What to Do With $1,000 Now

Low interest rates and the recent stock market surge make this a challenging time to find the best places for your extra cash.

CNN

1. Top off your emergency fund

Given today's shaky job picture, you need fully six months' worth of expenses set aside in a liquid account that you can raid if calamity strikes. Fall short? Adding to that stash is a no-brainer. Because yields on many of the typical cash options look rotten -- six-month CDs are kicking off an average 0.62%, and money-market funds are hovering around 0.05% - your best bet is a high-yield online savings account. One example: Ally Bank (ally.com; 1.75% yield; no minimum). Find other solutions at bankrate.com.

2. Spend five hours with a financial planner

If you're like most investors, your portfolio has been through the wringer -- and while you may not want someone to run your money for you, you could use a pro to help you get back on track. Call a fee-only planner and ask for a simple checkup, which is likely to run around a grand. To find such a planner, go to garrettplanningnetwork.com; an hourly rate of $150 to $250 is typical.

3. Buy a top-notch stock fund

Very few no-loads let you in for a minimum investment of as little as $1,000 ($2,500 is typical). Here are three that do -- all of which have low fees, excellent long-term records, and strategies that make particular sense now.

4. Upgrade your home appliances

Replacing your old machines with energy-efficient ones will cut your electricity and water bills -- plus land you Cash-for-Clunkers-style rebates of up to $250 apiece. Each of the models below is highly rated by Consumer Reports and will set you back less than $1,000.

Appliance: Dishwasher
Model: Bosch Evolution 500 Series SHE55M1[2]UC
Annual utility savings:* $31
Cost: $850

Appliance: Refrigerator
Model: Amana ABB2221FE[W]
Annual utility savings:* $49
Cost: $950

Appliance: Washing machine
Model: General Electric WCVH6800J
Annual utility savings:* $122
Cost: $700

Source: Energystar.gov
NOTE: *Savings in electricity and water charges when you replace a 15-year-old model.

5. Help on a large scale (really!)

You can turn $1,000 into one of the following:

8 sheep for needy rural families: Heifer International (heifer.org)

40 microloans for would-be entrepreneurs in Third World countries: Kiva (kiva.org)

1,000 trees planted to stop erosion and green up the planet: American Forests (americanforests.org)

6. Join a gym

Getting fit doesn't just feel good: It can cut your bills. The typical obese American (209 pounds or above for someone 5 feet 10 inches) incurred $1,429 more in health-care costs in 2006 than someone with a healthy weight (174 pounds or less). So buy a health-club membership (median cost: $775 a year) -- and spend the remaining $225 on a personal trainer to get you off to a strong start.

7. Beef up your IRA (If you're 50 or older)

Take advantage of catch-up provisions that let you put an extra $1,000 into your individual retirement account each year.

8. Pay down credit card debt

Pay down credit card debt

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