money to a relief organization, make sure it’s not a scam outfit that’s posing as a charity. You can look up organizations with the Better Business Bureau’s Wise Giving Alliance or at CharityNavigator.org. Charities to consider include the American Red Cross, Salvation Army, North Carolina Disaster Relief Fund and Florida Disaster Fund.
Improve your work life
Get professional headshots. Updating your LinkedIn profile with a professional headshot can help you make a good impression on potential employers. A typical headshot photo shoot can range anywhere from $250 to $2,000, depending on your location and the photographer. If you have some room left in your $1,000 budget, tack on another $50 to $350 to get your hair and makeup done, too.
At photographer.org, you can search for photographers in your area who specialize in business photography and headshots. Or try joining a Facebook group for local photographers and creating a post describing what you want and how much you’ll pay.
Take continuing-education classes. If you want to grow in your current field or just learn something new, look into continuing-education classes. Enhancing your skills may help you negotiate a raise with your boss — or make you more attractive to prospective employers if you’re in the market for a new job. (Before you pay for classes, check whether your employer offers education assistance.)
Costs vary, but you can find options for about $1,000. For example, the University of Pennsylvania’s Wharton School offers an online leadership and management certificate program, and each course is $995. Courses within Wharton’s asset and portfolio management certificate, with topics including asset allocation and investment products, are each $1,000.
As you explore online programs, you can verify that an institution is legitimate by searching for it with the Directory of Accredited Institutions.
You can also investigate online services such as LinkedIn Learning, Pluralsight Skills or Treehouse. All of them offer monthly subscriptions that provide you access to a variety of courses and programs. A Treehouse plan that includes advanced coding courses, for example, is $49 a month or $490 for an annual plan.
If you prefer in-person classes, see what community colleges or other institutions near you offer. At careeronestop.org, click on “Find Local Help” and then “Community College Finder” to search for colleges in your area.
Stand up at your desk job. You’ve probably heard it by now: Sitting all day long isn’t so good for you, potentially raising the risk of diabetes, heart disease and other health issues. It can also lead to stiff and sore joints. Using a desk that smoothly transitions from a sitting position to standing allows you to stretch out your legs while you type or take meetings.
On Wayfair.com, the L-shaped Gracie Oaks Magomed 72-inch Desk recently ran about $1,000. The desktop adjusts to standing heights of 37 inches, 40 inches and 43 inches, and when you’re ready to rest, you can easily return it to a height that suits a seated position. The desk also has two drawers and a hutch with cabinets and adjustable shelves.
Looking for something with a smaller footprint? Check out the UPLIFT Curved Corner Standing Desk ($999), which adjusts between seated and standing positions and has a vertical movement range of about 25 inches.
Make upgrades at home
Get a stainless-steel cookware set. If your collection of pots and pans could use a refresh, consider buying stainless-steel cookware. Professional chefs prefer stainless steel because it distributes heat evenly. Plus, it’s free of coatings that contain PFAS — the “forever” chemicals that have been linked to certain cancers. The All-Clad D3 10-Piece Stainless Steel Cookware Set was recently $700 at Amazon and Williams Sonoma. You can use the cookware on any stovetop — including induction — and safely put it in the oven at temperatures of up to 600 degrees.
With a few hundred dollars to spare, you could pick up an extra pan or two to round out your collection. If you want a larger skillet than the 8- and 10-inch ones provided in the 10-piece set, for example, you could recently get the D3 Stainless 3-Ply Bonded Cookware 12-Inch Fry Pan for $130.
Level up your coffee game. For a basic cup of joe, a drip coffeemaker does the job just fine. But java enthusiasts looking to concoct lattes, cappuccinos and other drinks may want to invest in an espresso machine that includes a steam wand to heat and froth milk. The $900 Breville Barista Express Impress, for example, has an integrated steam wand and burr coffee grinder, and it manages the temperature, water pressure and amount of ground beans to produce café-worthy beverages.
With any extra cash, buy some high-quality coffee beans. With Atlas Coffee Club, you can subscribe to receive by mail one or more bags of coffee, sourced from around the globe, every two or four weeks. Recently, you could get two 24-ounce bags for $16 per shipment.
Let there be light. As your eyes age, you may need to adapt your home’s lighting to minimize glare as well as brighten areas where you perform tasks, such as preparing meals. Depending on the price of the fixtures, within a $1,000 budget you may be able to add under-cabinet or pendant lighting in your kitchen to better illuminate your countertops, put up wall sconces that have shades or coverings to reduce glare in your dining or living areas or get an adjustable lamp for activities such as reading or sewing. The typical price to have an electrician install a light fixture is about $75 to $300, according to TaskRabbit, an online marketplace for finding a local handyman or other providers.
Get away from it all
Ski with an Epic or Ikon pass. A season pass from one of the two major ski conglomerates, Vail Resorts’ Epic Pass or Alterra Mountain Company’s Ikon Pass, grants you access to countless top-tier ski resorts all over the world. Prices for the passes change frequently, becoming more expensive and/or offering fewer perks as the ski season approaches, so the best time to buy is in the spring for the following ski season. Both passes also offer financing options to secure the lowest price in the springtime and pay in full around Labor Day.
Although prices and offerings shift somewhat from year to year, Epic’s best value pass, the Epic Local Pass, typically sells for about $800 in the spring and offers access to more than 30 resorts around the U.S. — including Breckenridge, Park City and Vail — and eight resorts in Canada, Japan and Switzerland. Typically, if you buy before Memorial Day, you also get Buddy Passes and Friends and Family Passes, which are discounted lift tickets for friends. At epicpass.com, you can keep an eye out for the latest pass price and deadline announcements.
