40 Smart Money Moves To Make With Just $50K
40 Smart Money Moves To Make With Just $50K
Having $50,000 in your bank account is a huge milestone—congratulations! But what are you going to do with it?
Sure, you could let it sit there and use it as an expense account, but that's going to get sucked up pretty quickly by life's various expenses. Here are 40 you should make with $50,000.
Create An Emergency Fund
While we don't recommend dumping all $50,000 into an emergency fund, creating a buffer zone of three to six months of expenses is generally the rule of thumb. You don't need to go crazy here—setting aside $5,000 to $10,000 should cover your expenses should the worst happen.
Pay Off Your Debts
While $50,000 might not allow you to pay off all your debts, it might be enough to either pay off completely or knock a big hole in some of your high-interest debts. Always pay off high-interest debt first, like credit cards!
Open A High-Yield Savings Account
If you don't need all $50,000 or want to put away a certain amount for retirement, it's best to open a high-yield savings account. The higher your account balance, the higher interest you'll earn.
Online banking options offer higher and promotional interest rates for newcomers.
Invest In A Certificate Of Deposit Account
Otherwise known as a CD account, a Certificate of Deposit account locks away your money for a fixed term and pays out a guaranteed amount of interest after the term ends. Ensure you only deposit what you're comfortable with and do not touch it for the duration, as there are penalties for withdrawing early!
