What To Do With 50K: Spending And Investing Wisely

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Last Updated on October 23, 2022 by Chris Panteli

What To Do With 50K

If you have managed to save up or acquire $50k, congratulations! You can spend this money in an infinite number of ways. You may be interested in spending some of it on luxury items, or on paying off your credit card debt. However, the smart choice is to prioritize strategies that protect and grow this amount. 

What can you do with 50k to make money?

This depends on how much risk you are willing to take. If you are not comfortable taking any risk, then you can put the money in a savings account, money market fund, bonds, etc. They will give you a return on investment of around 3%. If you want to take some risk, then you can invest in real estate. It takes a lot of work including time and money, but there is a chance that you will get a better return on your investment. In any case, you should always be working towards your financial freedom.

This guide will examine what to do with 50K.

1. Create An Emergency Fund

Create An Emergency Fund - what to do with 50K

People are often advised to set up emergency funds the moment they start earning. This is a wise strategy, as your first move should be to set up a safety net for difficult times. Many people find it challenging to create an emergency fund when they are living paycheck to paycheck. The advantage of having $50k is that you can set up a large emergency fund without worrying about having enough cash for other things. 

Why You Need an Emergency Fund

An emergency fund helps cover living costs or unexpected expenses during difficult times. If you have been laid off from your job or have a large hospital bill to pay, your emergency fund will help make things easier.

This fund saves you from having to sell off your possessions or take out high-interest loans in an emergency. An emergency fund is vital for anyone who wishes to maintain stability when the unexpected happens.

How Much Money Should You Devote To Your Emergency Fund?

A good rule of thumb states that an emergency fund should contain enough money to cover your living expenses for three to six months. This is generally the amount of time it takes to get a new job after being laid off. Depending on your current lifestyle, you may need to set aside between $15,000 and $25,000 aside for this fund.

For example, if your monthly rent is $1,500, your emergency fund should contain between $4,500 and $,9000 to cover this expense. Similarly, if your other expenditures such as food, transportation, and medicine amount to $2,000 per month, you will need to set aside another $6,000 to $12,000 to cover these expenses.

Once you have set up your emergency fund, you should remember to avoid touching it. These funds should never be spent on luxuries or unnecessary purchases. If you are having trouble resisting temptation, it may help to keep the funds in a high-yield savings account. This will give you an incentive to avoid touching these funds until an emergency arises.

Your emergency fund will be your safety net, so consider this portion of your 50k as an expense for peace of mind.

2. Invest

Invest - what to do with 50K

The vast majority of wealthy individuals around the globe invest their money in different places. This gives them a chance to grow their wealth and create opportunities for future investments.

There is no shortage of ways to invest 50K. Some of the opportunities we recommend include:

Giving Personal Loans

If you have ever taken out a personal loan before, you may already be aware of how high their interest rate can be. This is one of the reasons why most people shy away from taking such loans. However, becoming a personal loan lender can be a profitable venture if you have money to spare.

As a private lender, you will need to secure your investment using a mortgage or some other form of security investment. In addition to this, you must ensure that the person you are lending funds to is trustworthy. When done correctly, you can earn a 6% to 15% return rate on the loan.

Individual Stocks

The stock market can be a great place to grow your wealth. Stocks provide profits through capital gains. You may also receive dividend income from them in certain cases.

It is possible to earn a fair amount by investing part of your $50K in the right company. However, you will need to be familiar with market trends as well as the company you intend to invest in if you want to play it safe.

Investing in large companies such as Apple or Amazon can help you make a decent profit. This is in part thanks to their reliability. These companies have existed for decades, and are likely to continue growing in the future.

Investing in smaller companies tends to be riskier, as you do not know if they will experience financial difficulty in the near future. However, investing in a small company just before it strikes big could turn you a handsome profit. 

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Penny Stocks

Penny stocks are a unique category of individual stocks. They are often known as small caps or microcaps. These terms are used to refer to stocks valued at less than one dollar. However, the Securities and Exchange Commission (SEC) definition has expanded this definition to include stocks that are under five dollars.

As mentioned earlier, it can be tempting to invest in small companies with the potential for growth. After all, you never know when one of your investments could end up becoming the next IBM or Microsoft.

