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What would you do with $10,000? Here are 10 great ideas on the best way to invest $10,000 and responses from the Dough Roller community who were asked this very question.

A few weeks ago in the Dough Roller weekly newsletter, I asked the following question:

“What would you do if you came into $10,000?”

I received a lot of answers.  What surprised me about the responses were how similar they were.  They varied in the specific details of how people would spend $10,000, but they shared one thing in common–most would use the money to improve their finances.

Most people would pay off debt, put the money into an emergency fund, or invest the money. Some invested for short-term goals, some for long-term goals. In almost every response there was at least one purpose that would improve the person’s overall financial situation.

The responses got me to thinking about another question that I didn’t ask: What would you do with $10? How would the answers be different?

The Power of Consistent Investing

Why do we treat large lump sums of money different than small monthly amounts? We tend to treat larger amounts in a more thoughtful way. Perhaps that’s why it’s easier for some to save a tax refund even when they struggle to save money month to month.

Maybe we need to treat small amounts of money more thoughtfully, too. After all, how we handle small amounts of money has an impact on the bigger picture.

Here are some reasons why we don’t take smaller sums of money more seriously:

  1. It’s hard to internalize compounding–we just can’t imagine $10 growing in any meaningful way.
  2. Spending small amounts doesn’t feel like it’s “bad” like blowing $10,000 would.
  3. Delayed gratification is required when saving small amounts of money.

Consider how you handle small amounts of money and how small daily decisions could improve your finances over the long-term. You may be surprised.

Now let’s look at some ideas on how to invest $10,000:

1. Invest With Betterment

Betterment is one of several robo-advisors offering an easy and inexpensive way to invest. You can open a taxable account with Betterment. It’s an ideal way to get started because there are no minimum requirements and Betterment walks you through the step-by-step investment process. Once your account is set up, Betterment rebalances it automatically and reinvests your profits.

2. Invest in stocks with You Invest by J.P. Morgan

Today, the news is filled with talk about the wild swings from the stock market and if you have cash to invest, you can make a lot of money buying low.  You Invest by J.P. Morgan is an online discount broker that offers free stock trades, free options trades and free ETF trades.

Everything can be traded using the Chase Mobile App and they’re offering a fairly lucrative bonus to attract new business (if you have at least $25,000 to deposit).

  • $200 cash bonus if you deposit at least $25,000
  • $350 cash bonus if you deposit at least $100,000
  • $725 cash bonus if you deposit at least $250,000

(All accounts must be funded at these levels in the first 45 days and remain in the account for at least 90 days)


3. Invest in a 401k to Get the Company Match

Without question, the best investment is an employer match of a 401k, 403b, or other workplace retirement plan. This is the closest thing to a free lunch you can find. If your employer matches a portion of your retirement contribution, make sure you invest enough to get 100% of the match.

4. Max out an IRA

This won’t take up all of $10,000 (the IRA contribution limits are lower), but it’s an excellent start. The great thing about an IRA is that you are in total control. You decide where to open the account and what to invest in. And that brings me to number three.

5. Invest in a taxable account

Once you’ve maxed out your retirement plan contributions, open a taxable account. My favorite options are Vanguard (See Podcast 73) and Betterment. With Vanguard, you can invest in a target date retirement fund (yes, you can own these funds in a taxable account). Similar to a robo-advisor, Vanguard rebalances for your and reinvests your dividends. Alternatively, you can use Betterment much the same way you would with an IRA.

6. Pay off high-interest credit card debt

Paying off a credit card that charges double-digit interest is a guaranteed excellent return. There is no risk of an investment going down in value. You can also save a small fortune in interest. To supercharge this investment strategy, take advantage of a zero interest rate balance transfers if possible.

7. Increase your emergency fund

This may not be the sexiest way to put $10,000 to work. But it sure is a smart way. Living paycheck to paycheck is never fun. Aim for at least three months worth of expenses in your emergency fund. We recommend keeping your emergency money in a high yield savings account to maximize your earnings like Chime. Chime offers a terrific online savings and checking account geared toward savers.

Our second favorite account right now is the Citi Accelerate Savings.  Account balances earn an impressive 1.00% APY and there is no minimum to open an account.

