Question: How to best use 6500 dollars I've saved up?

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Answer #1:

GEt OUTTA DEBT

but still have a little bit of savings

Answer #2:

Pay off at least 5000 of the debt. Debt is the worst thing possible and if you have that much money pay off most of your debt before you do anything especially before buying a car. Remember debt will mess up your credit history so you won't be able to buy a car without a co signer.

Answer #3:

I would take 2000 and put it in either an IRA or a CD depending on which has a better interest rate at the moment. Take another 2000 to put towards debt that you have. And keep the other 2000 and continue to save for a car. Keep in mind, you will have to add to your expenses gas, maintenance for the car (when needed) and insurance. If it's your first car try to find a good used one on craigslist! Til then, just continue to save.

Good luck!

Answer #4:

First thing, get your debt down to a level that you can get the rest paid within 3-4 months out of your normal cash flow. If that means the entire $6500, then do it.

If you buy a car, you will have insurance which will add about $100 per month to your expenses. Plus gas, oil and maintenance which will be another $100 per month. $6,500 does not buy much in a used car and you will have repair issues within a year or two.

Don't invest now in a business you won't open for 2 years. That is letting your money sit idle too long.

Don't spend this on a vacation or worry about retirement if you have debts. Get your debts taken care of first.

Answer #5:

How old you are is very important.So is how much income is coming in.
While a roth ira is a great idea paying off debt would come first. debt has 0 stdv and -10% while returns on anything can not counter that.
The business idea is great if your really going to do it but remember that debt is serviced at about 10% annually (your rate could differ) so you would really need to get something together to make that work over paying off debt.
If you have no problem staying with the family moving out is something that I highly recommend against until you can really afford it.

My advice summarized:
You should keep 3 months worth of expenses in a bank account (savings if you can transfer easily). So put 1.5 k in savings account and use the rest to pay down your debt.





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