#4: Pay Down Your Debt
This is a great choice for those with student loans, a mortgage or any long-term borrowing under your belt.
Paying down even a small amount of your loan early can drastically reduce what you’ll be paying down the road. And in the case of credit card debts and other short-term loans with higher rates, the payoff is even bigger and more immediate.
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.
If you had a hard time scraping together $1,000 because of your debt load, it might not be very satisfying to simply use that right away to pay more bills … but remember that the lower your bills next month, the more money goes back into your pocket.
And if you’re smart, that extra cash will pay down even more debt — or if your debt is manageable, then that cash will give you the platform to start investing.