What should I do to get rich? ?

Ok. So I just received a settlement of 229k from a car accident a year ago. I’m trying to figure out the best route I should take with this money so I don’t mess things up. I am 28, single mom of two. I make about 41k per year and have about 25k worth of debt. 40k student loans. I am renting right now. Some of my family are telling me to buy a new car and a house cash with it. Others are saying that wouldn’t be smart. Any suggestions? P.s... I would like to make MORE money off of this money if possible...

23 Answers

  • 2 months ago

    You should become a sugar momma for a single father of 1. We are house trained, and are good at helping others spend their money! Lol

  • Anonymous
    2 months ago

    Just keep jacking off, m8. You'll eventually splooge all over a $1 billion check.

  • 2 months ago

    i know you should spend it all at one time on something like a house then all the money you get from your job you can keep it all ashley then invest your money into things that you like at the mall or on a new 2020 car or at the bar 

  • 2 months ago

    My suggestion is to do nothing quickly or rashly.  Even on paying off your debt.  Get advice from several sources, like successful relatives that have managed to save over the years.

    I would suggest checking out the book, "The Richest Man in Babylon" by George Clauson from the library.  Or buying it from eBay or Amazon.  It's sort of like a fairy tale, but the advice is sound, and those principles are basically what led to our quite comfortable financial situation, today.  There is a story in there about a young blacksmith in ancient Babylon who receives a gift of 50 gold pieces from the king.  That's equal to a lifetime of savings for him, and relatives and friends are pressing all around him to get a piece.  He's also concerned about how to invest it.  The money lender has wise advice for him.

    If you are able to work, that is still your source of future wealth.  It was really regular saving and good financial discipline that grew our investments, not a particular windfall.

    Other tips from the book, but I'll put them here in case you don't read it:

    1) Chasing fast money is the surest way to lose all your money fast.

    2) Sucessful people are happy to give advice, as opposed to money.  So many more people ask for money than advice.

    3) Be wary of anyone giving financial advice that has something to sell you.  This includes many financial advisors.  A professional account manager, for example, might make commissions of trades, so the first thing they might do is sell all your stocks and buy others.  We've kept most of our money in low-cost mutual funds like the Vanguard Index 500, and done better without all the trading fuss.

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  • 2 months ago

    Ashley, The first thing I would recommend is that you pay off all debt including the student loans as that would greatly reduce your living expenses. If your current car is an old clunker, I'd replace it with not a new car, but rather a newer car that has already experienced its 1st-year depreciation. This would leave you with around $140K cash remaining or so and you'd be quite comfortable to go house shopping with a fairly good down payment. I would not recommend paying cash as that would leave you with no reserve emergency funds and also the interest rates today are extremely low. After purchasing the house, I would suggest you safely save from 3-6 months in a safe account where there is no or very little risk. Then, with whatever is left, I would open an investment account with a brokerage firm, I use Ameritrade and have been happy with their online services and would recommend them although there are several others to choose from. If you remember, years ago many books were sold for Dummies. One of them is "Investing For Dummies." Most of the basics of investing is explained within. I wish you the best of luck and, although this won't make you wealthy, you'll get off to a darned good start.        Ron

  • 2 months ago

    Definitely pay off the debt - don't know about you, but I'm not interested in paying interest! 

  • 2 months ago

    Pay the taxes on it first, if you haven't already. THEN pay off your debt. Then with what's left over, buy a good USED late model car and a house. Don't go overboard with spending on either one. Pay cash for both if you can. What a bonus that will be for you! Owning free and clear--a house, a car and no debt! You'll be asset-rich and debt free--and everything you make on your job after that will be YOURS. With anything that's left over, put it in a Certificate of Deposit, or retirement fund like an IRA so your taxes won't be a burden. 

    If there is more than $10K left after all this, consult a financial advisor to check out any investments that would be beneficial to you and your kids. Endowments--life insurance they can use for college--or some other long-term plan that has higher gain and lower risk. Don't look at this money as a way to get rich--look at it as a way to become ABLE to use what you are making last longer and do more. $229K might seem like a lot of money, but it isn't these days--but it's a darn good start. 

  • garry
    Lv 5
    2 months ago

    rob a  bank comes to mind , any idiot can rob a bank . or you can sell the kids to save money , $40 k a year for education on a $41 k income , heard of the word budgeting and over spending . only suggestion is pay of your student and personel loans and allow money for future school costs . then see if you have any left over .old saying no bills then no worries .

  • Eva
    Lv 7
    2 months ago

    You don't need a new car. A good used one will do. Tying up all your cash in a house is foolish, especially with mortgage rates as low as they are now.  You may want to get rid of your student loans and other debt though.  Make an appointment with a financial advisor.  You are right to want to have this money make additional income for you.  Family are usually poor advisors.

  • 2 months ago

    I made 20k off tesla stock in the last 3 weeks.

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