Penny stocks offer the potential for high reward, but they also carry high risk. They are generally traded outside of major market exchanges. You can start trading penny stocks by opening an account with a discount broker. These brokers deal in high-risk investments, hoping to make picks that will pay off.

You should be careful before investing in penny stocks due to the high risk associated with them. In addition to this, some brokers may offer biased recommendations after being paid off by micro-cap companies.

Mutual Funds

If you don’t want to be involved with the stock selection process, you may be interested in using a mutual fund instead. Mutual funds are essentially investment companies that pool together funds from various investors and purchase securities. These are generally easy to understand and invest in.

You will be required to pay a special management fee once you have purchased a mutual fund. Part of this fee goes to the fund manager. This is an experienced financial professional who manages trading activities and implements the company’s investment strategy.

Mutual funds are a great choice for new investors who would like to invest with the assistance of a professional. They also offer lower risk thanks to diversification. The average mutual fund may invest in dozens of companies, thereby reducing the average risk you take on through your investment.

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Enhance Your Retirement Account

If you already have a retirement account in place, you can pad it using part of your $50K. This strategy is especially useful if your company matches employee contributions to their 401(k). Note that you might not be able to place all this money in your 401(k) at once due to annual contribution limits.

You can contribute up to $19,500 per year under current 401(k) regulations, so you may need to spread your contribution over two or three years.

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What To Do With 50K: Spending And Investing Wisely

If you do not have a 401(k) or have already reached your funding limit, you should consider an individual retirement account such as a Roth IRA. Individual retirement accounts also feature contribution limits.

However, using one allows you to avoid the management fees associated with 401(k). An IRA also gives you access to a wide selection of investments once you open your account at a broker.

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3. Purchase Real Estate

Purchase Real Estate - what to do with 50K

Investing in real estate can be a wise decision if you know the right type of property to choose. Although 50K may not be enough to purchase an entire property. However, you may still be able to complete a down payment on one.

Many investors choose real estate because it offers them a great cash flow source. For example, if you acquire a small property with your $50K, you can rent it out and potentially earn large returns. This option is great if you can set aside time to renovate your property and manage tenants.

Some other real estate investment options to consider include:

Real Estate Investment Trusts

A real estate investment trust is essentially a company that pools funds from multiple investors. These funds are then used to purchase or develop different commercial real estate assets.

Real estate investment trusts (REIT) offer a simple and manageable way to get started with real estate investments. They have a low cost of entry, offer liquidity and passive returns.

REITs generally pay 90% or more of their taxable income to investors. This allows them to benefit from certain tax incentives. REITs can be private or publicly traded. The latter offers a straightforward investment option and is similar to purchasing shares.

Private REITs tend to be a bit more complicated and come with barriers to entry. They typically feature a minimum investment requirement and can’t be traded as easily as public REITs.

REIT Exchange-Traded Funds

If you look up publicly-traded REITs at the stock market, you will likely find hundreds of options to choose from. However, you may be interested in choosing an option that offers diversification prospects. This is where exchange-traded funds (ETF) come in.

ETFs are essentially funds that hold interest for multiple asset classes. They follow a predetermined benchmark such as S&P 500 or their own REIT index. Purchasing a share in an ETF allows you to invest in multiple companies at once. These setups offer low risk because your investments are spread across multiple companies in different sectors.


Homesharing is a popular way to utilize real estate you already own. Sites such as Airbnb and Vrbo have made it easier to earn money off short-term rentals than ever before. You can devote part of your 50K to renovating your current home or creating a partition for guests.

Depending on your location and the type of home you own, you could potentially earn $1,000 or more per month. Modern home-sharing services also include host guarantees that keep you covered in the event a guest damages your property. Home sharing is a great choice if you can devote a bit of time to promoting your home on home-sharing websites.

Purchasing Land

As mentioned earlier, $50K may not be enough to purchase a complete property. However, this amount may be enough to purchase land. This option offers both high risk and high rewards, so you should do plenty of research before taking the plunge and putting down $30K on an undeveloped plot.

