What Should I Do With 50k? (How to Invest and Double It)

For about 6 months, I'd recommend that you put the money into a simple high-yield savings account and do nothing with it.

During that time, think about the different things you'd like to do with the money (but don't act on anything right away!).

Write down all your ideas on a piece of paper.

If you got a 50k inheritance from a loved one passing, perhaps you should consider honouring them with your purchase.

In other words, what would they have had you do with the money?

• Pay off debt? (See our debt snowball tool)

• Give some away?

• Invest it in the kids' education?

Keep reading the post below about all the different things you could do with 50k. Then, at the end of 6 months, start to spend it wisely and carefully.

And most importantly, spend the money intentionally!

Wondering what to do with $50,000 in savings for the long term? If you're looking at a span of 5 years or more, then you can start to think about sticking your money into an investment - particularly, the stock market.

For me, one of my favourite long-term investments is a simple index fund investment. My particular favourite is VTSAX. You can invest pretty much any amount of money you want to here, and over a long stretch of time, this investment almost always goes up. AND, it averages 8% or more! Not too shabby for a simple investment!

Want some other ideas on what to do with 50k in savings for the long term? Check out the investment section below!

Read more:

Earn 2% or more per year (check with BankRate for the best rates right now)

Earn between 4% and 5% (here's a solid list of government bonds by US News Money)

Earn 2%-3% (check out this top list by Investopedia)

Earn between 4% and 5% with a certificate of deposit.

What are dividend stocks exactly? You can buy shares of a company stock that agrees to pay a dividend each quarter. Some are as high as 5% or more of the share price, which can equate to quite a hefty sum!

Here's just a sampling of some companies and their annual dividend percent:

• Exxon Mobil: 6.1%

• Chevron: 5.4%

• Verizon: 4.7%

• Kraft Heinz: 4.4%

If you're trying to figure out how to invest 50k for cash flow, dividends are a great way to do it.

Real Estate is an amazing way to invest 50k for cash flow. Sure, $50k won't buy you an entire rental, but it can serve as a fantastic down payment!

Invest $50k into a rental property that's worth $250k. It likely earns $2,000 in rent per month. After the mortgage, maintenance, property tax, and insurance, you could probably still net $600 a month.

Each year, you'll earn roughly $7,000 in cash flows with your real estate investment. That's a 14% return on your investment each year. BOOM!! And, that's not even factoring in the appreciation of the property value!

Read more:

Do you get a match on your retirement investments? If so, this can be a no-brainer! Invest in solid funds that will grow in value, AND get a bunch of free shares from your company! Don't forget to invest here if this is the case.

Roth 401k vs Traditional 401k Calculator for Excel

Roth IRA or 401k? This template will answer your questions.

With this template, you will get:

• All DFY, simply add your details

• Charts for comparison and clear answer

• Easily update for any year (2023, 2024, 2025, etc…)

Get this template

If your retirement is ahead of where it needs to be, sometimes it makes sense to invest in individual stocks in your own brokerage account (especially if you're thinking about retiring early).

What stocks should you invest in? That's up to you.

Whatever you do though, be sure to spread your money around. Don't just put the entire 50k into a single stock. That's much too risky!

Read more:

Finding the Best Stocks to Buy

This one is huge. If you're wondering how to invest 50k for cash flow, this could be an absolute gold mine for your skill set.

Do you enjoy business?

Do you have a great idea for making money?

Is 50k enough to start a business?

First off, absolutely 50k is enough to start a business! In fact, I started my first business with just $100. Of course, this will depend on what you want to start. But $50,000 should be able to go far in whatever it is you want to do.

Heck, it might seem like a crazy idea, but you could even buy a blog and run it for the cash flows!

Did you know that Derek started his blog 12 years ago and started making $1,000 a month after just 6 months? And, he still makes over $1,000 a month to this day?

He has earned hundreds of thousands of dollars with this simple blog medium. Crazy, but possible!

What's your idea? Is it a low-risk venture that could produce some great cash flows?

This is one that people always tend to forget. Sometimes the best investment is in YOU!

For instance. Let's say you can pay $5,000 to get a certificate that would increase your salary by $10,000 a year. After 20 years, that $5,000 investment would earn you $200,000.

Now THAT'S a good investment! Seize these opportunities wherever you can.

Want to learn more about investing in yourself? Check out Masterclass. It's a great resource for learning more from the experts.

Do you have a credit card with high interest? Or maybe you have private student loans that grow faster than you can pay them off. Whether you want to or not, the best thing to do is use part (or maybe all) of your 50k to pay off all of that debt.

I get it. I get it. It seems like a waste to just pay off debt. But think of the freedom you could feel by NOT having those debts hanging over your head anymore.

And, before you say, "Well, I should invest some too, so it has time to grow!", keep in mind that the average return on investments is 8-10% a year.

If you have debts that are above that, you're actually losing money when you invest. So, pay off your debt first, then focus on investing!

The best way to pay off high interest debts is to use the debt avalanche method. We've created a template to get you started 👇

Debt Avalanche Spreadsheet for Excel

Want to get out of debt this year? This avalanche debt payoff spreadsheet is what you need!

