If you had $50,000 for a New Start, How Would You Spend It?

[Redstone5]

I'm getting divorced and selling our family home. I will probably have about $50,000 left to my name after the sale, but will finally be debt-free. I'm 39 years old, I make about $40,000/year at my current job and I have three kids. I think I know what I'm going to do with the money to get us started, but I was wondering what other people would do in the same situation.

If you were starting over again, were debt free, and had $50,000 to get started, what would you spend it on?

[Zamboni]

Been there, so I know I would:

Pay off my remaining divorce attorney bills ($4500)
Max out my Roth IRA ($5500)
Use Craigslist/thrift store to replace any essential furniture and household items lost in the divorce (such as bunk beds for the kids, vacuum cleaner, toaster, etc.) (<$2000, I actually found a vacuum cleaner by my dumpster and fixed it as a weekend project)
Open Vanguard 529 plans for each of the children ($3000 for each child = $9000) and set up a modest monthly contribution to transfer over right after each pay day.
Save the rest for emergencies and to buy a small house or townhouse when my lease is up.

I'm glad you are getting some money eventually to help you get back to a normal life.

[Redstone5]

Been there, so I know I would:

Pay off my remaining divorce attorney bills ($4500)
Max out my Roth IRA ($5500)
Use Craigslist/thrift store to replace any essential furniture and household items lost in the divorce (such as bunk beds for the kids, vacuum cleaner, toaster, etc.) (<$2000, I actually found a vacuum cleaner by my dumpster and fixed it as a weekend project)
Open Vanguard 529 plans for each of the children ($3000 for each child = $9000) and set up a modest monthly contribution to transfer over right after each pay day.
Save the rest for emergencies and to buy a small house or townhouse when my lease is up.

I'm glad you are getting some money eventually to help you get back to a normal life.

It sounds like you made some pretty good choices with the money. I'm trying hard to avoid the impulse to take the kids to Europe with the windfall (joke)

Do you know if a Vanguard 529 similar to the registered education savings plans we have in Canada?

[Zamboni]

It sounds like you made some pretty good choices with the money. I'm trying hard to avoid the impulse to take the kids to Europe with the windfall (joke)

Do you know if a Vanguard 529 similar to the registered education savings plans we have in Canada?

A 529 plan is an education savings account, so they could be similar, but I don't really know what is available in Canada.

You do need to "lock the extra money away" so that it doesn't gradually get frittered away for wants and little "emergencies" that should be solved cheaply and creatively rather than by dipping into the till. For me this was short term savings since I wanted to buy a home, so I wanted most of this money to stay in low risk investments. My strategy was to join a local credit union and put the money into various term $3K-$5K CD's which earned ~1.5-2% interest. The credit union had the advantage of low penalties for early CD withdrawal . . . only the last 3 months of interest. For profit banks have stiffer early withdrawal penalties. Now that I don't have a short term goal for my e-fund, I keep only ~$5K cash in savings and the rest is in a Vanguard investment account in index funds.

As far as going to Europe, which I realize was a joke, my ex- took the kids there. They saw some cool stuff, like the Vatican and Pompei. Clearly they had a good time and good memories. But kids don't always get the full enrichment from these things that you would expect from an adult. One child's description of visiting Pompei "It was really hot and we had to walk and walk and walk. NaNa was walking super slow because of her knees, and I thought it would never end. So hot. I got really thirsty, and finally dad bought us water. Then this girl threw up on my shoe! Ugh, it was so gross!" The other child seems to mostly remember that the ice cream there was really good (perhaps it tasted especially good because the weather was very hot?)

[Redstone5]

It sounds like you made some pretty good choices with the money. I'm trying hard to avoid the impulse to take the kids to Europe with the windfall (joke)

Do you know if a Vanguard 529 similar to the registered education savings plans we have in Canada?

A 529 plan is an education savings account, so they could be similar, but I don't really know what is available in Canada.

You do need to "lock the extra money away" so that it doesn't gradually get frittered away for wants and little "emergencies" that should be solved cheaply and creatively rather than by dipping into the till. For me this was short term savings since I wanted to buy a home, so I wanted most of this money to stay in low risk investments. My strategy was to join a local credit union and put the money into various term $3K-$5K CD's which earned ~1.5-2% interest. The credit union had the advantage of low penalties for early CD withdrawal . . . only the last 3 months of interest. For profit banks have stiffer early withdrawal penalties. Now that I don't have a short term goal for my e-fund, I keep only ~$5K cash in savings and the rest is in a Vanguard investment account in index funds.