8. Fund an HSA account

If you have a high deductible healthcare plan, be sure to fund an HSA account (see Podcast 67). Contributions are tax-deductible, and your money grows tax-free. If you spend the funds on qualified medical expenses, there is no tax on withdrawals either. It’s like getting the advantages of both a traditional and Roth retirement account.

Our favorite HSA comes from Lively; which offers a terrific savings and investing account with no monthly maintenance fees. The savings account includes an APY of up to 0.01% and the investing account uses the TD Ameritrade platform, which means trades cost nothing to execute.

Open a Lively HSA or read our full Lively HSA review

9. Fund a 529 account

A 529 account is a tax-advantaged way to save for a child’s education (see Podcast 113). Not all 529 programs, however, are created equal. Keep in mind that you don’t have to use the one in your state, although there could be good tax reasons to do so. Regardless, a 529 account is a great way to put some of your $10,000 to work.

10. Start a CD Ladder

CD ladder enables you to increase the yield you can earn on an FDIC-insured bank account. By staggering the maturity date of 5-year CDs, you get both higher rates and access to your money. Check out our 5-year CD rates for some of the best offers available today like Discover.

EXTRA. Buy Worthy Bonds

Worthy Bonds can be purchased in amounts of just $10 and are used to fund qualified U.S businesses.  The rate of return on a Worthy Bond is a fixed 5%, which means that after one year, your $10,000 in bonds will have yielded a cool $500.

The term of the Worthy Bond is 36-months but it can be cashed in at any time, without penalty.  Interest is paid weekly and all U.S investors are welcome to buy Worthy Bonds.  Funds raised from Worthy Bonds are used to help fuel small businesses via asset-based loans. Check out Worthy Bonds or read the full Worthy Bonds Review here.

Bonus: Automate your Investments

Robo advisors are a great way to make sure your money is working for you without the hassle and stress of actively managing it. Below is a list of our favorite robo advisors and some information about each. If you’re interested, here’s a more in-depth breakdown of each robo advisor and how they can help you put your finances on autopilot.

Ally Invest: Ally Invest has come up fast in the investment brokerage space.
They offer trading in stocks, bonds, options, Forex and futures. You can also trade in thousands of mutual funds and ETF’s.

Ally Invest is particularly well-suited to active traders, due to its almost non-existent commission schedule. All stock trades carry with them a $0 commission cost and options trades are also $0 each, but with a fee of $0.50 per contract.

Ally Invest is recognized for having one of the top trading platforms in the industry. They offer customer support 7 days a week from 7 am to 10 pm ET by both phone and live chat.

Betterment: If you prefer a hands-off approach, Betterment does most of the work for you by automatically reinvesting dividends and rebalancing your portfolio. When you use an automated service like this, you’re likely not checking it everyday and won’t be tempted to make any major changes that could cost you money. Having a service like Betterment manage your investments could allow your money to grow more quickly over time.

Wealthfront: For young adults new to investing, Wealthfront is a robo-advisor worth a look. Wealthfront stands out in being a true robo-advisor with a fee structure suitable for investors with less than $2 million to invest.

Pesonal Capital: Personal Capital provides you with a dedicated investment advisor that you can reach by phone, web conference, online chat or email. While their Wealth Management service is available for a fee, one of the best features of Personal Capital is their free financial dashboard. You can always sign up for Personal Capital for free and then decide to add their Wealth Management service later. In the meantime, you can take advantage of the following features: 401k fund allocation analyzer, retirement planner, investment checkup tool, net worth calculator, and cash flow analyzer.

TD Ameritrade: TD Ameritrade is another option and covers both self-directed investing and professionally managed investing, or a combination of both. You can learn all about TD Ameritrade here.

Wealthsimple: For new and small investors, Wealthsimple lets you open an account for as little as $1 and also features a Socially Responsible Investing Portfolio (SRI). SRI Portfolio allows you to invest in companies with low carbon emissions, companies that support gender diversity and businesses that support affordable housing.

Ellevest: For a female-focused approach to investing, check out Ellevest. There are no fees for opening or closing your account and there’s no minimum to start. There’s a large mix of asset classes available to invest in and Ellevest can tailor a portfolio just for you.