There are many different types of land investments to choose from. This includes:

  • Commercial development land
  • Residential development land
  • Small farm investments

Commercial and residential development land is a great choice if you want to make your first land investment. There are likely hundreds if not thousands of land investment options in your area. This large number allows you to choose one that fits with your capital and time constraints.

Small farm investments are suited for small investors who wish to invest less than $30K. These include mineral development lands, timber farms, orchards, and vineyards.

What To Do With 50K: Spending And Investing Wisely

You should note that land investments tend to be risky because they rely on speculation. There is no guarantee your investment will appreciate in value over time. In addition to this, your undeveloped land may not generate any income. For this reason, many investors choose other real estate investment options instead.

Recommended: How to Start an Urban Farming Business

4. Build New Skills

Build New Skills - what to do with 50K

If investing in assets isn’t your thing, you should consider investing in yourself. You can use part of your $50K to learn new skills that will benefit you in different ways. Some great choices include:

Public Speaking Skills

Public speaking skills are valuable for just about everyone that is seeking financial success. Great public speaking skills can help you win over a crowd of rich investors and get funding for your business ideas. If your public speaking skills become especially noteworthy, you may be able to earn money as a keynote speaker for private events.

It is possible to learn public speaking simply by listening to enough skilled speakers. However, it may help to invest in a public speaking course that gives you the chance to learn the finer details of this art form and apply them.

Leadership and Management Skills

Leadership and management skills can help you in your career significantly. Learning these skills enables you to communicate more effectively. They also teach you how to adapt to and utilize multiple forms of communication. When used correctly, you can use your newfound communication skills to improve employee engagement and team performance.

Learning management skills also lets you gain a deeper understanding of your role as a manager. After all, a manager’s main goal is to be effective at coordinating and accomplishing organizational objectives.

Management skills teach you how to get things done by utilizing other people. They also teach you about decision-making processes for making smarter decisions.

Video Production and Editing

You don’t need to be a film buff to understand the benefits of developing video production and editing skills. Such skills open the door to working with promotion and marketing companies. Freelance video producers and editors earn an average of $20 per hour. However, they may be paid more if they are hired to complete production and editing work for larger corporations.

You can use some of your $50K to purchase a powerful laptop that is capable of handling video editing tasks. You can then take online video editing courses to improve your skills and expand your knowledge.

If you are multi-talented, you can use your newfound skills to start your own Youtube channel and attract an audience.

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Investment Management

Earlier we discussed fund managers and their role in making mutual funds a relatively safe investment. These professionals are able to make smart investment decisions because they have learned the ins and outs of investing. 

You too can learn about managing investments by taking investment and portfolio management courses. These courses are designed to teach you about investment theory. They equip you with the skills needed to create, execute, and assess investment proposals to meet a particular financial objective.

You can then start trading using your newly gained knowledge and make investment decisions similar to big-name investors. Your investment skills will only improve as you get more practice with new investments. Learning investment management skills is one of the best ways to take your $50K and turn it into something much bigger. Consider this option if making money is your top priority for the future.

5. Go Back To School

Go Back To School - what to do with 50K

If you were unable to complete your education in the past due to financial constraints or other factors, you may be able to do so in the present thanks to your $50K.

There are plenty of great reasons to go back to school. One of the main ones is to improve your current situation. Many people who never finished high school or attended college find it difficult to work their way up in their careers. If you can take out a few years to finish school and earn a degree, you can improve your career prospects greatly.

Some great professions you can pursue after going back to school include:

Software Developer

The tech industry will likely continue growing at a rapid pace in the near future. This means there will always be jobs available for software developers. These professionals earn around $100,000 per year on average.

A typical software developer creates programs for various devices such as smartphones, tablets, and computers. You can become a software developer by earning a Bachelor’s degree in computer science or software engineering. This degree typically takes around 4 years to complete.

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Medical Administrative Assistant

If you are interested in working in the medical field without dealing with patients directly, you should consider becoming a medical administrative assistant. Entry-level positions in this field require only a high-school diploma. However, you may be able to land better roles by completing courses centered around medical administrative duties.

Many technical schools and community colleges offer such courses. You can earn a medical administrative assistant associate degree in as little as 18 months. The average salary for medical administrative assistants is around $38,000. 

