Pregnancy: Acquired $1,000 what should I do with it??

Question

Im due January 4th and aquired $1,000 that doesn't necessarily have to go somewhere. We do not have much money and live paycheck to paycheck so whatever I do with the money needs to be accessable in case of emergencies.

I'll most likely just put the money in our savings account. If there is somewhere better I could put it, and still access it within a day or two let me know!

Answer 1

If you don't have an "emergency fund" that's where the $1000 should go. A regular savings account is your best bet - CD's and stocks are slow to access and you must pay penalties upon withdrawal.

An emergency fund is essential! You never know what might come up in the coming year - medical bills, appliance break-down, car trouble, car accident (with deductible), so it's nice to have a small cushion in savings to bail you out, leaving your paycheck secure.

I would not start investing until you first have an emergency fund and have paid your debts off.

As far as baby things go, just buy them a little at a time so you don't take a big hit out of your paycheck.

Answer 2

start an emergency fund with it, it will grow better than it would if it was in a savings account and will still be easily accessible for immediate use. Everyone should have one of these with about 3 months income put away in it for emergency use.

OR if you don't have a "need" for it you could always put it in a high yielding account for your baby, earning about 10-12% interest. It will double every 6 years at 12%. You can't get at this easily though, and is meant as a savings vehicle for education or retirement, but just think about how much money $1000 at 12% will amount to by the time he/she retires!!!

Answer 3

i would put it in a cd except you wont be able to get to it, however you will make money off of it in the long run. it has a much higher interest rate than a savings account. it will also keep you from spending it on something you dont need to. you can take it out early with a penalty however if worse comes to worse. it would be a great way to start a college fund for this baby too. if you look at it as money you dont have you wont miss it and in the long run you will have invested it into something worth while. i would go to your bank and look into the cds and see how much interest you can make. they have 1 month 6 months 1 year and so on. so it isnt a life long investment.

Answer 4

I agree with everyone that says to start an emergency fund, but I would put the money in a money market account (MMA) rather than a regular savings account or in bonds. Savings accounts typically have very low interest rates. The bonds make the money inaccessible.
You can go to bankrate.com to check out different MMAs. (http://www.bankrate.com/brm/rate/mmmf_highratehome.asp?params=US,416&product=33 for the direct link to the high yield MMAs and savings accounts). Look for an account w/ a high interest rate, no minimum balance and no fees. We use the Ingdirect account and can get money out w/in a couple of days.

Answer 5

It amazes me that two of your first responders told you to spend all that money instead of saving it so you have an emergency fund. You are very smart to do this.

Possibly a money market account would work. Money Market Accounts, like savings accounts are fluid so you can get money fast if needed. They also both earn very poor interest at this time. To be honest, anything that will earn you more will either be high risk, or not fluid, so those two are probably your best bets.

Answer 6

I would suggest taking $200 and stocking up on household necesseties, if you already have everything you need for the baby, then I would put the rest in the bank. You could also sign up and pay for a real estate course, or towards a trade school to increase your income for the future.Pray about it, I'm sure you will make the right decision.

Good luck and best wishes.

Answer 7

if you live paycheck to paycheck you need to put it into your banks savings account so if you need it its only a phone call away and it can be transferred to your checking in less than a minute in case of emergencies. all kinds of unexpected things happen when you have a baby.

Answer 8

I would put it away and get things you need for the baby as you need them.

Answer 9

i have to tell the truth diapers are super expenxsive stock up on several sizes, and belive me you will have times where the baby may go through a whole pack of them a day. baby clothes in sever sizes as well they grow out of them super fast.

Answer 10

you could buy baby stuff!!!!