Best use of $3,000 that is saved for a class in March 2022

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Topic Author
NostraHistoria
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Best use of $3,000 that is saved for a class in March 2022

Post by NostraHistoria »

What do you think is the best use of $3,000 that I need to pay for a class in March 2022? Invest in a bond index fund?

I am a substitute teacher right now and my income is limited.
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123
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Re: Best use of $3,000 that is saved for a class in March 2022

Post by 123 »

CD or High Yield Savings Account (like Ally Bank)

I'm guessing you don't want any risk of a decline in value.
Last edited by 123 on Sat May 08, 2021 1:32 pm, edited 1 time in total.
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RMO87
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Re: Best use of $3,000 that is saved for a class in March 2022

Post by RMO87 »

Less than a year away? Focus on safety. A money market fund sounds ideal.
Topic Author
NostraHistoria
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Re: Best use of $3,000 that is saved for a class in March 2022

Post by NostraHistoria »

Is Ally a good bank?

I currently get 0.4% in savings accounts at American Express National Bank. Is it worth it to switch for 0.1% more?
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mortfree
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Re: Best use of $3,000 that is saved for a class in March 2022

Post by mortfree »

I would leave it in your existing savings account.

Now if you are itching to invest or add to existing investments can you save $1000 by next March? Reason I ask is you could consider taking $1000 now and investing it.

Do you have a Roth IRA?
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Stinky
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Re: Best use of $3,000 that is saved for a class in March 2022

Post by Stinky »

NostraHistoria wrote: Sat May 08, 2021 1:48 pm Is Ally a good bank?

I currently get 0.4% in savings accounts at American Express National Bank. Is it worth it to switch for 0.1% more?
If you made an additional 0.1% on $3000 for one year, that would net you an additional $3.00. Before paying taxes on the interest.

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Flyer24
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Re: Best use of $3,000 that is saved for a class in March 2022

Post by Flyer24 »

It is not worth it to switch just for a year. You are only talking about a few dollars more.
drk
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Re: Best use of $3,000 that is saved for a class in March 2022

Post by drk »

If you're willing to jump through some hoops every month, you could open an ultra-high-interest account (Doctor of Credit maintains a good list of them). Some of them offer 3-4% APY, still insured by FDIC or NCUA.

This thread also has options/opinions: viewtopic.php?f=2&t=345245
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Topic Author
NostraHistoria
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Re: Best use of $3,000 that is saved for a class in March 2022

Post by NostraHistoria »

Thanks for the advice.

I did some research and found that Goldman Sachs' Marcus savings account is offering 0.5% too.
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Ron Ronnerson
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Re: Best use of $3,000 that is saved for a class in March 2022

Post by Ron Ronnerson »

You might consider doing something like this:

Open a TradeStation account and deposit $500 and earn $20/month for 5 months. Details are here: https://www.doctorofcredit.com/tradesta ... 100-bonus/

Open a TastyWorks account and put $2000 into it to get 100 free shares of stock with each share worth about $2. Details are here: https://www.doctorofcredit.com/tastywor ... -1-6-each/

I would leave the money in cash in these brokerage accounts. It is basically a safe 10% return on your money but it does take time and energy. It may or may not be worth your trouble.
Topic Author
NostraHistoria
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Re: Best use of $3,000 that is saved for a class in March 2022

Post by NostraHistoria »

Thanks. I recently opened a Huntington Bank account to get its $150 bonus.
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ArtsyProf
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Re: Best use of $3,000 that is saved for a class in March 2022

Post by ArtsyProf »

Can you try to get your current employer or any other place (organization, non profit) to PAY FOR your class that you need to take next year? An idea!

Also ppl here will tell you to look at your big picture.. your other savings, investments, any retirement funds? Any Roth IRA yet? Income? Second job? Is there ANY plan you can sign up for as a substitute teacher? For example, when I worked PT at a school - very PT! hourly rate -- I went to HR and asked. They said they had a plan but it wasn't worth my while.. I insisted on putting a portion of my pretax into it (it was AIG 403b) and saved up $1,500, chose to invest that in an index fund ( I chose a NASDAQ index fund -- insisted on it even tho AIG rep tried to upsell me to a higher ER fund), and it grew to $5,000 over 7 years (because tech stocks did well during that time). Eventually I found BH, learned about ERs and moved it to Vanguard for lower costs. My point is... look at all your options for your earnings, savings, and look at any possible way to take that class for cheaper.
tibbitts
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Re: Best use of $3,000 that is saved for a class in March 2022

Post by tibbitts »

Maybe pay for the class today. Tomorrow the cost will probably go up to $4000.
MotoTrojan
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Re: Best use of $3,000 that is saved for a class in March 2022

Post by MotoTrojan »

$3K may be a little low for this but take a look and maybe you could augment it with some of your other savings since it is risk-free.

https://www.doctorofcredit.com/best-ban ... t-bonuses/

Bank account bonuses are taxable but will net you significantly more than any of these yields. Many require direct-deposit which can be a pain (I did a ton a while back cause I can change where my pay goes easily online) but you may find some that just require holding a minimum balance for a period of time, which would be a good use for this $3K. Move it around to 2 or 3 deals and you may have yourself an extra $200, $300, maybe $500.

Otherwise I would just do a CD at Ally.
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