Fun fact: Amazon has their own holiday. It’s not a nationally recognized holiday, and no one gets school off to celebrate it. Yet on Prime Day, the Washington-based online retailer holds absurd deals on their website for all sorts of products. If there were a Christmas in July, Prime Day would be its Black Friday.
Yet the Prime Day deals aren’t anything special. On Black Friday, people line up and wake up absurdly early for $100 big-screen TVs and free computers. On Prime Day, however, you can expect to see such jaw-dropping deals as this:
Instead of buying stuff you don’t need on a day that doesn’t really exist, we came up with five better ways to spend your hard-earned cash. We guarantee you that these better buys are way more interesting than 20% off gym equipment. Best of all, they could help your money make money for future use.
1. Buy Amazon stock instead.
This is a pricey purchase, and Amazon ($AMZN) is at all-time highs. At the same time, investors and analysts alike believe the company’s stock has strong potential to grow even further. Their pending acquisition with Whole Foods will help them take over the grocery industry, and their deals in international territories will likely help the company make even more in revenue. This would eventually help their stock grow even more in value.
2. Buy from anywhere else — or buy nothing at all.
Prime Day is a way for Amazon to offload their warehouses and sell stuff no one really needs at a discount. This makes room for more products in warehouses while also creating an event that drives a sudden surge in revenue. Amazon also gets numerous new Prime subscribers on Prime Day, which helps lock new customers into the Prime ecosystem, where the company makes the most money.
Since Prime Day is filled with relatively useless deals, you don’t need to spend your hard-earned money just because something you might like is slightly cheaper. You’re best off saving your money for other things. If, however, you feel left out in the rush of online spending, you could always check out Amazon’s rivals, like Walmart and Sears. Nearly every major company with an online storefront is offering deals of their own today to counteract Prime Day, some with much better deals. So, if you’re in the mood to shop, make sure you check out the competition first.
3. Buy a stock for under $100
Instead of spending money on stuff you don’t need, put that money to work with some low-cost, lower-risk stocks and funds. There are countless stocks to choose from, many under the low price of $100 a share. Luckily for you, we put together this neat little list of how to start investing with just $100.
4. Buy an index fund.
If you don’t know anything about stock indexes, know this: they go up over time. This means that if you put your money into an ETF following a stock index, chances of it increasing over time are rather high. Though the most popular funds following these indexes cost in the “low hundreds,” they’re worth your money more than a discounted Instant Pot on Prime Day.
5. Invest in Amazon’s Chinese rival.
Amazon might be doing well on the stock market, but Alibaba ($BABA) is absolutely crushing it. The company is outpacing Amazon on the stock market since the start of this year and within the last year. If you invested in Alibaba a year ago, your investment would be worth 76.9% more today. In contrast, Amazon increased by 31.26% as of this writing. These increases are impressive and beat the market average, but $BABA is newer, growing faster, and has a much cheaper share price than their American counterpart.
Remember: the more you save now, the more you’ll have later. If you were to take your allotted Prime Day cash and invest it in a low-risk index fund now, you’ll be able to afford many more Prime Days down the line. Just don’t save every single penny. You still have to have some fun!