Search Engine Optimization Specialist

You may or may not already be familiar with the term “search engine optimization” (SEO). This term refers to the practice of creating and fine-tuning digital content for marketing purposes. Plenty of businesses in the digital era seek out SEO specialists to promote their brand and boost their web traffic.

If you choose to study SEO, you will get to learn about web development, market research practices, and advertising techniques. The average salary for SEO specialists is around $55,000 per year. 

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What To Do With 50K: Spending And Investing Wisely

Most SEO specialists complete digital marketing programs that take 4 years to complete. However, it is also possible to break into this field with a Bachelor’s degree in communications, internet marketing, and information technology.

6. Start A Business

Start A Business - what to do with 50K

Plenty of people dream about starting their own business at some point in their lives. However, they often shy away from doing so due to the high costs of pursuing such a venture. 

A Business Idea - You Can Start Today - Potential Full Time Income

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If you have $50K in savings, you are in a prime position to start your own business. These funds are enough to create a small business with the potential to earn you a sizable income. Some great small business ideas include:

Running a Food Truck

Starting a food truck is a great option if you want to break into the food industry. This option is less expensive than starting a restaurant and gives you the freedom to try different things.

If you intend to pursue this venture, you should familiarize yourself with the various permits, licenses, and fees involved with running a food truck. You will also need to factor in the cost of purchasing a truck as well as food preparation and storage equipment. However, it is possible to get all this done in around $50K.

Once your business is set up, you can target customers in different locations. If your venture is successful, you may be able to expand with a second food truck. Once you have earned enough revenue, you may even be able to open your own restaurant.

Candle Business

If you would rather pursue a more affordable business venture, consider making and selling your own candles. This option is great if you are interested in wicks, candle blends, and perfecting different scents.

To start a candle business you will need to source the right raw materials such as wax, wicks, and oils. You will also need wax melting pots, tins, molds, measuring instruments, and packaging supplies. All these supplies can be acquired for under $2000.

You will then need to find retail outlets to sell your candles at. However, plenty of candle sellers advertise their products online and ship them to customers directly. A candle business may be less risky than starting your own food truck. However, the potential profits may not be as high.

Event Planner

Are you a wiz at planning events? Then becoming a professional event planner may be the right choice for you. The event planning industry is currently worth $500 billion and will likely continue to grow into the future.

Before deciding to get into this profession, it is worth asking yourself a few questions. This includes:

  • What type of niche you would like to fill.
  • What is your ideal client?
  • How will you promote yourself and your new brand?
  • How will you charge clients?

You should note that event planning can be a relatively stressful profession. You will need to coordinate multiple things at once and ensure everything is ready by a certain deadline. Consider becoming an event planner only if you are self-driven, possess excellent organizational skills, and are capable of handling stress.

As an event planner, you will need to put in an initial investment of $10,000 to $30,000 depending on your exact niche. People in this profession earn around $50,000 per year. However, event planners that have built up a reputation may be able to earn hundreds of thousands of dollars per year.

Mobile Pet Grooming

Mobile pet grooming is a less common profession than the ones mentioned above. However, it can be incredibly profitable for those willing to put in the effort required. Most people love their pets deeply and are willing to fork out cash to ensure they look and feel great.

A mobile pet groomer travels to owner’s homes and performs grooming services using vehicles fitted with special equipment. Such services are frequently used by elderly or disabled pet owners who cannot take their pets to a salon for grooming themselves.

Start-up costs for mobile pet grooming can range from $10,000 to $100,000. This makes it possible to start your own business using your $50K. You also do not need any educational background to become a pet groomer. It is possible to learn this trade by completing a 6 to 10-week long apprenticeship program. Mobile pet groomers earn an average of $43,000 per year.


Landscaping is another great small business idea. This profession can be incredibly competitive, so you will need to be motivated and resourceful to succeed in this industry.

Landscaping businesses help install and maintain gardens, yards, lawns, patios, and related grounds. Some core duties include:

  • Mowing grass
  • Trimming trees and bushes
  • Maintaining flower beds
  • Watering and fertilizing plants

Breaking into the landscaping industry can seem tough at first. However, if you do a good job with your landscaping projects, you may earn repeat customers who will continue using your services indefinitely.