A few top features of this template:

• Fully customizable and easy to “play around” with

• This tool is awesome for motivation!

• Room for up to 32 debts!

Get this template

Read more:

Debt Snowball vs Avalanche Method (Which Gets You Out of Debt Fastest?)

As you may know, a $1,000 emergency fund won't get you very far these days (although anything helps). So, your next step should be to make sure you have enough money in savings so you could live off of it for 6 months to a year if you needed to.

With 50k, that should be plenty of money to put a proper emergency fund in place. It's also important to keep your emergency fund separate from your regular savings. This money should be slightly easy to access should you need it, but not so easy that you use it for non-emergencies.

Remember, out of sight, out of mind. This is especially important if you're a natural spender since keeping it separate will reduce you wanting to spend it.

Also, be sure to pick a high-interest savings account that earns a decent interest rate. Just because you're not investing, doesn't mean you can't earn some money back!

Not sure where to start? The easiest way to start saving is to use a reliable tracker. One of the best beginner friendly methods is 50/30/20 method.

You can build one yourself, or use the one we created 👇

50/30/20 Budget Template for Excel and Google Sheets

50/30/20 budget template perfect for beginners!

A few key features of this template:

• Only includes the things you need – no unnecessary tabs

• Included clear instructions

• Pre-filled with sample data

• Fully customizable to your needs

Get this template

Okay, now you've paid off your debt and have a healthy savings account. Now what? Start investing! There are so many different ways to invest $50,000.

What Should I Put 50k In?

So what is the best way to invest the money? What should you put 50k into?

Here are a few of my favourites:

• Bonds

• Growth Stocks

• Dividend Stocks

• Target-Date Funds

• Index Funds

• Mutual Date Funds

• REITs (real estate stocks)

• IRA CD

Each of these options has its benefits and drawbacks. And, they aren't even the only things you can invest in!

There are so many other investments that you could make. These are just the easiest to start with and can usually be managed by yourself.

Whatever you do, make sure you research which method or investment works best for you. You could also talk to a financial advisor or start a robo-advisor account just to get used to investing on your own.

50k Invested For 10 Years - How Much Does It Grow Into?

Want to know what happens to 50k if it is invested for 10 years?

Let's say you can earn 10% with your 50k. That's a decent return. How much would $50k turn into in 10 years? In 10 years, your $50k would become $135,000.

Not too shabby.

What if you could do better?

What if you could earn 15% in cash flow on your rental and your property appreciated by 5% as well? In other words, what if you earned 20% each year for 10 years with your 50k investment?

After 10 years, your 50k would become $363,000. Now we're talking!

If you can work it a little harder and earn a little extra on your investments, the payoff will be well worth it in the long-run.

Speaking of rentals, let's dwell on this investment for a while. There are many ways to earn a rental income these days! $50,000 can go a long way, especially if you're buying a home or property that can make you money while you live there.

Also known as house hacking, you could live rent-free and (technically) mortgage-free if you invest in the right place.

There are a couple ways that you could do this.

• The first way is to buy a home with more rooms, and then rent out those rooms. Usually, this would mean that you have roommates, which may or may not work for you. But, it does significantly cut costs.

• If you're more introverted or don't like sharing space, try buying a multi-family property. Duplexes, triplexes, or even homes with finished basements to renovate can be used as multi-family properties. Basically, you'd move into one side, and then you could rent out the other. If you're able to put a hefty down payment on the home and keep your mortgage low, you could even end up making a profit.

It's easier than ever to start your own side hustle or business that brings in extra income. And with $50,000, you could start just about any business you want. From online to brick and mortar, as well as across multiple niches and fields, there is a business idea for everyone.

The key is to know what you're doing and not be afraid to invest.

• For example, do you have any degrees or certifications that you can use to start the business?

• Do you have a trade or hobby that you're really good at?

• Will you be doing this full-time, or in addition to your full-time job?

These are important questions to ask yourself. Also, if you're not ready (or don't want to) to start a whole business, you could start with a side hustle!

Maybe it's baking and selling treats in your free time. Or maybe you like to renovate and decorate and want to make a bit of money on the side. Whatever it is that you want to do, there is an audience and market for it. Trust me.

Related:

Have you ever wanted to donate your time or money, but feel like you don't have enough of either? Well, now's your chance!

I'm not saying you can't spend your money on yourself. But, if you want to do something for others, giving is a great way to do that. There are so many charities and non-profits that you could choose from.

Or maybe you even want to start your own! Whatever the case may be, give with intention and do it because you truly want to, not because you think you have to. You are not a bad person for wanting to keep your money.

But, if you want to feel like you've made a difference or helped someone, using your money or taking time off to give back is certainly an option.

Last but not least, why not take some time off?

You don't have to be "retired" forever. But maybe you want to take some time off to figure out your new career path. Or maybe you want to take some time off to travel the world. Or, perhaps you just want to sleep in for a few months and do what you want to do for once!

Whatever the case may be, a mini-retirement (usually 2 years or less) can be just the thing you need. And with $50,000, it is much easier to do!

Now, I don't recommend spending the whole $50,000 over your mini-retirement — especially if you have other goals you want to reach too. But, taking a chunk of it to spend time just enjoying life can be just what you need!