What would you do with $50,000?

amother

Ecru

Sat, Dec 08 2018, 11:07 pm

If you lived from pay check to pay check and you suddenly received an inheritance- what would you do with it? Don’t suggest to stop working because even though $50,000 is a nice amount, after 2 years it would be gone if I were to quit my job. So how can I make it last for years come?

shshsh

Sat, Dec 08 2018, 11:07 pm

Down payment

gamanit

Sat, Dec 08 2018, 11:08 pm

Use the money as down payment for inexpensive home.

mha3484

Sat, Dec 08 2018, 11:08 pm

Pay off debt and fix my basment and kitchen

groisamomma

Sat, Dec 08 2018, 11:10 pm

Pay up tuition and other debts.

mommy3b2c

Sat, Dec 08 2018, 11:27 pm

Do you mean $50,000 or $500,000?

amotherof3

Sat, Dec 08 2018, 11:29 pm

Put it away for kids weddings or retirement.

amother

Scarlet

Sat, Dec 08 2018, 11:33 pm

Put in savings.

Bsimcha

Sat, Dec 08 2018, 11:38 pm

If you don't own yet, save towards down payment
otherwise, save or invest, invest in whatever you feel comfortable with.

amother

Purple

Sun, Dec 09 2018, 12:18 am

If I would get 50000, I would love to save it for weddings etc...but I would need to give it for tuition bec I get a very small deduction for each child and if I get a large sum of money, the school expects all of it to pay back for the amount per child which we didnt pay over the years.

amother

Aquamarine

Sun, Dec 09 2018, 1:08 am

I would do some renovations on my house.

11213

Sun, Dec 09 2018, 1:19 am

Down payment for a house

Ravenclaw

Sun, Dec 09 2018, 1:22 am

I would take off 15000 for debts and some minor home improvement. The rest invest. I personally wouldn’t use it as a down payment because while it may help me in the long run, 35000 isn’t usually enough for a full down payment and even if it was, I would be in the same financial situation as before—I.e. living paycheck to paycheck. Your mortgage will be at least as much as your rent if not more. Yes, owning real estate is great in the long run, but I would start with an investment which could help you improve your financial situation long term. Either create a solid business plan, learn about stocks... but one thing. Don’t try to be too smart. Ask multiple people for help, people who know about the industry you are considering investing in. Don’t rely on just one opinion either.
Also, try diversifying your investments if possible. I.e. if I were to have enough money to buy an apartment building (not with 35000 but just giving an example) I would prefer to instead buy a few different single apartments in different locations. That way if the market falls in one place, or your building has a lot of damage (fire, flood) you didn’t put all of your eggs into one basket.
Whew I am good planning responsibly. I think I deserve to win the lottery now Smile

yersp

Sun, Dec 09 2018, 1:23 am

I would pay up any overdue debt and rest put away in savings.

Surrendered

Sun, Dec 09 2018, 1:41 am

Down payment, pay up debts, start my own business, put away for kids weddings...
oh, which money? It would be gone before I see it...

Teomima

Sun, Dec 09 2018, 1:59 am

I'm surprised no one had mentioned this: retirement fund. Some day you will no longer be earning paychecks but your cost of living will continue. Be smart and budget for things like renovations, down payments, and weddings. Unexpected funds, like an inheritance, save for retirement.
ETA: my bad, I saw amotherof3 also suggested retirement.

shabbatiscoming

Sun, Dec 09 2018, 2:03 am

half put away for my child, from the other half, I would take half of that for different things in my home I have wanted done, and the rest I would put away and/or invest for the future, in other words, put it away and not touch it for a long time.

amother

Floralwhite

Sun, Dec 09 2018, 2:44 am

How old are you? Do you have any debt other than a mortgage? Do you have retirement savings? 529 plans if you plan to send kids to college? Your priorities will depend on your age and your plans.

If you are really living paycheck to paycheck, first you need a cushion for unexpected expenses. Then take a few hundred dollars to consult an independent financial planner. He or she may have advice for you in general. Maybe you could spend some money on job training to increase your income and long-term security.

Good luck!

Iymnok

Sun, Dec 09 2018, 2:52 am

If you are living paycheck to paycheck then you likely have some debt, that would be paid off.
You likely have medical procedures and repairs or replacements needed in the house and car. That would be next.
You also likely do not have all the appropriate apparel for the season and won’t either for the next season.
I wouldn’t be surprised if you are also a bit behind on tuition.
Maybe it’s enough.
If we’re 500,000 then we could talk about a down payment and savings.

If your bank offers a good short term investment option with good rates, I’d go for that since 50k is really not that much.

baby12x

Sun, Dec 09 2018, 5:37 am

Max out Roth Ira for 2018 and 2019 for you and your husband