As far as going to Europe, which I realize was a joke, my ex- took the kids there. They saw some cool stuff, like the Vatican and Pompei. Clearly they had a good time and good memories. But kids don't always get the full enrichment from these things that you would expect from an adult. One child's description of visiting Pompei "It was really hot and we had to walk and walk and walk. NaNa was walking super slow because of her knees, and I thought it would never end. So hot. I got really thirsty, and finally dad bought us water. Then this girl threw up on my shoe! Ugh, it was so gross!" The other child seems to mostly remember that the ice cream there was really good (perhaps it tasted especially good because the weather was very hot?)

Ha, that's hysterical! It sounds like her experience of Pompeii is like my children's day at our local fair so maybe they're not missing much :)

[jorjor]

$50,000 and a new start? I'd get a vanity license plate to let the whole world know.

[Redstone5]

Oh my gosh! That is the funniest thing! I'm so glad I'm too cheap for vanity license plates. That seems like the kind of mistake I would make.

[Lanthiriel]

I would hoard it, wait until my husband got a job and either:

• Use it to move out of state and put a decent down payment on a house.
• If we stay here, I'd fully fund my $20k emergency fund, max out a couple of Roth IRAs, and pay down my current house to get rid of PMI.

[Redstone5]

I would hoard it, wait until my husband got a job and either:

• Use it to move out of state and put a decent down payment on a house.
• If we stay here, I'd fully fund my $20k emergency fund, max out a couple of Roth IRAs, and pay down my current house to get rid of PMI.

Is it expensive to live in Alaska? I know that my $50,000 would go a lot further in other provinces, but then I'd spend more in child care, moving away from family in BC.

[Redstone5]

Would anyone go back to school for a better paying career? That's my current plan for the money.

[AccidentalMiser]

Would anyone go back to school for a better paying career? That's my current plan for the money.

That sounds like an excellent idea!

[Investmenthunting]

How old are your children? Do you already have college funds setup? If your kids are young, I'd do what the others are suggesting. Take a portion of the money and setup college funds. The first thing I'd do is set aside at least 90 days expenses in an emergency account, then fund college funds if applicable. After that, I'd invest in either a few Vanguard funds or individual dividend paying stocks. Best of luck to you on your new journey.

[Redstone5]

Would anyone go back to school for a better paying career? That's my current plan for the money.

That sounds like an excellent idea!

Thank-you. I've been working towards it for a few years now, so I'm pretty sure that it's the right plan for me, but of course there are so many choices. I could:

-move to East Africa (we have family there, so it's not as crazy as it sounds)
-make a down payment on a small hobby farm and get into farming
-buy a piece of property far up North and build a yurt
-move to Tofino (the west, west coast)
-save it until the housing market cools off and put a down payment on a condo
-put it into my children's education funds
-move to Mexico
-travel for six months with my kids
-buy property in a much cheaper province
-invest in a business
-put a down payment on a commercial property
-put one child in private school for two years

etc., etc.

[Redstone5]

How old are your children? Do you already have college funds setup? If your kids are young, I'd do what the others are suggesting. Take a portion of the money and setup college funds. The first thing I'd do is set aside at least 90 days expenses in an emergency account, then fund college funds if applicable. After that, I'd invest in either a few Vanguard funds or individual dividend paying stocks. Best of luck to you on your new journey.

Thanks so much.
My children are 14, 8 and 4. We already have $12,000 in educational funds set up, but we only add $90 each month so they are growing very slowly. University and college are much cheaper here than in the US, so I'm not so worried about being able to cover tuition for the kids as it's about $6000/ year, and they can live at home for about the same as they cost me now.  And my ex would pay half the cost for tuition. Since they are far apart in age, it's probable that we won't have more than one in school at a time. Of course, if I do go back to school, I might be there at the same time as my oldest. If they want to go somewhere more expensive they're going to have to work their way there themselves.

I don't have any emergency money, so that's the first thing I will set aside. Would Canadians invest in Vanguard? I'm not sure what that is.

