# What would YOU do with $10,000?



## FirstYearDown (Sep 15, 2011)

Last summer I was hit by a car. I was jaywalking and the driver was speeding. My left hand was broken and the jerk left me in the road crying. He also made a threatening phone call and chewed me out for breaking his mirror. 

I wasn't going to sue him, but the cavalier way he handled the accident along with the angry threats changed my mind. My left hand will never regain the strength it once had and there is still pain whenever it rains or when it is very cold outside.

Our marriage was strengthened by the aftermath. My husband patiently helped me bathe and dress, along with attending my physio appointments. He was angry that I was jaywalking; my husband asked me to stop doing that more than once prior to this accident. I am lucky to be alive; a few more steps and I would have been dead.

The case was settled for 15,000 and I am left with 10,000 after legal fees. This is a huge blessing considering my husband and I are in a lot of debt. I know $10,000 is not a great deal of money to the well heeled members of TAM, but it is a lot of money to us broke folk.  Even though it is my settlement, I will be sharing this windfall with my husband. He has been so generous to me financially over the years-my husband pays my college tuition and handles all the expenses. 

We are going to pay off some of our debts and buy some much needed furniture. I am taking my husband on a three day anniversary getaway next month. A friend of mine mentioned government bonds which sounds like a great idea. I am also going to save the rest for an emergency. 

What would you do with $10,000?


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## nandosbella (Jul 6, 2012)

im not a fan of bonds. Unless you really have the time to let them fully mature (30 years) then its not worth it. Plus you pay tax on the interest. but if you wanna wait ive seen some amazing bond redemptions. Once i cashed a $1000 bond from the 70s for around 5k
_Posted via Mobile Device_


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## nandosbella (Jul 6, 2012)

but to answer your question.... Id save half for a rainy day and the other half id blow on a ridiculous vacation.... Morocco, Japan, or Amsterdam. Anyway, enjoy your settlement! Woot woot!
_Posted via Mobile Device_


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## FirstYearDown (Sep 15, 2011)

I don't know very much about bonds at all. I need to research it.

I would take an amazing vacation, but we have too many bills to pay and furniture to buy.


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## YinPrincess (Jul 31, 2011)

I'd put a downpayment on a home or pay off debts. Accomplish small tasks like fixing my vehicles and moving into a better house. Congrats on the suit! Have fun, first and foremost!! 
_Posted via Mobile Device_


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## RandomDude (Dec 18, 2010)

First thing that I would do if I had $10,000? Well that's an easy answer...

I'll hide it from my wife!!!


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## Bobby5000 (Oct 19, 2011)

Try to eliminate some higher interest charge cards. Reduce the interest you are paying each month.


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## couple (Nov 6, 2010)

Keep $2000 for savings and pay off debt with the rest (with the caveat that I have no idea about your debt or savings levels).

I don't know what country you are from so it's hard to answer the question on bonds vs other forms of savings (e.g. how are bonds taxed where you are from and what other savings programs are available that might have favorable tax treatment).


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## Caribbean Man (Jun 3, 2012)

You live in Canada?

Then this is my two cents worth..
Many years ago,I invested $2000.00 in the Royal Bank of Canada. [ RBC]

Today my shares are worth much more.
Before the end of this year, I am going to invest a huge amount again,and leave it for the long run.[ 10 yrs ]

I used to dabble in stock markets and so forth, but I lost some money due to the 2008 meltdown. Markets have not fully recovered yet.[at least not in our country] No sense risking anything there unless you are an expert.

Just invest a portion of that money in a secure mutual fund,and leave it there, along with the interest.

Just my two cents!


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## Sbrown (Jul 29, 2012)

First and foremost before doing ANYTHING with that money. Buy, read and live Dave Ramseys book "The Total Money Makeover" It will change your life and give you ALL the financial advice you will need. My wife and I paid off over 64,000$ in debt in 18 months following his plan. Read it! It will change your life!


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## Runs like Dog (Feb 25, 2011)

Replace the roof.


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## FirstYearDown (Sep 15, 2011)

RLD, I rent so the roof is not my problem. 

$10,000 is not enough for a house down payment in this city, not to mention the closing costs. We would have to leave here to buy and neither of us want to leave. Great suggestion though! 

