If you have $5,000 to spend but don’t know what to get, this article will clear up all your questions.
Start A Business
With an investment of $5,000 or less, you may launch a variety of low-overhead enterprises, many of which are work-from-home opportunities like becoming a virtual assistant (expenses include computer, phone, Internet, and possibly training and marketing). For $5,000 or less, you might own a tiny franchise, like a hot dog cart.
Even though interest rates are now low, depositing your money will still earn you some interest.
Since Ally Bank now pays 4.15% on money market accounts (some banks offer even more), you would have $6,151 after five years.
In other words, if you save for five years, you’ll have accumulated enough interest to purchase a scooter or hire someone to clean your home once.
Eat a Burger
At Hubert Keller’s Fleur restaurant in Las Vegas, the Fleur burger 5000 is a specialty burger created with Wagyu beef, foie gras, shredded black truffles, and truffle oil. Along with fries, it includes a beautiful bottle of wine.
Grill Your Burgers at Outdoor Kitchen
While even the cheapest hibachis can be used to flip burgers, setting up a backyard kitchen with a nice grill, an island with a built-in refrigerator, and a dining set begins at roughly $5,000.
Get Yourself a Cat
The Bengal cat, a half-house cat, and a half-leopard are stunning animals that cost over $5,000 to own.
If being neglected by one cat isn’t enough for you, adopting will give you more cats for your money.
You could purchase 50 cats for $5,000, each costing an average of $100. However, you may need to save cash for food, litter, and a nice vacuum cleaner.
Pay Off Credit Card Debt
The typical American family owes almost $6,000 in credit card debt.
If this applies to you, paying the minimum amount due each month at the standard interest rate of 15% would take several years, costing you between $2,000 and $3,000 in interest.
If you pay off $5,000 of that loan right now, you might pay off the remaining balance in a year and save almost $2,000 in interest.
Recommended: 8 Easy Ways To Make $5,000 Fast
Give it to Old Guy: Future You
If you don’t already automatically contribute to an IRA from your salary, a lump sum commitment of $5,000 will cover practically the whole year’s maximum deposit.
You may be surprised at how much your $5,000 contribution might grow by the time you retire since conventional IRAs grow tax-free.
If you put $5,000 down at age 20, you may have more than $50,000 by age 65, assuming a 7% annual return. Not bad at all!
Donate to Charity
You may write off your donation from your taxable income, which will make you feel wonderful.
Make sure your receiver is a recognized nonprofit organization; you may check this on the IRS website. Also, remember that any gifts above $250 need a letter of confirmation from the charity.
Buy 82-inch LCD TV
The last time I looked, the price of an 82-inch Samsung flat-screen on Amazon was reduced from $5299 to $3497.
You’d have a TV that occupies half of your wall at that point, and you wouldn’t want to leave home again, at least not until the end of football season.
If you get it on sale, you will have an additional $1,000 to spend on cables, mounting hardware, and snacks.
Trip to Vegas
It wouldn’t take long to use up that $5000 if you added up the cost of a plane ticket, a three-night hotel stay, plus some amazing concert and show tickets.
Instead of choosing cheap motels because you’re concerned about your budget, you could stay on the strip and dine at upscale restaurants if you had access to someone else’s fun money.
Hi, I’m Ashley a freelance writer who’s passionate about personal finance. Ever since I was young, I’ve been fascinated by the power of money and how it can shape our lives. I’ve spent years learning everything I can about budgeting, saving, investing and retirement planning. So if you are looking for tips, advice, or just a little bit of inspiration to help you on your financial journey, you have come to the right place. I am always here to help, and I am excited to share my passion for personal finance with you.