11 Best Things To Do With $50K

By Zach Buchenau

Last Updated: May 24, 2022

Disclaimer: This post may contain affiliate links, meaning we will get a commission (at no cost to you) if you click through and make a purchase. Please read our affiliate disclosure for more information.

What to do with $50K | Be The Budget

Are you wondering what to do with $50K in savings? If so, here are 10 great ideas to get you started.

First of all, let me congratulate you on the fact that you have a solid amount of savings. Compared to what most people keep in savings, you are doing pretty well.

That said, if you have $50K just sitting there, you might actually be missing out on a few financial opportunities. Sure, it’s nice to have that solid pile of cash, but with that amount of money, you can cover quite a few financial bases.

So, if you aren’t quite sure what to do with all that cash, here are 11 of the best things you can do with $50K or more.

Let’s dive in!

1. Fill Your Emergency Fund

As you will hear just about every financial expert recommend, one of the most important financial steps you can take is to set aside at least three to six months worth of living expenses in an emergency fund. So, if you have $50K or more to play with, the first, and most important thing you should do is fill your emergency fund.

For most people, $50,000 is more than enough to cover their living expenses for six full months. And since you have the money, I highly recommend you do so.

On a different, and equally important note, when you set up an emergency fund, it should be separate from any other savings. Since you want this money to be available in the event of an actual financial emergency, the last thing you want to do is dip into it for non-emergency expenses.

That’s why, we recommend isolating your emergency fund. In other words, you should put the money into a savings account at a completely different bank than you use for your normal checking and savings accounts. By keeping the money out of sight, it will reduce your desire to pull money out of it, and therefore, protect it from unsavory spending habits.

One more thing, if you’re going to open a new savings account for your emergency fund, be sure to pick an account that earns a decent interest rate. Here at Be The Budget, we recommend the CIT Savings Builder. With its low opening deposit and solid interest rate, it is a phenomenal choice for a savings account; whether you have $50K or not.

Other Posts About Saving Money:

2. Pay Off Consumer Debt

Consumer debt is just plain terrible for your net worth.

What is consumer debt? Well, it’s any debt that is not associated with your mortgage. So, credit card debt, car loans, and student loans are all examples of consumer debt.

And if you have $50K sitting in savings, you have the ability to pay off quite a bit of debt. In fact, depending on how much consumer debt you have, you could likely pay it all off!

Why is this such a good idea?

Because every penny of debt you pay to somebody else restricts your cash flow, and therefore, your ability to build wealth.

Additionally, you are letting the power of compound interest work against you rather than for you, which is also not a behavior that leads to wealth.

Now, just so you know, I’m not just some guy telling you to pay off debt when I am sitting here buried in it myself. I have walked the debt-free road. About 3 years ago, my wife and I paid off every penny of our consumer, and it was the best thing we have ever done.

So, when I tell you that life without consumer debt is one of the most financially freeing, stress-reducing, best all-around decisions you can make with your money, I’m speaking from personal experience.

So, to get back to my original point, if you have $50,000 sitting in your savings account, you should use as much of it as you can to pay off consumer debt.

Posts Related To Getting Out Of Debt:

3. Invest

If you have a fully-funded emergency fund and you are consumer debt free, then you should definitely take some of the $50K and invest it. After all, what’s better than using your money to make more money?

That said, investing is a pretty broad subject.

And if you aren’t very experienced in investing, it can get overwhelming pretty fast. Well, here are a few of the best, proven, options.


If you have a 401K, a ROTH IRA, or any other retirement accounts, you should consider using a portion, or maybe even all of the $50K to contribute to them. If you have the patience to invest it today and let your money grow, it could reap giant rewards by the time you hit retirement.

And when that day comes, you will be incredibly glad you did.

If you aren’t sold on the whole idea of investing for retirement, consider the following.

If you take $50,000 today and invest it in an index fund that earns an average of 10% interest each year for the next 30 years, then your money would grow to $872,470.

I don’t know about you, but those numbers are hard to ignore.


If you have kids, and you are planning to pay for their college education some day, then you should consider taking some of the money and investing in a 529-Plan (i.e. a college fund).

As long as the money you put into this account is used for qualifying education expenses, you won’t have to pay taxes on it, which is amazing.

There are tons of different options when it comes to 529-Plans, so you need to do your research and find the one that is best for you.

But, if you have $50K to invest and you want to get started with a 529-Plan, then that is definitely an option worth considering.