Many established landscaping business owners purchase special equipment that can cost tens or even hundreds of thousands of dollars. However, it is also possible to rent landscaping equipment for a fraction of this amount. Small landscaping business owners earn an average of $59,000 per year.

7. Charity And Philanthropy

Charity And Philanthropy - what to do with 50K

If you are financially stable and would like to devote part of your $50K towards causes you believe in, there are many options to choose from. 

Many people use the terms philanthropy and charity interchangeably. However, there is a distinct difference between the two. Charity aims to relieve the impact of a societal problem. On the other hand, philanthropy aims to address the problem’s root cause.

Some common examples of philanthropy include:

  • Setting up programs that teach people in rural areas how to grow food.
  • Donating to public educational institutions in poor neighborhoods.
  • Volunteering to help build wells in regions with water supply issues.

If you would like to help people more passively, you should consider donating to a charity of your choice. Some great charity organizations to target include:

World Central Kitchen

The World Central Kitchen focuses on providing fresh food to people who cannot afford it. They have served over 25 million meals since they were founded in 2010. The organization works with restaurants directly and has played a key role in getting food to those who need it the most.

Heart to Heart International

If you would like to help people globally, Heart to Heart International is a great organization to donate to. The organization ships medical supplies to over a hundred countries and has provided over $2 billion in aid to areas where medical treatment is difficult to attain.

American Humane

Want to help stray and abandoned animals across the nation? Then American Humane is the right organization for you. The organization focuses on caring for all types of animals in America. They help these creatures find urgent care, shelter, and happy homes.

Final Thoughts

As you can see, there is no shortage of ways to spend $50K. Many of the options listed above cost far less than $50K. Therefore, you may be able to do multiple things with this amount. Be sure to consult the above list the next time you feel tempted to go on a shopping spree with your $50K. 


Is a 50k salary good?

It depends on how old you are. If you are 26, then a 50k salary is good. There is no standard salary that is good for everyone. Salary has the highest correlation to the amount of experience you have. So if you are 26, then 50k is good. You should save more than you spend, invest, etc.

Is 50k good savings?

50k is a good savings amount. It will help you to save money for the future, and it is a lot more than most people are saving. The key is to set a goal and stick with it.

Can I buy a house if I make 50k a year?

Yes, you can buy a house if you make 50,000 a year. In fact, you can buy a house if you make $50,000 a year and you have a down payment of 3%. But you might want to think about it more carefully. You should also consider how much you are willing to spend on your mortgage. Also, you will want to make sure that you can afford the payments.

What would you invest 50k in?

If you are looking for a way to invest 50,000 dollars, then there are many options. You can buy a home, you can invest in stocks, you can invest in a business or you can invest in real estate. If you want to invest in real estate, then you should look into buying a house or condo. Buying a house is a great option because you will be able to live there for years to come, and you will be able to use the equity that you built up to help you with your retirement.

Can I flip a home with 50k?

If you are looking to flip a house, you will need to have some cash on hand. You will need to put down at least $5,000, and you will need to find a property that is worth at least $50,000. You will also need to have some money saved up, as you will need to make an offer to buy the house. The bank will need to appraise the house before they will agree to give you a loan. This process can take several weeks, so you will need to plan ahead.

Is 50k a lot of money?

I don’t believe there is any universal definition of what is “a lot of money”. Ultimately, it all comes down to the amount of money someone is willing to spend on their desires. If you are content with just surviving each day, then yes, 50k might be a lot of money to you. But if you are interested in having more financial freedom, are willing to do whatever it takes to have it, then 50k is not a lot of money to you. Each person’s definition of what is “a lot of money” is different. But what is agreed upon is that it really depends on what that money is being used for. Most people don’t think of money as an “investment”, but it is. And investing is something you do with the money that will give you more money later on. So if, for example, you are saving up to buy a house, then yes, 50k will go pretty far. But if you are using it to buy a new car, then no, 50k is not a lot of money. It all depends on what you are saving up for.

What To Do With 50K

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