I love the mutual funds idea. The bonds have a minimum investment of $5000 and I don't want to put half the money into bonds. I have too many bills to pay.

Bobby5000, you are a man after my own heart. We are paying off some of our credit card debt that we racked up to live when my husband lost his job.

Maybe I should buy some grillz! :rofl::rofl:


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## that_girl (Jul 6, 2011)

THOSE GRILLS ARE SO UGLY! :rofl:

H and I hope to get $9,500 for one of his cars and pay off some debt....and maybe squeeze a weekend away out of that money.

We just sold the truck...so that helped pay off one big bill  

We're movin' up!


But if I just had $10,000 to blow....amg. I'd put half in the bank and take the other 5k and go to Liverpool on my Beatles tour for 2 weeks


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## Gaia (Apr 27, 2012)

Hmm would definately pay off debt! Or.... put a downpayment on a mobile home, land, or car!
_Posted via Mobile Device_


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## Cherry (Sep 23, 2009)

I hope to have this dilemma in a few weeks . Two more house showings today! 

To answer the question... For now if we sell our house for full asking price, we'll have close to that and plan on tucking most of it away for a little while. Might take a belated (6 years now) honeymoon and get another pair of Ariats


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## CantePe (Oct 5, 2011)

Fellow Canuck huh. I'd pay off debt. I rather live debt free with an fair income coming in.

No debt = better budget to work with.


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## unbelievable (Aug 20, 2010)

Invest in high growth small cap stocks and turn it into $14K within 12 months.


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## FirstYearDown (Sep 15, 2011)

CantePe said:


> Fellow Canuck huh. I'd pay off debt. I rather live debt free with an fair income coming in.
> 
> No debt = better budget to work with.


:iagree::iagree:


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## Sbrown (Jul 29, 2012)

unbelievable said:


> Invest in high growth small cap stocks and turn it into $14K within 12 months.


Would you put those "investments" on a credit card????


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## FirstYearDown (Sep 15, 2011)

I am very wary of playing with the stock market, Unbelievable.


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## Juicer (May 2, 2012)

$10,000?!?

That is enough to pay the rest of the legal bills that I am still dealing with from my most recent legal trouble! 

But if I didn't have that problem:
I would buy what is called income stocks. 
Designed to hold their value, and pay you a dividend. The dividends will give you more money than interest alone will, and while the stocks will fluctuate, the overall value of them should remain at (hopefully) $10,000. Some may go up, some may go down, but that is why you don't put all your eggs in one basket.


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## rj700 (Jun 22, 2012)

FirstYearDown said:


> I am very wary of playing with the stock market, Unbelievable.


Investing when you have debt (perhaps aside from a mortgage) is losing money. I would take the debt with the highest interest (not necessarily the biggest debt) and pay that down first. 

Another strategy would be if you could pay off one debt entirely. If so, pay it off and use the monthly payment you "saved" to put towards the principal of another debt (highest interest debt). This gives you the most bang for your buck.


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## Runs like Dog (Feb 25, 2011)

Go minority partner in a business that needs $10,000 to expand.


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## Trojan John (Sep 30, 2011)

The number one step to getting ahead in life is to be debt-free. I would suggest that you don't spend it on things that you don't need or other frivolities.
_Posted via Mobile Device_


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## FirstYearDown (Sep 15, 2011)

While $10,000 is not enough to pay off all of our debts, it is enough to make serious dents in the monthly payments.

As for things we don't need, I know that we desperately need some furniture. That might be hard for more established people to understand.

The only frivolous activity we are indulging in is going away for a couple of days, in order to celebrate our anniversary. I was kidding about the grills.


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## Greg40 (Aug 11, 2012)

It's always good to have an emergency reserve. 3 months monthly outgoings is normally recommended but $2k is a nice start. Tuck it in an account where you have to withdraw inside the bank if you might be tempted to spend it.

Id maybe allow the family some treats (maybe $500 or so total) then pay off debt with the rest. 

Not paying banks for borrowed money and interest will not only give you more "real" disposable income but, along with the reserve you're buying some piece of mind too.

You pay off debt, get to keep a bit and spend a bit.