Mutual Funds

While both your retirement accounts and 529-Plan should be invested in a good group of mutual funds, you can also just invest the money in mutual funds on your own.

You won’t get some of the tax benefits as the previously mentioned retirement and educational investments, but the money will be more liquid, which means you can access it penalty-free if you were to ever need it.

Like I said, investing is a broad subject, and there are a lot of different ways to go about it.

But, if you have $50,000 sitting in your savings account that you don’t need for anything else, then investing in mutual funds is definitely something worth considering.

Real Estate

If you like the idea of owning real estate (beyond your own home), and you have enough money to buy a piece of property, then that can be a great option. That said, real estate investing can be risky if you don’t know what you’re doing.

For instance, if you buy a rental property and it doesn’t end up renting, or if you have to put a lot of money into fixing it up, then you could quickly find yourself in a bad situation.

But, if you do your homework and you’re careful about the properties you buy, then real estate investing can be very profitable.

And if you’re looking for a more hands-off approach, there are always REITs (Real Estate Investment Trusts) that you can invest in as well.

Sure, $50K isn’t enough money to build a real estate empire, but it is definitely a start. So, if owning real estate has always been a dream of yours, using your $50K to invest in a small piece of property, or maybe even a REIT can be a great place to start.

6 Brilliant Things To Do With 50K Or More | Be The Budget

4. Start A Business

Of all the options in this article, starting a business is the one that gets me most excited — but that’s just me.

If you have a legitimate business idea that you have been wanting to start, but you just didn’t have the funds to do so, then now might be a perfect time!

That said, you should do so with caution. Like investing in real estate, starting your own business comes with quite a bit of risk.

In other words, you should not take the entirety of the money and invest it in some far-fetched, unrealistic business idea that you have no idea how to get off the ground.

Rather, you should use a small portion of the money to help seed your business, and leave the rest to your hard work and dedication. Having enough money to start a business doesn’t guarantee its success.

You still have to put in the work.

But, if you have a good idea and a tenacious work ethic, starting a business with a little bit of seed money can be incredibly beneficial.

On another note, you might also consider buying a business that is already generating some revenue. This can be a great option if you don’t want to go through the hassle (and risk) of starting a business from scratch.

Sure, $50,000 probably isn’t enough to buy a business that’s generating a hefty profit. But, you might be able to find a business that is on the cusp of greatness.

Add a little bit of your desire and work ethic into the mix, and buying a business might just be the best decision you ever make.

Posts Related To Starting A Business:

5. Travel

For some people, the ability to travel is what drives them to earn and save more money in the first place. So, believe it or not, taking a vacation can be a great way to use a portion of the money.

Please note the fact that I said ‘a portion of the money’.

I do not recommend taking the entire stack of $50K (or however much money you have laying around) and blowing it all on travel.

In fact, you should only use the money to take a vacation after you have gotten out of debt and filled your emergency fund.

But, once you have accomplished those two financial goals, I think it’s important to take a little bit of money and use it to travel.

When it comes to personal finance, many people feel guilty about spending it on fun. But seriously, if you never have any fun with your money, then what’s the point?

Taking a vacation allows you to relax, unwind, and remind you what all your hard work is for.

Posts Related To Travel:

6. Give

I believe that giving plays an important role in personal finance, because it keeps a healthy separation between you and your money, and keeps you from getting obsessed with hoarding it.

I mean, there’s a word for people that hoard their money and never use any of it to help the people around them… cheap. Not good.

Now, I can’t force you into giving a set amount of your money, and beyond that, it would defeat the purpose.

After all, giving should come from the heart. What I will say is that giving is one of the most wonderful things you can do with your money. And if you have the opportunity to do so, you should give it a try!

7. Don’t Let It Sit In Savings Too Long

If you aren’t sure what to do with $50K in savings, it’s ok to let it sit in a savings account while you create a plan for your money. That said, the longer you let it sit in a savings account, the more money you will actually lose.

You see, since nearly every savings account doesn’t earn enough interest to keep up with inflation, every year you leave your money in savings, your money is actually losing value.

And when you’re talking about a number like $50,000, those losses can add up quickly.

Consider this: if you have $50,000 sitting in a high-yield savings account that earns 1% each year, then your money will grow to $50,500 over the next 12 months. At first glance, that might seem fine.

However, let’s imagine the inflation rate is sitting at 5%.

If that’s the case, then your $50K would actually decrease in value to around $48,000.

