What would you do with 20k?

Question

I just got a 45k settlement, and my lawyer will take 33%. Should I travel or should I make a down payment on a house? I already have 6 k in savings. Should I put the money in a CD? I don't know what to do with it.

The only debt I have is 6k in a college loan, and about 7k left on my car payment. I just got married in August. I thought my settlement would be like 5k. I was rear ended by animal control in 2005. I sprained my neck, and it still gives me problems. I am in grad school now, and I also work full time for the state making about 40k a year.

Oh, also my grandma died in August, and she left me 3k. We are living in her mobile home until we figure out what to do with it.It's only worth 2k, but it is in good condition. I don't pay rent or anything. But, we live on 5 acres of land, and property taxes may be an issue.

Answer 1

Consider high paying on line CDs at ING or HSBC or the like. FDIC insured and linked to your current checking account. Send me an email and I can send you a link to get a bonus.

Also, don't consider most regular banks for CDs or money markets because they don't pay.

Consider Vanguard, Fidelity, T Rowe Price for mutual funds and money markets.

Answer 2

Look into buying a business. Put $10,000 in a bank account...find a business that costs about ten. Then borrow against your ten thousand on a 5 year note at about 12% while your money earns 4%..this means just an 8% cost.

Now, choosing the business.

Your payment at the bank will be around $225 monthly. find a business that will return you more than $225 a month. You
now have a free business and still have your ten thousand in the bank

Ideally you wil find one....and there are plenty......that will earn you well over $500 a month or more without to much work..of course you could build it bigger...but...in the meantime you have a free business using the banks money while yours earns interest.

The reason I said ten thousand is this.....you might get a little rambunctious or make a mistake or two along the way...the second time you will be much smarter...but...in a five year period doing this you could pay cash for a house and still have your 20k along with one or two businesses

There are businesses that will earn more...but...don't accept less...let your money do the work...

Answer 3

If your attorney gets 33.3% then you should get 30K. I think that the first thing you should do is to not make any hasty decisions. Do you have an account for emergencies that will cover your expenses for three to six months in case of an unexpected job loss or some other unforeseen problem, like a new transmission for the car or a new oven in the kitchen? If not, then you should use some of this as an emergency fund. After that, do some research and see if you can afford a house, and if you can, how much can you afford to pay for the house. Then you can look around and see if there is anything available in your price range. Then it should be easy to make your decision.

Answer 4

Pay off your debts you have. Take the rest of the money and invest it for your retirement. Take the money you where paying each month to those bills that you just paid off and use that money for a down payment on a home. If it's a nice mobile home and it's free I would keep living there for a few years while saving for your down payment on the new house. Happy holidays

Answer 5

I would pay off my debt to my parents.

But in your situation, I would be smart with the money and put a payment down on the house. You could travel, but your only going to do that once (unless your really rich). Why not put the money into the house and remember everyday that you were smart with your money.

Answer 6

I would probably go set up an account with scwabb or fidelity and put $15,000 into a portfolio of mutual funds, and take the $11,000 leftover as a downpayment for a house.

Answer 7

pay off all other debts first and then yes there are some deals to be had in housing look to buy a foreclosure