Okay, so you're fortunate to have around $50,000 to put to work. You may have a sizable emergency fund because you consistently save a portion of your income. Maybe you received a large sum of money that you still needed to bargain for, such as an unexpected inheritance, insurance payout, or settlement.

Now you need to figure out where to put that money. It's one thing to have cash on hand and another to know what to do with it. You can do many things with $50,000, but it's easy to become paralyzed by the possibility of making a mistake. Here are some ideas on how to spend $50,000 and things to think about.

Investment Accounts

Your $50,000 would be safe in a bank's savings or money market account. Your money is safeguarded in case of a bank failure, thanks to the Federal Deposit Insurance Corporation. You'll make some interest, but it will be a little.

One example is the Annual Percentage Yield on savings accounts at Bank of America, Member FDIC. Ally Bank is a web-based financial institution that offers annual percentage yields. Neither of these options provides interest rates high enough to keep up with inflation, but your money will always be there if you need it.

Deposit Certificates

A certificate of deposit (CD) might be a better option than a savings account if you're looking to invest your money for a certain length of time and receive a fixed interest rate.

Your money is safe when you buy a CD from a bank because of the Federal Deposit Insurance Corporation. How long you keep your money in the account is known as the "term," and it's up to you to decide.

You can withdraw your principal and any accrued interest at the end of the CD's term. The interest you earn on a CD is tied to the amount you deposit and the length of time you want to keep it there.

Mutual Funds

When investing in the stock market, mutual funds allow you to diversify your portfolio and reduce the risk of losing everything. Individual stock purchases come with the chance that the value of the underlying business might fall considerably.

For instance, they may roll out a product that fails to sell, or its CEO could get into a public-relations crisis. In contrast, when you invest in a mutual fund, you are purchasing a "basket" of stocks rather than just one; you will own a small portion of several different firms' shares, therefore reducing your exposure to the performance of any one firm.

The ETF (Exchange-Traded Fund)

Exchange-traded funds (ETFs) are investments that function similarly to mutual funds but are passively managed instead of actively managed. They're made to look like an index investment's return. The index may be all-encompassing, like the S&P 500 or the Russell 2000, or narrowly focused, like an exchange-traded fund (ETF) that follows the semiconductor or retail industries.

Seek Guidance

If you're starting in finance, it's probably a good idea to consult an expert before making any major decisions with your money. Even while a traditional financial adviser would turn you down if you have $50,000 to invest, plenty of internet brokers will be happy to help you get started. Customer service is vital at both Fidelity Investments and Vanguard.

Do It By Yourself

Low- or no-cost trading services like Robinhood and Webull allow you to trade without spending a dime if you want to try your hand at the stock selection. While these sites can be helpful to research tools and may even offer Guidance, you are ultimately responsible for making any purchases or sales. Before risking the whole $50k on your trading endeavors, you should test the waters with a smaller sum.

Real Estate

You could put fifty thousand dollars down on a home if you are now a renter. There is no denying the benefits and burdens of house ownership. Being a property owner gives you a sense of accomplishment and independence and offers the financial advantage of watching your investment grow.

If you currently own a home, you may spend some or all of your $50,000 on improvements to boost its worth. Kitchen and bathroom indeed remodel often yield the highest return on investment, but you can still build that man cave or woman shed of your dreams.

Put Money Into Yourself

Earning a graduate degree or professional certification can increase your earning potential throughout your career. Pursuing more education might increase your earnings and the enjoyment you get from your work if you're so inclined.