8. Invest In Yourself

If you can’t decide what to do with your $50,000, one of the smartest things you can do is invest in yourself. This might involve taking courses, starting your own business, or even funding your own education. Not only will this help you grow as a person, but it could also lead to greater financial success down the road.

Is there a career path you’ve always wanted to pursue?

If you’re not happy with your current job, $50,000 could be just the push you need to make a change.

Do you have an entrepreneurial idea you’ve been wanting to pursue?

$50,000 could buy you enough runway to quit your job and get your business off the ground.

Is there a skill you’ve always wanted to learn?

$50,000 could fund the classes or training you need to get started.

I am a firm believer that if you want to put your money to good use, investing in your own skill set and education is one of the best things you can do.

9. Use It For A Down Payment On A Home

If you’re looking to buy a house, $50,000 can go a long way toward your down payment. Depending on the price of the home you’re interested in, it could cover a significant portion, or even all, of your down payment.

Think of it this way, $50,000 is 20% of a $250,000 home. And with a 20% down payment, you’ll avoid having to pay private mortgage insurance (PMI), which can add an extra cost to your monthly mortgage payments.

To be clear, just because you have enough money to put 20% down on a home, doesn’t mean you should buy as much home as you possibly can.

There are many things to consider when deciding whether or not to put your $50,000 toward a down payment on a house. Here are a few things to think about:

Are you ready to commit to a long-term mortgage?

A house is an enormous financial responsibility and, as such, you will be responsible for paying the mortgage for years to come. Make sure you are prepared for this commitment before making such a large investment.

Can you afford the monthly payments?

In addition to the down payment, you will also need to budget for the monthly mortgage payments, property taxes, insurance, and maintenance costs. Be sure you have enough income to handle all of these additional expenses before taking on such a large financial responsibility.

Are you prepared to maintain the property?

Owning a house also means being responsible for all the upkeep and maintenance. This can be expensive and time-consuming, so make sure you are prepared to handle these responsibilities before making the purchase.

Overall, buying a house is a big financial decision and there are many things to consider before taking the plunge. If you are confident that you are ready for the responsibility and can afford the monthly payments, then putting your $50,000 toward a down payment on a house may be a smart option for you.

10. Buy A Car

If you’re in need of a car, $50,000 is way more than enough to buy a really nice pre-owned vehicle. Now, if you follow this blog, you know that spending money on cars (or anything with an engine) isn’t something I recommend very often.

And even when I do recommend it, I advise buying something inexpensive and pre-owned–and paying cash for it.


Because cars are one of the worst possible investments you can make. Not only do they lose value crazy fast, but the more expensive of a car you buy, the more you have to spend on insurance!

All that said, cars do serve an important purpose, and as long as you keep it within reason, spending a portion of your $50,000 on a car can make a lot of sense.

Just remember, don’t get too carried away.

11) Consult A Financial Advisor

If you’re not sure what to do with your $50,000, or if you want help creating a plan to reach your financial goals, consulting with a financial advisor is one of the wisest things you can do.

In fact, before you make any decisions about your $50K, I highly recommend seeking the advice of an experienced financial professional.

A good financial advisor will take the time to get to know you and understand your unique financial situation. They can then provide guidance and recommend specific actions you can take to improve your financial health.

And best of all, financial advisors don’t just give advice–they also hold you accountable and help keep you on track.

Bottom Line

So there you have it, 11 of the best things you can to do with $50,000.

No matter what your financial goals are, there’s sure to be an option on this list that can help you reach them. Whether you choose to invest in real estate, buy a car, or just consult with a financial advisor in order to figure out a plan, it’s up to you to take the first step.

Do you have any other suggestions for what to do with $50,000? Share your thoughts in the comments below!

What To Do With 50K Or More | Be The Budget

Zach Buchenau

About The Author:

Zach Buchenau is a self-proclaimed personal finance nerd. When he isn't writing about budgeting, getting out of debt, making extra money, and living a frugal life, you can find him building furniture, fly fishing, or developing websites. He is the co-founder of BeTheBudget, and Chipotle's most loyal customer.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked

  1. But, to make this another of the many ways to be a tourist in your own hometown, why not try something new? Rather than getting your favorite vegetables, try challenging yourself: Pick out one to two vegetables you normally wouldn t buy, and then find a recipe for them. You ll save money by not eating out, and you ll increase your cooking repertoire.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}
30-day Financial habit tracker bundle | Be The Budget

Download Our Free 30-Day Financial Habit Tracker Bundle

These easy-to-use habit trackers will help you stay accountable and motivated on your journey to financial success.