[La Bibliotecaria Feroz]

I'm going to let the dust settle before I decide what to do with my nest egg. I've been doing what Mr. FP wants for soooo long, I'm not totally sure what I want. I THINK I want a little tiny house of my own with a garden and chickens, but I'm going to get my feet under me* before I do anything rash.

*And get a job, since $23K per year does not equal mortgage-ready here in Denver.

[KMMK]

I'd sit on most of it for quite a while. Get settled again with being single, no big permanent decisions at the moment. Cash is always the most useful.
With $50,000 and kids, I'd put about half in a couch potato portfolio - http://canadiancouchpotato.com/ - just read the top tabs to start. (Tangerine is probably the easiest option at the moment, though I like TD).  The other half in a high interest savings account. (One option - https://www.outlookfinancial.com/) Use all your TFSA room - probably $46,500 if you haven't contributed at all yet.

[Migrator Soul]

Hm.. I think I would use that money to jumpstart my real estate aspirations. An extra 50K would push my cash reserves to 75K, which should be more than enough to put a down payment on and renovate a fourplex.

[DocMcStuffins]

School = more debt likely.  If you have any business mind, any thoughts on using it to start your own business ??? 

[forummm]

Would anyone go back to school for a better paying career? That's my current plan for the money.

At 39? Not a lot of time to capitalize on whatever additional income you might get. And you could end up even worse off if you have to cut back on working while in school. And pay all that tuition (unless you can get that for free). Maybe you have free education in Canada?

If it were me (in the US), I would stick the whole $50k in savings and keep building up the savings until I could retire.

[Zamboni]

On the school front, it can be a good idea or a bad idea. You need to REALLY do your research and probably work in the legal field in some capacity to know what the degree will do for you before you start spending money on classes.

If you like the idea of legal work but don't work in a law office now, can you start looking for that type of work? Can you work as an administrator, office manager, or paralegal or something? My own divorce lawyer offered to hire me, which I found amusing (I was not looking for a job and my education is not a good fit, but apparently my organizational and spreadsheet skills are!)

Being a lawyer sounds fun and intellectually stimulating and glamorous, but I'd be willing to be that much of the time it's a grind. Work in a law office for a year or two and see what legal jobs are really like, what they really make for their own salary after paying all of their staff and bills and licensing and overhead, and what they think about the job market . . . and then you can be going into it with your eyes wide open.

[calimom]

Would anyone go back to school for a better paying career? That's my current plan for the money.

That sounds like an excellent idea!

Thank-you. I've been working towards it for a few years now, so I'm pretty sure that it's the right plan for me, but of course there are so many choices. I could:

-move to East Africa (we have family there, so it's not as crazy as it sounds)
-make a down payment on a small hobby farm and get into farming
-buy a piece of property far up North and build a yurt
-move to Tofino (the west, west coast)
-save it until the housing market cools off and put a down payment on a condo
-put it into my children's education funds
-move to Mexico
-travel for six months with my kids
-buy property in a much cheaper province
-invest in a business
-put a down payment on a commercial property
-put one child in private school for two years

etc., etc.

This sounds as though it should be filed in the *you can do anything but you can't do everything* file. :)

And I can relate, when my husband died, I received life insurance, and all those zeros in my bank account were very foreign to me. I would veer from thinking I was well-heeled to then freaking out, fearing impending poverty over raising and educating three children - the youngest was still in diapers - as well as all the other expenses you have when there's no breadwinner in the house. Money was a constant worry and temptation. It was a very weird time.

What I did was park the cash in a money market account…earning bupkas, till I could think clearly. Eventually I did invest in a small business and then got more secure with making financial decisions, like purchasing CDs for an emergency fund, longer term investments in a fund and the usual recommended stuff.

Wishing you well as you sell your house, get the cash, and make good long term goals. All the best!

[Sarnia Saver]

Been there, so I know I would:

Pay off my remaining divorce attorney bills ($4500)
Max out my Roth IRA ($5500)
Use Craigslist/thrift store to replace any essential furniture and household items lost in the divorce (such as bunk beds for the kids, vacuum cleaner, toaster, etc.) (<$2000, I actually found a vacuum cleaner by my dumpster and fixed it as a weekend project)
Open Vanguard 529 plans for each of the children ($3000 for each child = $9000) and set up a modest monthly contribution to transfer over right after each pay day.
Save the rest for emergencies and to buy a small house or townhouse when my lease is up.

