What would YOU do with it?

Question

I have:

checking $1800

Savings $7300

I think this is a lot of money to have in savings. What would your next step be?

Answer 1

I think that is a decent amount of money to have saved. Good for you! What is your plans / goals for the money? If you goal is just to continue saving then you should consider putting it in a CD to earn some interest. If you are thinking of saving this money for the future then maybe you should look into a 401K.

Now if I had that money I would buy a car with $5000 then put the rest in a high interest savings account. Good luck!

Answer 2

I WOULD KEEP IT THERE FOR NOW. BETTY.

Answer 3

Is your savings 6 months or more worth of your income? If not, then it stays in savings, or in a safe money market fund that is easily accessible.

Whatever is over 6 months of income... you need to look at your other investments (if any), your age, and how comfortable you are with risk. These will allow you to design a portfolio that meets your needs. Check out this site for guidance in asset allocation. http://www.educatedinvestor.com/webconte...

Answer 4

Take some of your well earned money and spend it on something like a new car or a well deserved holiday or a dream that you've always wanted to do. But really its up 2 you.

Answer 5

It depends on what your monthly income is.  I would keep 3 months of income in a money-market where it would grow but still be accessible.

A good portion of it I would dollar-cost average into an S&P 500 index fund in a Roth IRA.

Then I might splurge a little bit of it.

But there are a lot of factors such as, do you have a home yet?  If not, putting a down payment on a home and buying one in this market while they are down would be a great idea, as long as you make sure the monthly payments would be equal or not much greater than the rent you pay now (maybe even less).

Answer 6

put probably half your savings in an ISA or invest it in the market, especially now that times are in a recession so shares will be relatively low compared to what they were months ago.

Answer 7

Invest in Mutual Funds  - Find one or more that meets your risk tolerance.

I'd move the $7K to a money market to get a slightly better interest rate and then go with a mutual fund (low opening balance $500 or $ 1K  

Set it up to automatically deposit $50 or $100 or whatever you like into the Mutual fund from your money market.   This way you dont put "all your eggs in one basket"

Lets you get comfortable with the market

Dollar cost averaging so you take advantage of the market down turn by purchasing more shares

check out Janus.com or any number of funds

Answer 8

not really that much money, I have that much money in savings and i'm 13

Answer 9

put it in a money market..and let it sit there till you KNOW what you want to do with it...

Answer 10

Personally, I would continue to save until I had enough for a down payment on a house. That is of course as long as you don't need anything, or have any debt. If you have any debt, pay it off, since they charge more interest than you earn on savings. In todays economy it is a good idea to have a hefty savings account for security. Good luck!

Answer 11

My next step would be to save it all until I really need it.

Answer 12

Well my personal opinion would be to save it. The economy is very unsteady, people are loosing jobs left and right. If you feel like you wanna splurge, then at least put up half of it, oh and by the way, you can never have too much money in your savings.

Answer 13

I don't think that's a lot to have in savings but if you do then I would move into a money market account.