What To Do With 50K: Essential Tips to Protect and Grow Your Money

What To Do With 50K: Essential Tips to Protect and Grow Your Money

So you have been really good with your money for the past year and have a substantial amount stashed away in savings. If you’re wondering what to do with 50K, here are some great ideas on how to make the most out of your money. 

Accumulating 50k in cash is certainly an achievement worthy of shouting from the rooftops. Although you probably might not want to do that! You may now be wondering what to do with 50K cash? 

Before you begin considering your options, there are some questions you should ask yourself:

  • What are your financial goals and priorities?
  • Are you a risk-taker?
  • If you are risk-averse or more conservatibe, how much of your money are you willing to lose?

Answering these questions will give you a better idea of the things that you could with your 50K in savings. Once you have figured that out, then there are plenty of ways to make your money work for you and get the best returns for your investments. 

So, if you wake up one morning and think to yourself, “I have 50K to invest, what should I do?”, here are just some ways as to how you can put your 50K savings to good use! 

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1.Pay Off Your Debt

So this probably isn’t the first thing you thought about when you realized that you have 50K in cash. 

However, it is one of the best things that you can do for your financial health. There would be little point in investing your money if you continue to be in debt. 

Ideally, you should use the 50K to settle and pay off as much debt as you can (especially those that come attached with high-interest amounts) and start with a clean slate. 

If you have money left over from that, then begin your investments or put the balance towards something that can bring you decent returns. 

The feeling of financial freedom that comes with knowing that you don’t owe anyone or anything is priceless!

2.Build Up Your Emergency Fund

As excited as you might be in your quest to figure out how to make money with 50K, it is probably safest to set that money aside for some of the harsher practicalities of life. 

The rule of thumb that any decent financial adviser will tell you is to set aside 6 months’ worth of expenses to your emergency fund. 

Once you have calculated how much you spend each month, multiply that by 6 and make sure you have that amount in an account or stashed away somewhere. 

You also have to make sure that you don’t touch that money unless it is an actual emergency. 

These emergencies can include but are not limited to:

  • Sudden unemployment
  • Unexpected medical bills that may not be covered by your insurance
  • Car repairs
  • Essential appliance repairs such as air conditioning units or refrigerators. 

Remember that an impulsive road trip or the purchase of that new luxury handbag or the latest MacBook do not count as actual emergencies! 


If you are wondering what to do with 50K savings, investing is a no-brainer and is probably one of the first things that you’ve thought about doing. 

There are certainly many ways in which you can pursue your investment goals. 

That being said, when you are thinking about where to invest 50K, it is best to do your research and ensure that you are aware of all the finer points of whichever investment scheme you choose to go with. 

Here are some of the best investments for 50K:

  • Private Retirement Schemes

While there is no such thing as risk-free investments, this is probably one of the safest places to invest your 50K if you are looking to keep your money invested for the long-term. 

Private Retirement Schemes (PRS) are those where you voluntarily contribute your funds to a PRS provider or PRS fund manager and they invest those funds for you.

The difference between this and other investment schemes is that you can only withdraw your returns upon your retirement as it works as a booster to any compulsory employment-related retirement fund that you may already have. 

If you’re in the US, you would have already heard of some of the more well-known retirement schemes such as the Individual Retirement Account (IRA)

Here is a great guide from Nerd Wallet on choosing the best retirement schemes for your needs. 

  • Investment-Linked Insurance Schemes

This is another good place to invest 50K, as it comes with the benefits of insurance coverage and investment returns.

What usually happens when you sign up for these schemes is that a portion of the premiums that you pay for your medical or life insurance coverage are invested for you in various funds that are managed by the insurance company. 

As long as you are up to date with the payment of your premiums, you can carry out a partial withdrawal of the funds that have accumulated from the investment activities. 

Most insurance companies require you to maintain a minimum in the fund so that they can continue to be invested. 

Under normal circumstances, the returns on these funds are quite decent and you can expect your investment to grow at a steady pace.  

If you’re thinking about using life insurance as a form of investment, this article lets you know all the things that you should consider when thinking about investment. 

Investopedia also provides in-depth details of the way in which these types of life insurance plans work. 

Depending on where you are in the world and the financial regulations that govern the insurance landscape in your country, they may be marketed a little differently. 

So always make sure you read the fine print and understand the mechanics of the scheme before signing up! 

  • Stocks and Shares

This is probably one of the other obvious things that you can do with 50K. 

Keep in mind that investing in the stock market can most certainly be quite complicated. It is something that takes time and patience to learn about and of course, it can be volatile.

If you do decide on this option to spend your 50K in savings, you can choose to either be a hands-on investor and do it yourself or you can hire a broker to do the investing for you. 

If you are a beginner investor, then Investor Junkie gives you a great detailed guide to investing in the stock market. 

There are also plenty of video guides on YouTube that you can watch to get your foot into the door of the wild world of stock market investment. 