I'm glad you are getting some money eventually to help you get back to a normal life.

It sounds like you made some pretty good choices with the money. I'm trying hard to avoid the impulse to take the kids to Europe with the windfall (joke)

Do you know if a Vanguard 529 similar to the registered education savings plans we have in Canada?

In Canada we have the RESP account.  Government gives 20% grant money to the account, it can be in any security that you choose, the money grows and the growth/grant is taxed in the student's hands when withdrawn. 

[arebelspy]

For me personally, rental real estate.

If you don't like that idea, forummm named my number two choice.

[Inaya]

Modest vacation to Iceland (we've been meaning to go, but I just can't bear to spend the money), then use the rest on a down payment of some sort--either a rental or a larger condo in our building that would eventually become a rental when we move out.

[debbie does duncan]

 While I am happy for your $ windfall I do not believe it is enough for a big move or real estate.
 I would take the $$ and drop $ 10G in each boys RESP.
 Let them know what you did and what you expect from them......higher education.
Then you really have the rest to play with.
Are you that unhappy with your present job? Or are you just tired of the stress from your ex?
 Take some time to recover and think about it. Also think of this.....a small vacation by yourself.
 It could be small (weekend) and close Tofino or next summer drop the kids off with the old man and do Europe? East Africa?

[Gimesalot]

My suggestion for the money is to set up a CD ladder.  This way you can get a good return without your money being locked up too long.  Keep renewing the CDs until you have a plan or you can invest in the stock market.

I have another suggestion regarding education for your family... You don't state your job, but might it be something you can do for a university?  At most schools in the U.S., you get free or largely reduced tuition for you and your family, if you are an employee.  You have 4 people that will need or want a college education.  At $6000 per person per year, that is almost $100k.  Even if you are responsible for half, that's still $60k (3*$12k+$24k(you)). 

[Redstone5]

While I am happy for your $ windfall I do not believe it is enough for a big move or real estate.
 I would take the $$ and drop $ 10G in each boys RESP.
 Let them know what you did and what you expect from them......higher education.
Then you really have the rest to play with.
Are you that unhappy with your present job? Or are you just tired of the stress from your ex?
 Take some time to recover and think about it. Also think of this.....a small vacation by yourself.
 It could be small (weekend) and close Tofino or next summer drop the kids off with the old man and do Europe? East Africa?

And I don't really want to live anywhere else or get back into property ownership either so I think that's a no for me too.

It's not that I'm unhappy at my job. It's actually really hard to consider leaving because my co-workers are my friends, and the job is so comfortable. I've been here for 9 years and the work is easy and pleasant. The problem is that it's too easy. I feel like my brain is just drying up here. I could literally do my entire job in an hour and 45 minutes per day. And yet I have to sit here (yes, I do all my posting from my job) for 8 hours, wasting my time looking busy. I've written a 40,000 word novella during my work hours. I've studied for the LSAT, applied and been accepted to two university programs and then decided not to go each time, taken several math and physics classes, and started a blog. I've done all my budgeting and learnt to sew from reading blogs at work! I feel like I've run out of the internet!

There just isn't anything else I can do to make it better. There is no upward mobility in my job as everyone stays in their positions for ever. I don't want to transfer to another department, and options to go elsewhere are very slim in my city and I don't want to move. And I don't make very much money. By the time I pay my taxes, pension, and benefits, I take home $28,800/year. Even living with my parents for free, I would be saving a max. of $1500/month. At that rate I'll be doing this job for the next 10 years and still only have less than $200,000 to show for it. And that is supposed to get three boys through university as well.  And the worse part is that I love to work. I've taken three maternity leaves with my boys, and after 6 months I couldn't wait to get back to work. I love the feeling of working, making my own money, and feeling good at what I do. Ironically, I don't get that from my day job.

I've wanted to go back to school ever since I had to leave teacher's college 15 years ago because my first husband could never hold down a job and we had a child to support. I'm not interested in law school because I want to rake in the cash and be glamorous, I just want to enjoy being able to research legal issues all day, and use my brain, and argue points and talk to people who are interested in the things I am.