E*TRADE: You’ll find a portfolio for every budget here and can get started with just $500. If you want to know how much you’ll pay a year to use their service, E*TRADE makes it easy by providing a calculator so you can enter the amount you want to invest, and you’ll see how much the annual fee is expected to be. This platform also offers a wealth of information for beginners. Plus, with a minimum investment of $25,000 you’ll be able to work with a Financial Consultant to make sure your portfolio is aligning with your goals.

Read More: The Best Robo Advisors – Find out which one matches your investment needs.

What If You Don’t Feel Comfortable Investing Alone?

All of the points made above are pretty much assuming you’re comfortable investing on your own–whether buying individual stocks, ETFs, mutual funds, index funds, or just working with a robo advisor. But it doesn’t have to be that way. In fact, there might even be a much better way.

If you aren’t comfortable investing on your own, you may want to consider working with a Certified Financial Planner (CFP). CFPs tend to operate on a fee-based structure for their advice and help –versus someone who just gets paid to invest in different stocks for you. This means that they will tend to have your best interests in mind.

But a problem I’ve found is locating a good CFP who knows your financial situation well enough to make educated recommendations on what you need and don’t need to achieve your financial goals.

Facet_WealthThat’s why I appreciate Facet Wealth. Facet Wealth will help you find a CFP that matches your financial profile and will help you reach your financial goal faster. You get to meet with them virtually through a video conference, and they’ll be your dedicated CFP–instead of a random person in a call center or a one-size-fits-all approach.

Everyone has a different money situation. Everyone varies in their comfortability with investing, too. That’s why a robo advisor or online brokerage may not work for everybody. That’s why if you’re even the least bit uncomfortable, I would look into Facet Wealth.

Other Ways to Invest $10,000

Those are my ten choices. Here are the responses from the Dough Roller community:

Larry: That’s a no brainer. Buy stock in a quality dividend paying company. (A great way to invest, but he didn’t say which quality dividend paying stock–Larry, please email me and let us know!)

Karen: I would pay off any outstanding debt that I had and put the rest in savings.


  • $2,500 in the checking account for cash flow
  • $2,000 split between two children’s UTMA accounts
  • $2,500 to Vanguard Global Minimum Volatility
  • $2,000 to Fidelity investment account for future investments NOS
  • $1,000 to I bonds

Paolo: If I were given $10,000, I would…

  • Use $5,500 of it to contribute to my Roth IRA contribution for 2015,
  • $3,350 of it to max out my HSA contribution for 2015,
  • $1,000 to pay down my mortgage principal,
  • And the remaining $150 will go towards a trip down to Legoland San Diego for my wife and three kids!

William: Invest.

Jeff: If I came into $10k right now I’d probably put it into one of my Vanguard Index funds. I’m debt free, have my needs covered, and anything else would be just wasting the money.

Christina: I would drop it right into my daughter’s 529 plan!

Sachin Shenoy (Right way to pronounce my first name is Such-in): With $10K there are couple of investment options…

1. The conservative investment option – Put it all in Vanguard 500 Index Fund Admiral. At 0.05% expense ratio its a no-brainer (May be able to convert non-Admiral shares to Admiral if you were already invested in investor shares)
2. Crazy investment option–Invest in USO ETF… Crude should be hitting the bottom sometime soon.

Other options include… Pay off the car loan and redirect the monthly payments to option 😉

Patrick: $7,500 minus expenses at the craps tables in Vegas. $2,500 in baby furniture since the wife is having twins….unplanned btw.

One other note–as a former USAF Capt, Navy Federal (Credit Union) doesn’t hold a candle to USAA. Besides the great insurance, banking and customer service, USAA gives out distributions to their members. Mine was 50 bucks. I don’t have insurance through them presently because I’m living outside the USA.

Donna: I would apply it on my son’s private school loan after I take out taxes to lower his debt.

Stephanie: If I received $10,000 I would give $1,000 to charity, put $2,000 into my dream vacation fund (actually into my savings until I actually am ready to take that dream vacation). I’d use the rest to max out my ROTH 403b (instead of my traditional 403b).

Prime: Spend it on an engagement ring.

Larry: I would buy $10,000 in mutual fund shares in energy/oil companies, such as VGENX.

