When the time comes that your family has managed to get some money into your savings account, there are some decisions that you can make. Some of these are fun, whereas other might be a little bit more practical or serious in nature. But one way or another, money doesn’t do much good sitting there when major events pop up – so the question is, what to do with it?
Five directions you can take your saved cash flow including spending it on getting a new car, paying for college, going on a family vacation, starting a business, or maybe trying your luck and putting it into the stock market and betting on the future.
Getting a New Car
Typically, getting a new vehicle means getting a car loan, but if you managed to save some cash, this becomes less of an issue. There are philosophies of life that suggest that you only pay what you have already saved for your next ride, because that takes a lot of anxiety of out of daily living, so it’s definitely something to consider. It might take a lot of time to save up to pay cash for a new SUV, but less so for an old station wagon with a few dents and scratches.
Paying for College
Depending on the ages of your children, your savings could potentially go toward the cost of college. There are gigantic variations with respect to how much college costs per year, and in-state vs. out-of-state tuition is going to be the major factor there. In many cases, parents will start putting money into savings for kids’ college as soon as the little people are born!
Going On Vacation
Another great way to spend your savings is by finally taking that family vacation that everyone has always wanted. A few good examples of family vacations would be heading to Disney World or Disneyland, or going on a camping tour of the U.S., or visiting any sort of family-oriented theme park.
Starting a Business
If you want the main breadwinner in your family to be their own boss, ultimately there’s going to have to be a business started somewhere along the way. And if you’ve got some money in that savings account, using it for seed financing might be just the ticket to having a more independent lifestyle in the near future.
Investing in the Stock Market
And one final way to use your savings is to put it into the stock market as part of an investment portfolio. If you use the right agency at the right time, and plan on long-term earnings, you can make money simply by having money as long as you have a broad enough investment structure.