#3 – Do Doors or a Bathroom on Your Home
The housing market is battered, but many experts believe that a recovery is underway — or at least, that a bottom is being formed. Therefore, one of the best investments you can make right now is to fix up your home with the expectation of boosting your resale value.
Replacing an entry door with a midlevel 20-gauge steel door is an inexpensive upgrade for a little more than $1,000, and pays back about three-quarters of that in resale value according to industry estimates. Decent garage doors are more like $1,500 but pay back at a similar rate. A much cheaper option is to simply go with storm doors for the front and back – decent quality doors cost only a few hundred bucks apiece.
Another quick fix? Redo the vanity, faucet, mirror and light fixture in your bathroom. If the walls aren’t fully tiled slap on a quick coat of paint and presto — a weekend project that’s reasonably easy to do yourself and costs about $1,000. Bathrooms are small and thus the easiest to update.
Other DIY ideas include a coat of paint and crown molding to gussy up a living room or bedroom or laying a small area of tile — either as a floor or backsplash in the kitchen for some flair or in a bathroom with a modest footprint.
Tile, paint and door installations are relatively easy projects to do yourself. That way you don’t just save money, but have satisfaction in a job well done.
#4 – Invest in Yourself
In the words of author and web entrepreneur James Altucher, his best investment was “in either myself or people I knew very well who were building companies.” I fully believe in this notion.
If you have a knack for writing, just a few hundred bucks can get you a domain name and several months of server space for a website. If you have a knack for home improvement, take out a few ads and buy some tools, then see what happens. If you want to do wedding photography, buy $1,000 worth of gear.
The downside, of course, is that this equation is most profitable if you consider your time isn’t worth much. Those folks with a busy schedule may find the idea downright impossible because they can’t give up their “day job.” But aside from the satisfaction of being your own boss — even on a part-time or occasional basis — you may find this is the most profitable long-term investment you’ve ever made.
After all, if you build a successful business from scratch there is nobody standing between you and the profits. The sky is the limit.
#5 – Pay Down Your Debt
This is a great choice for those with student loans, a mortgage or any long-term borrowing under your belt.
Even if you have a rock-bottom interest rate of just 4% or lesson your home, over the life of your 30-year loan you will pay $1,200 for every $1,000 in principal! Car loans and student loans have shorter life spans so they are not as painful, but the bottom line is that every penny of principle creates a lot of interest payment over time.
Since paying down even a small amount of your loan early can drastically reduce what you’ll be paying down the road, you can consider a bigger principle payment an “investment.” Or in real terms if you have a $1,000 balance in personal debt on your credit card with a 10% annual interest rate, you are “earning” 10% by paying that puppy off now and avoiding the interest by carrying a balance for a year.
That’s to say nothing of the benefits you may reap through an increased credit score — and the added bonus of one less bill to pay each month.
Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at email@example.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.