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

posted 2 years ago in The Lounge
  • poll: Surprise! You inherited 20k, what would you do with it?
    Pay off student loans! (30k) : (36 votes)
    20 %
    Invest in the stock market. : (5 votes)
    3 %
    Pay off personal debt (5k) : (22 votes)
    12 %
    Regular savings account. : (4 votes)
    2 %
    Divide the money to pay all personal debt then the rest on student loans. : (94 votes)
    53 %
    Other. : (17 votes)
    10 %
  • Post # 46
    Member
    450 posts
    Helper bee

    I go with paying off debts but I would also buy some item of jewellery to always remember her by.

    Post # 48
    Member
    901 posts
    Busy bee
    • Wedding: August 2014

    We don’t have student debt or personal debt, and I don’t think a normal savings account is a good way to save so I would suggest something like a mutual fund or GIC if that’s what you choose.

    Darling Husband and I contribute a lot towards retirement savings, as well as education for our son, so I don’t think I’d increase that either.

    We would probably use it for improvements to our home, such as renovating our main bathroom and finishing the basement.

    Post # 49
    Member
    1742 posts
    Bumble bee
    • Wedding: May 2018

    Honestly,  we would use $3000bfor something frivolous then use the rest with our savings to buy a few acres of land hours away from town. That’s our five year plan.  Get out of the city and build our home on some acreage within a few hours of town. So far,  we just like to dream and look at lots for sale and house plans.  It may seem immature,  but I love Dh for building our home and family in the Sims yesterday,  complete with animals.

    Post # 50
    Member
    667 posts
    Busy bee

    Pay off debts with the highest interest first. Then the lower interest debts. Usually means credit cards FIRST. Then the loans.

    My student loans were like… 6 differerent loans (and interest rates) but all managed by same company. I just paid them off that way. Worst interest rates first. I had that option online.

    Broken record here but paid off ~25k in 1.5 years that way. And I am poor!

    Now that I have my school debt gone entirely I would just put the whole thing towards mortgage if it were my money.

    Oh. And if you pay off the credit card first.. leaves more money to pay towards loans every month (including the leftovers of the 20k) after so. win win. Pay those off then invest with extra money for whatever you like.

    Post # 51
    Member
    392 posts
    Helper bee
    • Wedding: July 2018

    I follow Dave Ramsey’s plan. I would keep $1000 in savings as a starter emergency fund, then list my debts small to large and pay them off in that order. So probably consumer debt then student loans  and with any debts that are left, snowball those payments that you paid off into those debts to get them paid faster

    Post # 52
    Member
    681 posts
    Busy bee

    I agree with the PPs that suggested a combo of things. Pay off some debt (accounts with the highest interest first), buy some stock, and if you feel comfortable with what you currently have in savings, spend a little. 

    Post # 53
    Member
    1159 posts
    Bumble bee
    • Wedding: October 2016

    In your scenario, 100% of the personal debt, then student loans with the rest. Then take the personal debt payment and apply it to the student loans and knock those out a hell of a lot faster! 

     

    Post # 54
    Member
    599 posts
    Busy bee

    debts first – always 

    Post # 55
    Member
    30 posts
    Newbee

    A little bit of everything! Pay off personal debt. Put some towards student loans, Invest some, put a little in savings and take a vacation! Or even just a little weekend away. Treat yourself! 🙂

    Post # 56
    Member
    6559 posts
    Bee Keeper
    • Wedding: February 1997

    It is a very personal choice, depending on what station you’re at in life. We don’t have debt, so this money would go directly into the education accounts for my children.

    Post # 57
    Member
    214 posts
    Helper bee
    • Wedding: November 2018

    I would pay off the personal debt, put the balance in a high interest savings account and use it to start saving for a home deposit.

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