What to Do with $10,000 Cash?
Got money to burn and wondering how to spend it? Maybe it’s $10,000, $20,000 or just $500. There are obvious smart things you can do with your money or you could just enjoy it and get some self satisfaction out of it. If you’ve recently looked at your quarterly investment reports, you might be well inclined to spend the money on something you enjoy rather than watching it disappear like a puff of smoke.
There’s probably no perfect answer, and I’m not a financial advisor, but what you should spend your money on depends on:
- Your Financial Goals
- Your Current Financial Situation
In other words, the best answer varies from person to person. If you are not carrying any debt, plan to max out your 401k and IRA this year, and already own a home, you might feel comfortable enough spending it on a nice vacation. If you’re interested in making more money, you could:
- Buy Investment Property
- Purchase Assets (art, stocks, antiques)
- Start a Business
On the other hand, if you are carrying debt, your best bet may be to get closer to living a debt-free life. Start with your high interest bearing debt, such as credit cards, and work your way down from there. Student loans and home mortgages generally come with low interest rates, but if you do not have any other debt, consider owning more equity or paying off a big chunk of your student loans.
The bottom line is you have to ask yourself if you want to do what’s right or what feels good. If you want to do what feels good, make sure that you won’t have any regrets. If you want to do what’s right, pull out a calculator and find out how to get the most return for your dollar – whether it be to pay off your bills or invest it elsewhere.
Don’t forget to keep your long-term strategy in mind and think about how your decision can help or hinder you from achieving your goals.