One for All Alaska Blog

Five Smart Ways to Use Your PFD

Posted by Credit Union 1 on Oct 3, 2016 11:58:04 AM

For many Alaskans, October is an exciting time of year thanks to three happy letters: P-F-D! This windfall of cash opens up spending windows you may not usually have – so what’s the best way to use this money? If you’re thinking of a big screen TV or Hawaiian vacation, you’re right that both of those sound like fun. However, with a little extra planning, you can invest PFD funds in YOURSELF and earn an even bigger reward! Here are a few great “investment” ideas:

  1. Put your PFD down toward a secured loan. These funds will act as collateral for the loan, which can help you secure a lower interest rate. Your PFD funds will be saved, and you’ll also save money on your loan! Bonus: on-time payments toward a secured loan will boost your credit score. It’s a win win!
  2. Set aside some “rainy day” savings. Put your PFD into a Certificate of Deposit (CD) so you won’t be tempted to spend it on a whim, and you can even use One for All Rewards points to earn a higher rate of return on the CD.
  3. Make a donation. You don’t need to give your entire PFD to charity, but consider how a small chunk could make a big impact on your community. We’re fundraising for the One for All Alaska Fund in October, and the beneficiaries of these funds are helping inspire positive change across Alaska!
  4. Pay down your current credit card balance. The amount you’ve charged to plastic makes up a whopping 30% of your credit score – which means paying down the balance can help your score go WAY UP!
  5. Treat yourself and treat a neighbor. If you’re eager to splurge on a new item for yourself, make the investment and then donate your old item to someone in need. For instance, if you’ve been eyeing a fancy new winter coat, donate your older coat to a charity to help a fellow Alaskan stay warm!

 

Aren’t these smart ideas? Each one will help you save money, improve your financial future or benefit your community in a huge way. Talk about a savvy investment!

Topics: PFD