When we have several thousand dollars just sitting around it’s not always the smartest thing to just go ahead and pay off your debts but people do recommend you to do so. Personally I think it’s better to invest and slowly pay off your debt than to pay off your debt right away because when you do need the money, you’ll just put yourself in debt once again. Here are a few ideas:
Start a Business
If you’re interested in being an entrepreneur then why not start your own business? There are many different things you could do and there’s no reason to do anything that’s a new way of doing things. Sometimes the older ideas work better than having brand new concepts. People do things that have been proven to make money. Internet businesses are just standard businesses but with a world-wide interface. Do things you’d normally do in a business but use the internet to innovate how you do it.
Invest in other business ideas
Businesses become successful only with some support from the outside community and sometimes they need investors. You could do that, invest for a small percentage of their business or a high return of interest. Sometimes it’s smarter to do the latter because the business might fail in the long run however if the business is a great idea and you feel confident that having a percentage will pay you off much more than the high interest rate in the long run, it’s a better idea.
Some people prefer to invest into CDs and feel safer doing it that way. CDs are not complicated but have a minimum to invest in them. Sometimes they do have a maximum as well so be sure to do your research and figure out which CD would fit your needs best. The time period for the CD is also set so when you put money into a CD, often times you can’t take it out. Don’t put too much money into a CD because you might need that money before the CD is done.
Pay off Student Loans/Debt
If you are absolutely not sure what you want to do with that money, the best bet is paying off your student loans or debt. If you want to pay off or reduce what you owe, you’ll have lower monthly payments and that’ll help you in the long run. If you don’t have any debt then just put your money somewhere safe until you decide what to do with it.