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## KellyK (Sep 4, 2012)

If you have debt, and $10,000 is a lot to you - then you should save and invest no less than $7500 of that money and use the remainder to pay down your debt. 

If you need furniture that badly, spend your weekends going to flea markets and good resale stores and buy some inexpensive used furniture.

If your net worth is negative, then you don't actually have $10,000. Also, this money was paid to use for permanent injury to your hand. This injury will likely affect your ability to earn your maximum income or perform certain much needed job skills.

Be smart and save your money. When your debt is paid off, you can always save up for new furniture.


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## In the Rough (Sep 5, 2012)

We have a lot of debt as well so I would put a little in savings, do some minor repairs around the house and send the rest to the credit card companies.


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## Matt1720 (May 7, 2012)

something so painfully practical it hurts, i.e. RLD's example of the roof.


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## Jane_Doe (Aug 9, 2012)

H and I are somewhat in the same boat, we have debt and are probably straddling the border between lower-middle class and working class (wherever that is these days...). $10k would be enough to fully pay off our debt though, so we'd be $500-800 richer per month by not having to make payments towards them. So for me right now it'd be a no-brainer, since I'd get that 10k back plus more in less than 2 years in accessible monthly income.

But while I would *advise* you use 90% of it to pay off the debt, when we were sleeping on a half-flat air-mattress in our unfurnished apartment and had to keep the curtains closed in case someone saw how we lived, I wasn't ashamed to get furniture on (interest-free) credit and blow our tax return on getting the apartment furnished/decorated how I like it.

I figure we should have a nice comfy sofa to sit on for when we can't afford to go out


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## heartsbeating (May 2, 2011)

So........drinks are on you at the TAM convention? 


Right now, we need some renovation work in our bathroom and kitchen so it'd go towards that. It's not cosmetic, this place is old and it needs a little TLC. That's what we'd do.

If we didn't have that to think about, we'd likely be thinking a trip to Japan lol.


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## Cherry (Sep 23, 2009)

Can I get in on this? We are officially under contract on our home! So now we have close to that... But I won't hijack


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## ScarletBegonias (Jun 26, 2012)

if i was given 10k I would likely spend a few hundred on work clothes and shoes. I'd donate a few hundred to my favorite shelters. Then I'd save the rest for emergencies. i don't have any other debt aside from the usual living expenses like rent and stuff but my paycheck covers that.


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## gbrad (Jul 20, 2010)

Pay off some debt. That would atleast put a dent into it.


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## MrWombat (Feb 16, 2012)

No investment, no investment on the planet will give you a better rate of return than *PAYING OFF YOUR DEBTS*. It's just *basic* *math*.

Get out of debt, and - here's the hard part - DON'T TAKE OUT MORE.


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## MrsKy (May 5, 2012)

The OP stated more than once that she will be paying off a portion of her debts. I don't think she is stupid for thinking about investments either. Some of the posts in this thread are a little bit condescending...


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## CandieGirl (Apr 27, 2011)

I'd blow it all on candy at the corner store (dep to Canadians from Quebec)!


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## AbsolutelyFree (Jan 28, 2011)

I'd use it all for paying debt and responsible things.


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## southern wife (Jul 22, 2011)

ScarletBegonias said:


> if i was given 10k I would likely spend a few hundred on work clothes and shoes. I'd donate a few hundred to my favorite shelters. Then I'd save the rest for emergencies. i don't have any other debt aside from the usual living expenses like rent and stuff but my paycheck covers that.


I'm with you. My paycheck covers my 1/2 of our mortgage, my 1/2 of our boat, my car payment, and my credit cards - I pay them off monthly and they build up cash back rewards!  

So, if I had an extra $10,000 on top of what's in my savings account, I might use some of it to start adding on a laundry room to the house - not touching what's in my savings account! 

Or, I'd put $5,000 in savings, spend $2k or so on a nice Caribbean trip for us..............which still leaves $3K.... :scratchhead: I guess I'd use that $3K for our 10 year anniversary trip in a year and a half.


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## I'mInLoveWithMyHubby (Nov 7, 2011)

Pay bills. What's left goes in some sort of savings for retirement.


