An unexpected 20k… what would you do with it?

posted 3 years ago in The Lounge
  • poll: Surprise! You inherited 20k, what would you do with it?

    Pay off student loans! (30k)

    Invest in the stock market.

    Pay off personal debt (5k)

    Regular savings account.

    Divide the money to pay all personal debt then the rest on student loans.

    Other.

  • Post # 31
    Member
    9204 posts
    Buzzing Beekeeper

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    teacher-bee-in-the-sea :  pay off the debt in order of highest interest rate to get the most bang for your buck. If there was anything leftover then invest assuming you have sufficient emergency cash savings on hand. 

    Post # 32
    Member
    701 posts
    Busy bee
    • Wedding: September 2018

    I’m in the UK, my student loans are paid off but my fi still has some (like other bees have mentioned, his might not get paid off in full before they’re wiped). I LOVE not paying money out each month for student loan. It depends on how much it bugs you, and what kind of saver you are. I’d prefer to pay off as much loan as possible (from the highest % interest), and then save up what I’m not paying out each month for a holiday or new car or whatever.

    Post # 33
    Member
    3086 posts
    Sugar bee

    I’d share it with the Bees 😉

    Post # 34
    Member
    3173 posts
    Sugar bee

    Personal debt, vacation, and put the rest in the S&P 500 and forget about it. My husband’s family loves to talk money. They love the S&P 500. Ride out the lows. They are millionaires doing it this way. 

    Post # 35
    Member
    1012 posts
    Bumble bee
    • Wedding: September 2018

    If that’s enough to buy a house in your area then I’d buy a house. (By which I mean, will this down payment get you into a reasonable house.) If its nowhere near that then pay off the personal debt then invest the rest. 

    Post # 37
    Member
    282 posts
    Helper bee

    View original reply
    teacher-bee-in-the-sea :  PSLF covers most federal loans, and if your IBR payments are low enough, that may be nearly all the loan amount after 10 years. Talk to a financial advisor! Personally, I’d likely pay off personal debt, invest some, and save some. 

    Post # 39
    Member
    697 posts
    Busy bee
    • Wedding: October 2018

    I’d buy a new car instead of a used car since I need one. I’m in the lucky position not to have student loans (yay German system) and no personal debt either. I need a car, so it would make sense.

    Post # 40
    Member
    2288 posts
    Buzzing bee
    • Wedding: April 2018

    Pay off debt and spend a little bit on a holiday. 

    Post # 41
    Member
    610 posts
    Busy bee

    I’d pay off my small amount of person debt and then make a little dent in my student loans. And maybe buy myself a little treat lol. 

    Post # 42
    Member
    2691 posts
    Sugar bee

    I selected other due to the fact that I think personal loan debt should be paid off first. Put some in savings ~2.5-5k or so; if you go the 2.5k route, spend about 2.5k or so on a vacation or something you could enjoy doing. We would finish our basement Then with the remaining $10k,  I would do one of the following – buy a newer vehicle (mine’s a 2001) or put the rest into retirement funds. Since I work in the healthcare industry (and live in the US), my student loans will be written off after 10 years of payments….so I would just wait for that as I already have 5 years of payments down. 

    Post # 43
    Member
    1178 posts
    Bumble bee
    • Wedding: January 2017

    I lost nearly 70lbs and need a lot of work done to my body as a result of all the skin and fat that pulled away from the muscle…I would put it towards the very expensive surgeries I will be having 

    Post # 44
    Member
    2252 posts
    Buzzing bee
    • Wedding: October 2019 - Chateau Lake Louise

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    mrsaime :  everyone could buy a real nice bottle of nail polish and get matching pedicures…

    Post # 45
    Member
    2778 posts
    Sugar bee

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    teacher-bee-in-the-sea :  I think the advice to talk to a financial advisor is solid. One tip: when you’re talking to advisers, always ask whether they follow the fiduciary standard. That basically means they have the legal obligation to give you advice in your best interest rather than selling you products that benefit them. You should not take advice from anyone who isn’t a fiduciary. 

    Some more basic info here: https://www.nerdwallet.com/blog/investing/find-a-financial-advisor

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