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:
- 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!
- 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.
- 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!
- 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!
- 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!