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## shenox (Sep 12, 2012)

honestly, you can't do much things with $10,000. So it will be better you invest them on government treasury bonds.


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## See_Listen_Love (Jun 28, 2012)

FirstYearDown said:


> We are going to pay off some of our debts and buy some much needed furniture. I am taking my husband on a three day anniversary getaway next month. A friend of mine mentioned government bonds which sounds like a great idea. I am also going to save the rest for an emergency.
> 
> What would you do with $10,000?


It seems that you make a sensible choice, except the government bonds.

Stick to the pay off of some debts
Some furniture
The holiday
A new emergency savings account for the rest.

A picture of the holiday on the wall will be a great reminder of these choices.

DO NOT invest the money in stock, bonds, etc. etc.

That can only be done with money you don't need for the long run, and even then some people lose all their savings ( Enron). Bonds are not without risk either!

(although I do invest myself on a small scale, it depends on the total picture)


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## FirstYearDown (Sep 15, 2011)

Thanks everyone! I am not going to bother with bonds anymore; just going to stick to my original choices.

Leaving for our getaway tomorrow! So excited!


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## Freak On a Leash (Feb 19, 2010)

Have fun! 

What would I do? I don't have any debt. I also don't have much in the bank in the event of an emergency or any real savings.

I'd take a few hundred dollars and go on a trip this summer for my 50th birthday. I've always wanted to go to Newfoundland. 

I'd set some aside to use for divorcing my husband. 

I'd put some of the money in the bank in case of emergency (car repairs, unexpected expenses) but most would go into savings so that I'd have cash at a later date. At some point, when my kids are on their own, I want to make some real changes in my life and having a nest egg would be a great thing.


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## east2west (Oct 19, 2012)

First of all make sure you have some cash available in a rainy day fund in case you have an emergency that requires cash.

Then pay down your debt. Don't buy bonds, stocks or any other investment unless you have already paid off all of your debt. The interest on your debt will be more than the return you can get from any of those types of investments. You should pay off your debts in the order of decreasing interest rate. So if you have two loans that charge 10% and 15% interest make sure to pay off the 15% loan before the 10% one.


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## Homemaker_Numero_Uno (Jan 18, 2011)

Well, for you...pay off debt.

Make it a stay-at-home vacation - stretch out a certain amount of the $ to have a few extras you'd usually go without...stuff like a new bath mat can take the place of such a bathmat existing at a resort...rent a movie, get take-out, buy some new clothes...

Furniture, just because you can buy new doesn't mean you should. Look for used deals. Don't be in a hurry to choose from what's available right now, take your time. 

Put whatever you don't use for debt, vaca option and furnishings into savings. 

From the savings, you can invest in dividend reinvestment program stocks. You can get these from an organization like NAIC (investment club you can join as an individual.) 
You SHOULD NOT make your investment all at once. From your point of view, you may be saying ohhhhh, I have money now so I should invest now. That timing is incidental, by chance. You don't want to base your market timing for investment on that external event (lawsuit) that's in no way related to the market. Remember, investing is all about buy low, sell high. In order to invest successfully, you need to spread out your buying...otherwise you're really rolling the dice once, rather than multiple times. The bell curve is your friend, my dear.

****

If *I* got 10K, I'd pay off my car, and put new tires on it.

I already have a plan (tax return) to pay off credit card debt, so for once don't have to worry about this.

I'd have some $ left over so I would use it to go to Mongolia this summer. 

Definitely you need to have a buffer, so don't invest if you need to have savings to avoid financial crises. 

One thing maybe not considered, is to use the money to DOWNSIZE. By downsize what I mean is to perhaps purchase less car than you have now, and to use the money to buffer any amount you take as a 'hit' to do that...maybe rent a storage unit and put it in stuff you plan to sell as a result of downsizing...and to move into a smaller apartment, using the $ for moving expenses. 

DOWNSIZING is a SURE WAY of turning your windfall into a successful investment, because you are then in control of the reduced expenses of day to day living...for instance you could move to a smaller, more affordable place that's closer to your places of employment/school. Most people think oh, I got money I'll use it to improve my life, and that usually means more/bigger. Thinking small and leveraging the lifestyle change with the windfall guarantees you more money in your pocket, over the long term.


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