If you’re wondering what to do with 50k dollars, then you’re a lucky one. I mean, having 50k to spare is awesome, but just as good are the ideas you’ll find here on how to spend that lovely amount!
You just checked your savings and saw that beautiful $50,000 number staring back at you? That is fantastic news! Managing to save that kind of money is a victory in itself, but then comes the question…What do I do with it?
Unless you’ve saved up with a specific goal in mind, you might be wondering what the best way to invest your money is.
Here you’ll find a few ideas on what to do with 50k dollars in savings. It’s not a definitive list, of course, and you might have some different ideas, but hopefully, it will give you some inspiration.
What to Do with $50,000: A Few Ideas
Pay Off Debt
For most people, a sum of 50 thousand dollars would be more than enough to get themselves completely out of all kinds of debt. It might not be enough to clear an entire mortgage, but it’s very likely enough to rid you of your credit card bills, student loans, rent arrears, or personal debts to friends and family.
While using those hard-earned savings to pay debts doesn’t sound fun, remember that debt weighs down heavily on your financial stability in life, and being free from it is an incredible relief. If you have debt, paying it off is the best way to invest 50k.
Therefore, using a portion of your $50,000 to free yourself from debt and allow more money to stay in your hands in the future is a very worthwhile investment.
Create an Emergency Fund
If you’re looking for how to invest 50k wisely, the answer is to start by creating an emergency fund.
If you already have one, you should certainly consider putting a portion of the $50K into it. It doesn’t have to be all of it, of course, but adding $5,000-10,000 to this cause is a great way to ensure you are protected against unforeseen expenses in the future.
Those could be medical bills, car repair costs, home repairs or even remodeling, and other things that can often send people into financial turmoil, but not you with your well-cushioned emergency fund.
Start a Business
What to do with 50 000 dollars once you’ve got the first points covered already? If you have a great idea for a business and have done some market research already into its viability but you were lacking cash to get started, then this could be the perfect moment to start.
You can use part of the money to set up a website, create or order stock, prepare marketing materials, hire employees and invest in getting the first customers and their orders in.
Those savings could be the starting point to building an enterprise that is both financially sustainable, personally fulfilling and helps you achieve the dream of financial and professional freedom.
The good news is that, depending on your business idea, as little as $10,000 could be enough for you to achieve all of the above and more. You’d have enough capital left over to invest later on in the business or be prepared for any contingencies.
A good business to start with 50k is literally any, because you don’t need millions of dollars in the very beginning…you’ll get to that later.
Invest in Real Estate
If you’re already out of debt, then the best way to invest 50000 is probably real estate. Regardless of the long-term ups and downs of the market, real estate is always a solid asset to invest in.
It’s obviously best to invest in somewhere that will certainly grow in value, but at the very, very least you gain an asset you can hold onto for life, hand down to your kids, or use as your family “base” for years to come.
What can you do with 50k to secure yourself a property? While it’s not likely you can purchase an entire estate for that amount – at least, not in any desirable location – a portion of that money would make a perfect 10-20% down payment on a house to get you onto the property ladder.
What some people might do is put a deposit on and purchase a fixer-upper. You’ll have a cheap mortgage and can use the remainder of the money to fix up the house to a nice quality.
Whatever happens in the market, when you own a property you have choices. For instance, you can rent it out while the market is down and generate good revenue from it while you wait for the values to rise again. Choice means freedom, and that’s what makes real estate a good 50k investment idea.
Set Up a College Fund
How to invest 50000 dollars if you have kids? It would be a great idea for a portion of that money to be allocated to a college fund, like a 529-Plan. When you’re investing in your kids’ education, you won’t have to worry about paying taxes on that money, which is a nice bonus.
Like with real estate, investing early in your kids’ education means they’ll have more choices when the time comes. Whether they go to an Ivy League school or a community college, or even a trade school, that money will be there to support them through their higher studies. They’ll be able to enter the professional world with little or no debt, which is a huge blessing for any young person.
If you don’t have kids, instead of stashing all that $50000 into savings, you might use some of the money for your own education. It would be more than enough to fund a master’s degree in many institutions, or any other certificate or diploma you’d like to get to enhance your professional career opportunities.
Travel and Explore the World
Not all things that you do with your 50k in savings have to be connected with financial planning and investment. A chunk of money like that can also afford your dream vacation to an exotic destination.
Perhaps you always wanted to swim in the Caribbean, or go on a tour of European capital cities, or maybe go on a round-the-world trip: the options are endless, and you can now afford many of them!
Your savings could go toward fulfilling that dream. Travel is always a fulfilling experience; it broadens our horizons and teaches us important life lessons, so why not book that flight and start packing your suitcase?
It may not seem like a sound “financial” investment, but it’s one of the best things you can do for your personal growth and development.
Donate a Part of Your Money
What to do with a 50k inheritance besides paying off debt and financing your personal projects? It’s a good idea to take at least some of that money and donate it to a worthy cause. Perhaps there are causes in your local area that you feel passionate about.
We’re often told that it’s more fulfilling to give than to receive, and you’ll discover it’s true when you donate at least a part of your money to those who need it most, and it’s one of the best investments with 50k.
Giving away the full amount might be an extreme gesture, but remember that if you were to invest part of the money first in yourself, your education, a business, or financial products, you’d likely end up with much more to give to those causes in the long term.
Consider the Options, but Invest in Yourself
As you can see, you have many options when it comes to investing 50000 dollars. All the above courses of action are viable, but it’s often a good idea to favor the ones about investing in yourself and your financial future.
Whether that means starting a business, investing in stocks, buying property, or educating yourself, you’ll be a step closer to financial security and freedom.