Is $10,000 A Lot of Money?  What You Need To Know

Having $10k saved is a commendable milestone but overall it is not typically considered to be a lot of money. For a majority of Americans today, this amount may only cover 3-6 months of living expenses pending their lifestyle and where they live. 

Is $10,000 A Lot of Money?

What Should I Do with $10,000?

1. Keep It For Your Emergency Fund

If you don’t have an emergency fund already, then move this $10,000 into a savings account. Look for an account that offers interest and no random “maintenance fees” so you keep more of your money and even make some while it sits until needed. 

What Should I Do with $10,000?

2. Pay of Some Debt

It can actually elevate your savings rate and reduce unnecessary stress you might be feeling about your debt or the interest you owe on any debt. You might not want to use all $10k toward debt, but figure out what might make sense for you. 

What Should I Do with $10,000?

3. Start Investing The Money

You can start with a retirement account you might have with your employer or open a Roth IRA with a financial company. I always recommend Vanguard Index Funds, but there are a few other great options out there as well.

What Should I Do with $10,000?

4. Fund An HSA Account 

- Your money contributions are tax-deductible - Your money grows in this account tax-free - There is no tax on withdrawals if you spend the funds on qualified medical expenses

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