Paid Off Your Car? Here Are Some Ways You Can Invest The Extra Cash

If you’re reading this, you either have or are about to pay off your car debt. This is no easy feat, and it’s an accomplishment you should be proud of.

Although it may not seem like much, there’s extra cash you can finally use, but don’t just let it burn a hole in your pocket. From robo advisors, to short-term cash investments, there are a number of ways that you can invest that extra money.

Try Out A Robo Advisor For Cost Efficiency

Paying off your car won't leave you with a fortune of money to invest, but it’s something. While the extra funding in your budget won’t be exuberant, the last thing you want to blow it on is something as pesky as broker fees. Instead, consider a mobile app with zero ATM fees, overdraft fees or monthly service fees.

MoneyLion is a financial tool available through the App store that uses a robo advisor to provide users with automated investing services. It's a great tool for someone like myself with little knowledge on financial models or investing.

Through MoneyLion, users get to create their own diversified portfolio across various domestic and international stocks and bonds. This is a hassle-free tool letting even the most inexperienced member watch their money grow for free. Money is transferred from your bank account every month, without any management fees, allowing you to keep all of your earnings from each investment.

Look Into Dividend Stocks

Investigate which companies offer dividends to their stockholders. As a new investor, try just looking at a few stocks. If they’re dividend stocks, you can reinvest the dividends and buy more stock at any time. This will allow you to increase your portfolio without any harm to your savings accounts.

Invest In Short-Term Cash Investments

If you want market protection for your extra cash, try looking into a Certificate of Deposit, or a CD.

CDs create market risk protection for your money, keeping it your money. By depositing a fixed amount, you get interest in return. The longer you commit to depositing a specified amount, the larger your return will be. No matter how little amount you decide to put away, this can be an amazing way to watch your money grow.

Invest In Yourself

The wisest investment of some extra cash could be learning a new skill. Take this opportunity to use your newfound money to do some reflecting.

What’s something you’ve always wished to improve in yourself, or a skill you wish you knew? This could be anything from learning a new language, or taking a class to learn a new computing program. Pick out a self-help book and learn what the biggest obstacle is for you to overcome. In the long run, this could lead to giant leaps in your career.