If You Have More Than $1,000 in Your Checking Account, Make These 6 Moves

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You’ve done it. You’ve built up a little cushion in your bank account — $1,000! It feels good, right? Those days of checking your account balance in a panic are behind you.

Congrats! You’re on the right path. Now it’s time to think about some longer-term goals. What do you want to accomplish next with your money? Do you need to save more? Do you want to buy a home someday? Invest?

What’s the next step you should take? What are some specific things you can do to take your finances to the next level?

We’ve got some ideas for you:

1. Invest in Real Estate (Even if You’re Not a Millionaire)

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The stock market can be a scary place. Stock prices shoot up and down like a roller coaster ride, and who knows when the whole thing might crash?

It would be nice to diversify and invest some of your money in real estate, but don’t you have to be wealthy to do that?

Now you can invest like the 1% does, and all you need to get started is $500. A company called DiversyFund will invest your money in commercial real estate — specifically, in apartment complexes that it owns — and you only need $500.

Real estate can potentially earn you more money than the stock market. Over the long term, investing in the stock market will earn you an average annual return of 7%, adjusted for inflation, according to a number of studies. DiversyFund can’t guarantee how its investments will perform in the future — no one can — but historically, it has earned an annual return of 17% to 18%.

So you don’t need a fortune to invest in real estate. All you need to get started is $500.

2. Spend $5 to Own a Piece of Amazon, Google or Other Companies

Take a look at the Forbes Richest People list, and you’ll notice almost all the billionaires have one thing in common — they own another company.

But if you work for a living and don’t happen to have millions of dollars lying around, that can sound totally out of reach.

That’s why a lot of people use the app Stash. It lets you be a part of something that’s normally exclusive to the richest of the rich — buying pieces of other companies for as little as $1.

That’s right — you can invest in pieces of well-known companies, such as Amazon, Google or Apple, for as little as $1. The best part? When these companies profit, so can you. Some companies even send you a check every quarter for your share of the profits, called dividends.

It takes two minutes to sign up, plus Stash will give you a $5 sign-up bonus once you deposit $5 into your account.

3. Leave Your Family $1M

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Oh, to be a millionaire. Look, not all of us have the money to set up trust funds for our loved ones. But you could still leave them up to a $1 million in life insurance — and you don’t even need to have the money in the bank.

You’re probably thinking: I don’t have the time or money for that. But this take minutes — and you could leave your family up to $1 million with a company called Bestow.

We hear people are paying as little as $8 a month. (But every year you wait, this gets more expensive.)

It takes just minutes to get a free quote and see how much life insurance you can leave your loved ones — even if you don’t have seven figures in your bank account.

4. Cancel Your Car Insurance

If you need to free up some extra room in your budget, one of the easiest places to start is to cut back on your monthly bills — like your current car insurance.

In most places, it’s straight up illegal not to have it, so you’ve probably accepted that you’re going to pay through the nose for it. But you don’t have to.

A free website called Savvy will help you find the best rates — in just 30 seconds. In fact, it saves people an average of $826/year.

All you have to do is connect your current insurance, then Savvy will search hundreds of insurers for a better price on the same coverage. It’ll even help you cancel your old policy and get you a refund from your current insurer. Best yet: This is totally free.

If you find a better deal, you can switch right away and don’t have to wait for your next renewal or even your next payment.

5. Invest in Fine Art (Even if You’re Not Wealthy)

The stock market has been awfully scary lately, with stock prices bouncing up and down, erasing entire fortunes in a day. It would be nice to diversify and invest some of your money in something different like fine art, which regularly outperforms the stock market… But don’t you have to be wealthy to do that?

Not anymore. A company called Masterworks is making investing in multimillion-dollar artwork accessible for regular folks like us. It lets you buy shares of valuable historical masterpieces — and instead of needing to have $1 million on hand, all you need is $5,000 to get started.

Blue-chip artwork can potentially earn you more money than the stock market. Over the long term, investing in the stock market will earn you an average annual return of 7%, adjusted for inflation, according to a number of studies. But Masterworks only buys art by established artists like KAWS, Monet or Warhol, who have historically demonstrated a 10% to 25% price appreciation.

It typically holds onto works for three to seven years or longer before selling them. When the art sells, the profits are divided among the investors, and that’s when you get your cut. Or you can flip your shares on their Secondary Market before the painting sells. 

To get started, request an invitation to become a member.

6. This Savings Account Pays 23 Times the Average Interest

We’ve found a smart place to stash your savings. It’s a high-yield online savings account that pays more than 20 times the interest you’d get from most brick-and-mortar banks. Also, it won’t charge you any fees.

The American Express Savings Account®* pays you a highly competitive interest rate on your money, at 1.70% annual percentage yield (APY)**. That’s way better than the industry average of 0.09% reported by the FDIC in January 2019.

The account makes it as easy as possible, too. Setting up an account online is quick and simple. There’s no minimum balance requirement and no fees, so you don’t have to worry about that. To save automatically, you can have part of your paycheck direct-deposited to your savings account or schedule automatic transfers of money from your checking account.

In Amex’s savings calculator, enter how much you’d deposit each month to see how much interest you could earn over time.

To make sure you aren’t tempted to spend, you’re limited to six withdrawals or debits per month, which is pretty standard for a savings account.

*The Penny Hoarder is a Paid Affiliate/partner of Stash. This material is not intended as investment advice and is not meant to suggest that any securities are suitable investments for any particular investor. Investment advice is only provided to Stash customers.

**You’ll also bear the standard fees and expenses reflected in the pricing of the ETFs in your account, plus fees for various ancillary services charged by Stash.

Masterworks disclaimer:

NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED, AND IF SENT IN RESPONSE, WILL NOT BE ACCEPTED.

NO OFFER TO BUY THE SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE CAN BE RECEIVED FOR AN OFFERING UNTIL THE OFFERING STATEMENT FILED BY THE COMPANY WITH THE SEC HAS BEEN QUALIFIED BY THE SEC. ANY SUCH OFFER MAY BE WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OR COMMITMENT OF ANY KIND, AT ANY TIME BEFORE NOTICE OF ACCEPTANCE GIVEN AFTER THE DATE OF QUALIFICATION.

AN INDICATION OF INTEREST INVOLVES NO OBLIGATION OR COMMITMENT OF ANY KIND.

AFTER THE OFFERING STATEMENT FOR A PARTICULAR OFFERING HAS BEEN PUBLICLY FILED YOU MAY OBTAIN A COPY OF THE PRELIMINARY OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT HERE.