Jeff: I try to live by the 10-20-70 rule. So I would give $1000, save $2,000, and spend the rest 😉 But in reality, I would probably save most of the $8,000 too. I bet a lot of your answers for this will be based on personality type (nerds versus free spirits, etc).

Guadalupe: Use $7,000 to consolidate debt and the other $3,000 to invest in my network marketing business. Thank You!

Earl: Pick 5 charities that I think need the help and give $2,000 to each.

Joe: Invest part in blue chip oil company stocks. The rest in short term high quality bonds.

Kyle: Buy back the years of service in my pension. The first six months of employment, nothing went onto my pension. I can now buy those months back to add to my service.

Max: I would pay off my credit cards.

Erin: If I were given $10,000, I would put it away for my emergency fund–still working on reaching that goal. I’d put it in a credit union checking account that accumulates exceptional interest.

ACE: Put it towards the mortgage.

Ok- easy :

  • $3k savings–I need a lot more!!!
  • $3k on my c/c that would put a small dent in my debt and lower payments
  • $3k to my mom (unfortunately insulin is not covered with her Medicare, that would hold her for a while)
  • $250–Go Red For Women (American Heart Association)
  • $250–Step Out for Diabetes (I walk in honor of my Mom)
  • $500–Fun Money/Day spa

That’s my personal breakdown. I’ve been hoping for that kinda windfall! Would be nice.

No name given: Spend half on a vacation and half to retirement fund. That what I do with my bonuses.

Mary: If we were given $10,000, I would use $7,000 to pay off my husband’s car loan, and put the remaining $3,000 into our emergency fund.

Logan: I would max out my ROTH ($5,500), put $2,000 in my son’s 529 plan (in GA you can deduct up to $2k off your taxes), and put the rest in cash reserves. Well, I would also buy a nice bottle of bourbon.

No name given: If I was given $10,000, I would use half of it to pay down debt, and the other 1/2 to start saving for a down payment for a house.


  • Express gratitude to whoever provided the $10k,
  • Pay off or pay down debts,
  • Put 20% into an emergency account,
  • Reserve a small amount to make a special meal with my family,
  • Re-organize/plan/implement a new long and short-term budget.

(Rhea was the only one who mentioned thanking the provider of the $10,000! I didn’t say what the source of the money was, but it certainly could have been a gift. Good catch, Rhea!)

Jessica: Pay down my debt.

Bill: Reduce credit card debt.

AJ: I would use around 5k to invest and build positions and the other 5k to pay down debt.

Ben: If I were given $10,000 in a lump sum, I’d throw it at my fiancée’s student loans. They are at 6.625% through SOFI. Historically would stocks outperform that by half a percent or so? Yes, but gaining freedom by lowering debt is worth half a percent to me. That being said, I don’t know what the breaking point would be. Off the top of my head maybe two percent, but it’s definitely something I’m going to put some serious thought into.

(The best financial decisions aren’t always the ones that make the most mathematical sense, and Ben has provided an example of where this can happen.)

No name given: Ah. $10,000? Tithe, savings, and maybe something towards a long hoped for a visit to friends and family in Italy.

Sandra: What I would do with 10,000? If I wasn’t in financial restraints I would start an IRA (and) emergency fund.

Claus: I would take $6,500 and put it into the Roth for next year, the rest will go into the savings, adding to the reserve fund.

Kelly: Invest it – wherever my allocation needs it!

Jacki: What would I do with 10k? Pay down some credit card debt. Or maybe redo my driveway.

Erik: If I had $10,000, straight to a 25K balance HELOC (Home Equity Line of Credit) at 4.25%.

So there are your responses to my $10,000 question. Thanks to everybody who responded.

What would you do with $10,000?  Leave a comment below.

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Author Bio

Total Articles: 1081
Rob founded the Dough Roller in 2007. A litigation attorney in the securities industry, he lives in Northern Virginia with his wife, their two teenagers, and the family mascot, a shih tzu named Sophie.

Article comments

John says:

If I had $10,000, I would first pay off any debt outstanding then invest the rest.

Hi Rob: thanks for your excellent site; always food for thought here.

Check out Barclay’s new “Dream” savings account: 1.00% APY, no minimums to open, and bonus interest paid if 6 months consecutive deposits with no withdrawals made. Looks like a good deal!