The Ikon Pass gets you access to Palisades Tahoe, Mammoth Mountain, Steamboat and Big Sky in the U.S., France’s Chamonix-Mont-Blanc and more. Prices typically start at just over $1,000 and also include discounted passes for friends and family. Monitor ikonpass.com for pass price deadlines and announcements.
Embark on a cruise. While most cruises will cost you upward of $1,000, you can occasionally find a good deal — even in the peak season. For example, a round-trip, week-long Celebrity cruise departing Fort Lauderdale, Fla., in early February and sailing through the Western Caribbean was recently available starting at $874. The fare also includes an onboard credit of up to $500, which can be used toward additional expenses such as dining, spa services and excursions. To find current cruise offerings for under $1,000, try browsing deals at Shermans Travel.
Book a retreat. Retreats encourage personal growth, foster genuine connections with like-minded people, and are often even more focused on de-stressing and relaxation than a typical vacation. At BookRetreats, you can browse a diverse group of retreats around the globe and filter for those with a price tag of less than $1,000.
A nine-day writers’ retreat in Montbernard, France, for example, starts at $769 and includes writing coaching and locally sourced, seasonal farm-to-table meals for you to enjoy at your desk, in the dining room or on the open-air terrace. Or, at a price starting at $935, you could go to Sayulita, Mexico, for a five-day retreat focused on nervous-system regulation and stress management. During this retreat, located at an oceanside villa by the Sierra Madre mountains, you can try breathwork, functional movement classes and a traditional Mexican temazcal, a type of sweat lodge that originated with indigenous peoples in Mesoamerica and promotes health and spiritual healing.
Buy some peace of mind
With $1,000, you can purchase a collection of products to protect you and your loved ones, prevent damage to your home and keep tabs on items that are easily lost.
Summon help after a fall. Every year, one-fourth of people age 65 and older fall, according to the Centers for Disease Control and Prevention. Many smartwatches function as fall-detection monitors that can send alerts to emergency contacts if the wearer falls. You can also use a smartwatch that is connected wirelessly to your phone to make calls — useful in an emergency if the phone isn’t in reach. The Samsung Galaxy Watch6 with a 40-millimeter case, for example, includes these features and was recently about $200. Various models of the Apple Watch detect falls, too. The Apple Watch SE starts at around $250.
Prevent home fires. Have you or a loved one ever forgotten to turn off the stove? Cooking is the leading cause of home fires, according to the National Fire Protection Association, and unattended cooking was the leading factor contributing to cooking fires. An iGuardStove device automatically turns off the stove if it’s left unattended for too long. Depending on the type of stove and other factors, these devices cost as little as about $500.
Catch leaks. A water leak that isn’t addressed promptly could wreak havoc on your home. By placing a leak detector in your basement or anywhere else a leak may develop, you’ll be alerted to leaks before they cause significant damage. The $50 Moen Smart Leak Detector notifies you by phone, e-mail or text (or through Moen’s phone app) if it senses the presence of water, extreme temperatures or high humidity.
Track your stuff. You can monitor the location of your belongings — say, your keys or wallet — with electronic tracking devices. A four-pack of Apple AirTags is $99, and a four-pack of Tile Mates is about $80.
Make your home smarter
Outfitting your home with smart devices can provide security, make life more convenient and even save you money on energy costs. Louis Ramirez, deals editor-in-chief at tech-review site Tom’s Guide, recommends these gadgets, which tally about $1,000 total (you may spend even less if you catch them on sale).
Blink Whole Home Bundle ($200). This kit includes two security cameras — one for your home’s exterior and one you can use indoors — a video doorbell and the Sync Module 2, which connects with your other Blink devices over Wi-Fi and stores video from your Blink cameras.
Amazon Smart Plug ($25). This device, which is enabled with Amazon’s Alexa voice assistant, plugs into an electrical outlet. Then you can plug appliances, lamps and other gadgets into it. “I have these throughout my house so I can easily turn lights on and off via voice commands,” says Ramirez. “You can also use the plug to turn on and off your coffee machine, fan and more.” You’ll need to pair the smart plug with an Alexa device, such as the Echo Dot smart speaker.
Echo Spot ($80). An Alexa-compatible alarm clock, the Echo Spot is “the perfect bedroom companion,” says Ramirez. “We like that it’s stylish, has a vibrant and customizable display, and doubles as a smart speaker.”
Echo Hub ($180). The Echo Hub is a wall-mounted, 8-inch control panel that lets you monitor and manage your home’s Alexa-enabled devices. “You can view live snapshots of your security cameras, adjust your smart light’s settings or even change the temperature of a room,” says Ramirez.
Ecobee3 Lite smart thermostat ($145). Control this Wi-Fi-enabled thermostat from anywhere with an Android or Apple device. If you connect it to Ecobee’s SmartSensors, you can place them in other rooms throughout your home so that the thermostat can better manage hot and cold spots and balance the temperature.
iLife V3s Pro Robot Vacuum ($160). Tom’s Guide deems this the top pick among budget robot vacuum cleaners. “In our testing, we found that it does especially well with picking up pet hair,” says Ramirez.
Blueair Blue Pure 311i Max air purifier ($229). This air purifier is suitable for spaces of up to about 1,800 square feet, and it connects to the Blueair app so you can schedule its use and monitor the quality of your air remotely.
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
