What would you do with 50 Grand?

In My Humble Opinion
1

It’s a bit trickier to decide what to do with 50 grand than it is with 50 Million dollars. With a finite amount to spend, the possibilities are more limited and therefore require more thought. Also, while it’s very unlikely any of us will become multi-millionaires any time soon, 50 grand is actually within the realms of possibility.

So what would you do if this amount of cash landed in your lap?

I’d probably call in the repairmen and decorators and finally fix up my house and sort out all the niggling cosmetic and repair jobs that I currently have to budget for. I’d probably spend about 2 grand on a decent holiday somewhere like Italy or maybe Thailand, and then save the rest towards some property investment later on. I probably wouldn’t buy a new car or anything like that, but maybe a nice flatscreen tv for the bedroom.

2

Pay off my debt. Just barely.

3

Do I have to spend it in a limited amount of time or not?

Because if not, right now it’d go into mid-term investments… 6-12monthers.

I’m currently on the second month of a job that’s supposed to last until April but which my coworkers assume will last for years unless I decide to get sick of Switzerland. So rather than spend it on anything, I’d use it to fatten the piggibank.

4

50K would more than pay off my debts (except for Soul-Selling arrangment with Sallie Mae for my school loans), so that’s the first thing I’d do. I’d also buy a new vehicle, since one is badly needed at the Hallhouse. Vacation would also be on that list, but nothing too over the top. Maybe some place warm with lots of sun.

5

I’d pay off my debt, buy a late model used Civic, and put the rest towards a down payment on a house.

6

Pay off what debts I have. Upgrade car from 1994 Accord to something closer to 2000. Set aside ~$1000 to play with and by presents with. Stash the rest in investments (most likely to be used for a house at some point in the future). Continue to live life as normal.

7

That would pay off my mortgage and leave enough to renovate the bathroom, kitchen and my bedroom. That would be sweet!

8

100% to my old age.

9

Absolutely. I’d have to say emphatically that if one had credit card debt or loans where the interest rate exceeded that of CDs, and if one did not use that money to pay off that debt, then future monetary woes are as inevitable as the sun rising in the east. And believe me, I know a family who lived paycheck to paycheck, ran each card up to the limit, and blew a large insurance settlement on nothing at all. They’re back to where they started, and with absolutely nothing to show for it. I think that mortgages are a bit different; if you can handle the monthly payment, it allows you to itemize deductions for other things, so it almost pays for itself and I wouldn’t make it a priority.

For those parents out there: I can’t believe what college tuition costs these days. You’d be wise to think of stashing that money away for that.

With no children, think of contributing the maximum to your employer 401K. If it hurts to do that, then you could use a corresponding amount of money from the 50G for living expenses. Again, the tax benefits from contributing to the 401K will help at the end of the year.

Even with the housing bubble having burst, your home is still your home. If you need a new kitchen or bath or addition, then you need it. Don’t have it built hoping to make a bundle when you sell, but rather for your own enjoyment. Nevertheless, it seems like a reasonable use of the money to me. And if you don’t have a home and want one, a down payment would be an excellent use for this money. Just spend some time, and get to know the market.

Assuming that the 50G was after taxes: I have no outstanding debts, no children, and I max out on my 401K. I’d make the maximum contribution to a Roth IRA. After that, I’d use some money for some home improvement projects that I can’t do myself, although there isn’t much that I need done. I’d consider either putting the remainder in mutual funds, or else in an interest account and using the interest to fund a mutual fund.

I don’t think that any of this will appeal to anyone under 50. :wink:

And on preview: Wow, what a lot of response while I was composing this! Nice to see the focus on debt.

10

Pay any and all debts with interest above 5% (besides a mortgage). If I were to buy a house soon, I would put in high yeilding savings account earning 5%+, or CD’s, which ever is higher, but savings accounts are more liquid. If I owned a home, I would max out retirement accounts for the year, and put maybe 8k for emergency reserves in a high interest checking account, and the rest in taxable investment funds via Vanguard. Any car I would buy would be used and paid in cash well below 6k, and I would likely buy it from a private party after I did my homework on the vehicle. That’s what I would do.

11

I’d hire Plynck to help me make this decision.

12

I have 2 cars. Both have 3 wheels in the grave, and I still owe a lot on one. So I’d pay off the existing loan & outright buy 2 new cars.

13

Stick it in a money market until next April 15th.

14

Pay off my debt and then drop the rest on [del]hookers and blow[/del] sound financial investments.

But I’d earmark about 10% of it for “mad money” to burn on whatever caught my fancy.

15

Pay debt/bills/kids college fund, etc., leaving me a little to get me a sweet hand-wired VOX AC-30 and maybe a bit more studio time…

16

First, I’d settle my credit card debt and use the rest for my mortgage. I’d probably hold back $5,000 for miscellaneous things I’ve been wanting, such as a big-screen TV, a new car stereo system, etc.

17

I would use 30k or so to go to the grad school I want. I’d spend a few thousand on a trip to Europe and then save the rest for a down payment on a condo or house in a few years.

18

I am debt-free, so that part’s taken care of.

I’d put 40,000 into my RRSP*. I’d put the rest into my savings account to have it on hand as emergency funds, except for 6000 or so that I’d use for ‘home impriovements’: flat-panel HDTV, new computer, selected items of new furniture, a complete apartment cleaning, better cookware, new clothes, etc. Plus a nice holiday.

I was going to say that I’d keep 20,000 back for a downpayment on a condo, but then I remembered that Canadian tax authorities allow first-time homebuyers to pull their downpayments out of their RRSPs and pay the borrowed money back over 15 years.

[sub]*RRSP = Registered Retirement Savings Plan. The RRSP allows money earmarked for retirement to be taken from one’s income before taxes are paid on the income, compound in an investment account, and then only have taxes paid as it is withdrawn. The compounding growth while it is invested is not taxed. The US equivalent, I believe, is a 401(k), but ours has a nicer name. [/sub]

19

Pay off rest of unsecured debt and both cars.

The other 10K left over would go towards removing the in-ground oil tank and replacing the furnace.

Anybody know a good and cheap oil tank removal service? I’m about to get 50K to blow!

20

Oh–I just remembered. Our RRSP contributions max out at 18,000 per year. So I’d have to put the rest of the 40,000 inso some other form of investment.