Doug Ro says:

How can some of you people put part of the $10, 000 you were given into a Roth IRA.? You can only put earned income in a Roth..not gift money.

Rob Berger says:

Doug, you are absolutely right that you have to have earned income to contribute to an IRA. But assuming that you do have earned income, it doesn’t matter whether the money you contribute literally came from your job, a gift, or money from your savings account.

Penny says:

I would give at least $1k to charity, put away $1,000-1,500 in a mutual fund for my daughter, and put the rest into real estate (either part of a down payment for a rental, or towards improving my home in a way that will improve my quality of life somehow). But charity and my kiddo are absolute certainties!

Raph says:

You get 10K and give 1K to charity? You crazy.

Kate says:

2k to pay my mom back from a small loan
3k pay off credit cards
2k towards our upcoming trip to Ireland
800 free money
200 adopt two families for Christmas
2000 buy shingles for the house

Vincent says:

Invest 1000 on a regulated Peer to Peer lending organisation. Investing in 100 different enterprisesw, that offer to pay back with an added compounding interest, for a period of 6 months. 1000 will clear all my debts. 8000 invest on Bonds.

Elizabeth says:

1. Pay of debts, not including mortgage
2. Invest in yourself ! (surprised no one mentioned this) . Take some classes to learn a new skill that you can use to get a raise or a new job, start a new business/whatever. Take a class (or classes) to learn to be able to cook from scratch (vice prepared/takeout restaurant) and do home repairs to save money (the ROI may be very high).
3. If you own your home, use some of the funds to do repairs/improvements that will increase its value.
4. Donate a portion. Yes, you won’t have a ROI but I found that when I donate my time and/or money, I am not only more relaxed and giving but better able to focus PLUS less inclined to spend money elsewhere – and my net worth goes up by more than the donation amount.
5. Hire someone to do the chores that keep you from earning more money. If cleaning the house costs $300/month but you use the time saved to generate $400 extra income (or many more hours with family), you have a great return!
5. Invest in your health. Get a personal trainer, food/vitamins or whatever to get in better shape. this may not only lower medical costs and extend your life but also since you will feel better, you may be able to work better and get more money too.

JC Webber III says:

I’ve been investing in Lending Club since Feb 2013 (and in Prosper since Nov 2006). I’ve been making 8.06% in Lending Club and 8.6% in Prosper. Here’s my Lending Club progress (I quit contributing to both of them a couple of years ago around the time I hit $10K in each, but still re-invest payments).

Mary says:

Ok… I’m actually coming across this and need advice. My mother wants to give $10k to each of her grand kids. The no brainer, for my kids, 5 & 7, I’m going to get a 529. Now for my niece who is 14. Would this be a good option, or should I get her a high yield CD? I will be in charge of the accounts.

Mantis Toboggan says:

I’m reading a lot of “I would invest X amount” but without specifics. I’m certain we all came here because we searched how to invest 10k. I would love to read specifics. I would strongly suggest veering away from lending club. Stock has plummeted from $25/share in 2015, less than three years later 2.70 a share. Also I just read the FTC filed suit for hidden fees. Doesn’t sound good to me but what do I know. Gooduck out there ☘

Bob from Utah says:

Invest in AMZN… relatively speaking it’s cheap, and it’s business model gives it a competitive advantage

Dan says:

Would add it to my savings and buy two semi trucks and then hire drivers to work for me, then continue to build up to a full trucking company on down the line.

Ben Williamson says:

If I had 10k cash, I would visit the nearest casino, play roulette and place it all on the color red.

Ron Hicks says:

I am 76 retired with a great monthly income I have came into $10,000 in May have no debt own my home just looking for a good investment

Vince says:

Sir, I had to sign up to give you my thought. Please invest in your health, this is the most important and the only thing you need to focus on. Just go to your doctor usually, eat well, relax, travel some where. Make sure get your health and your mind stressless. At 76, sir you don’t need to invest anything else except your health.

Mun Dane says:

I have no debt and need no more income so $10,000 is enough to fund the camping/fishing excursions for 3+ years. We are frugal by nature so we would even have enough left for new tires on the truck.

Dillon says:

I’d throw it all at KBC cryptocurrency, and continue to day trade with it! Should be able to double that amount in 1 month.