To get you started, here are some great share trading platforms that you can look at:

  • Buy Some Property

Now, when considering a property investment when you are thinking about how to invest 50K, it cannot be denied that this particular category of investment comes with its unique risk factors. 

There are a few different ways in which you can invest in properties, depending on whether your goals are short-term or if you are in it for the long run. 

If you are looking for a short-term investment, you can buy a property at a low price, put some money into renovating it to increase the value, and put it up for sale at an increased amount as soon as that is done. 

This is sometimes known as ‘flipping a property’. 

Financial guru, Dave Ramsey gives a detailed analysis here on how to flip a house and the pros and cons of embarking on this type of investment. 

This might seem rather appealing when the property market is in your favor.

 As such, timing is important. If it is not a seller’s market, then you may not be able to sell the property as quickly as you would have liked. 

This could also mean that you would have just spent a ton of money doing up a property with little or no returns. 

If, on the other hand, you are looking to buy property more as a long-term investment, you can rent it out to tenants and use that rent money to grow your income in other ways. 

Here are a few useful guides in renting out your extra space in your house: 

Again, timing is everything. Ideally, you would need to find a tenant who is willing to pay a rent amount that covers your mortgage repayments and gives you a little bit more as a profit.

As traditional as investing in property may seem at times, if you choose your moment wisely, the returns can be extremely rewarding. 

  • Fixed Deposits

This is probably the safest way to invest your 50K in savings.

In recent years, banks are getting incredibly competitive when it comes to promoting their fixed deposit products. 

Essentially fixed deposit accounts are high interest yielding savings accounts, on the condition that you lock-in that money in the account for a specific period. 

Previously, to be entitled to the high-interest earnings, you would have had to put your money in these types of accounts for a prolonged period, such as 5 to 10 years. 

However, banks have recently become more flexible with their fixed deposit products and have begun to offer similar benefits with a low amount and monthly terms so that you can take your money out any time you need it. 

However, you must keep in mind that the higher the amount and the longer your lock-in period, the higher the yield when you choose to withdraw your money. 

4.Give Back

This would of course be the most selfless and gratifying way to spend your 50K.

 Of course, it does not have to be the entire 50K. A substantial amount, however, would go a long way to those who need it the most. 

Wherever you are in the world, there is no shortage of people or institutions who could use the money.

 If you are at a loss as to what to do with 50K, here are some of the types of places you could consider giving your money to:

  • A charity that supports a cause that is close to your heart
  • A school that is for special needs children
  • Animal shelters
  • Soup kitchens
  • Orphanages

Whatever option you decide on, like all things, don’t forget to do your research into the organization to ensure that the work that they are doing is genuine and that the money is going to the cause itself and not being misused. 

Accountability is key here so ask all the questions you need to ask until you are comfortable with giving your money to your organization or cause of choice. 

5.Start a Small Business 

If you are ready to take the plunge and are equipped in all the ways you need to be, this most certainly the best return for 50K because you are essentially investing in yourself, your passions, and your growth.

Depending on your products or services, your business can be online, home-based or you can put the money towards a small physical outlet for that personal touch to your customers. 

Either way, you will need a good amount of capital or start-up money before you can embark on your own business.

That being said, starting a business is not just about having the money to do so. 

There is a lot of planning, budgeting, and strategizing along the way, not to mention long days and sleepless nights. 

As such, this particular option on what to do with 50K should probably not be taken lightly. 

If you are ready to take on the challenge, here is Forbes’ detailed 35-step guide on how to start your own business! 

Also read this article: 

Other Things That You Can Do With 50K

While there are plenty of practical ways to spend your 50K, there are also other things that you can consider using that money on if you can afford it:


The experience you get from seeing different places and soaking in the culture from all around the world is invaluable. 

With an amount like 50K, you can plan a long-term trip to the places you’ve always wanted to go. 

You can find inspiration on where and how to adventure and travel here.

Help Out A Good Friend

Did you know that George Clooney gave some of his money to his closest friends who had helped him make it big along the way? 

He even paid for their taxes! 

So, if you have a friend who could use some money, then here is your chance to help them out. 

Invest In Yourself

There is almost an unlimited number of courses that you can take to increase your value, regardless of whether you are an employee or an entrepreneur. 

This can be in the form of degree programs, postgraduate programs, professional certificates, or quick short courses. 

You definitely cannot go wrong when it comes to investing to improve yourself.

Here are some ideas on what you can do to upskill yourself:

As you can see, there are plenty of things that you can do with 50K savings. 

At the end of the day, how you use your hard-earned money is a personal choice. 

Every individual has different financial goals and priorities so you need to make the decisions that are right for you and where you are in life at that time. 

What is paramount, however, is to always do your research when you are figuring out what to do with 50K. 

Whatever you decide, you must yourself with all the necessary information and walk in with your eyes wide open. 

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What To Do With 50K: Essential Tips to Protect and Grow Your Money

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