I've thought about starting a business, or going into sales, but as an introvert, I'm much more attracted to the idea of going into the study of legal history, or copyright law. Or setting up a small practice in Tofino and helping people go after crooked landlords or bad employers. Three of my grandparents died before they were 60, and my mom and my grandmother got cancer in their 50s, so I've always felt like I need to hurry and live my life and not wait until later. Since I'm 39, even if I didn't finish law school until I was 45, I'd still have a 20 year career ahead of me so it seems like a good investment.

[Redstone5]

My suggestion for the money is to set up a CD ladder.  This way you can get a good return without your money being locked up too long.  Keep renewing the CDs until you have a plan or you can invest in the stock market.

I have another suggestion regarding education for your family... You don't state your job, but might it be something you can do for a university?  At most schools in the U.S., you get free or largely reduced tuition for you and your family, if you are an employee.  You have 4 people that will need or want a college education.  At $6000 per person per year, that is almost $100k.  Even if you are responsible for half, that's still $60k (3*$12k+$24k(you)).

I do work for a university, but unfortunately it's a small one that specializes in masters programs, so my sons would still have to take at least the first 2 years at another school first. Also, ever since the recession my school has really tightened the opportunities for staff. Now, you have to prove that you're taking something that helps your job, and you just get a discount off tuition, not 50% off like before, and I don't think it applies to family anymore either. They won't even pay for me to take a course to learn website management skills, and my job is to manage our new website?! I'm just learning as I do it. I could move to another university, but jobs there are hard to come by, and I work with several people who left there because they hated the organization :(

[Redstone5]

I'm going to let the dust settle before I decide what to do with my nest egg. I've been doing what Mr. FP wants for soooo long, I'm not totally sure what I want. I THINK I want a little tiny house of my own with a garden and chickens, but I'm going to get my feet under me* before I do anything rash.

*And get a job, since $23K per year does not equal mortgage-ready here in Denver.

I love the quote, "If you have a library and a garden, you have all you need". I feel the same way. I just want a little cabin in the woods and a dog, or maybe my own apartment. I've never lived alone. I went from my parent's house, to room-mates, to married, and now back with kids at my parents :)

[Redstone5]

I'd sit on most of it for quite a while. Get settled again with being single, no big permanent decisions at the moment. Cash is always the most useful.
With $50,000 and kids, I'd put about half in a couch potato portfolio - http://canadiancouchpotato.com/ - just read the top tabs to start. (Tangerine is probably the easiest option at the moment, though I like TD).  The other half in a high interest savings account. (One option - https://www.outlookfinancial.com/) Use all your TFSA room - probably $46,500 if you haven't contributed at all yet.

Thank you, I'll check these out. I've never had money to invest before so I don't know much about it.

[Redstone5]

Hm.. I think I would use that money to jumpstart my real estate aspirations. An extra 50K would push my cash reserves to 75K, which should be more than enough to put a down payment on and renovate a fourplex.

Would you manage the building yourself or hire a property manager? I always wonder how much time that would take. I was a landlady for our basement suite rental, and it sucked. However, I now know way more about installing my own toilets, so that's a plus.

[Redstone5]

School = more debt likely.  If you have any business mind, any thoughts on using it to start your own business ???

Yes, I certainly have. My dad owned his own business, and he always says if you believe in your product, it's easy to sell it. But I just can't figure out what business I could do. Here are some of the ideas I've thought of:

-selling sewing products online (Canada really lacks a good mail order sewing supplier on the westcoast)
-kilt-making (this is a popular product for irish dancers and there's a shop in town that teaches it. The problem is the materials are super expensive, and it's time consuming. You need to be fast and find your own clientele)
-blogging (I hate the advertising aspect)
-web design (I hate web design. I can't imagine doing it all day)
-selling shoes (my sister did this, made ok money)
-landscaping (I have back problems)
-car service for the elderly, taking them to appointment, etc. (there is a thriving franchise in my town, but I could do it on my own, but I'm not a confident driver)

[hunniebun]

I don't think you share enough info to make a meaningful suggestion.  While I think it is good and noble as a parent to fund your kids education fund, I also think you have to make sure you put on your own oxygen mask first.  Are your own RRSPs maxed out? Do you have enough retirement savings?  If not, maybe start there...boring and basic, but if you have a lot of contribution room, you could put it all there and get a hefty tax refund, which you could then use for something else?...like the emergency fund/TFSA route?   Having said that, if you need some QT with your kids, I think a nice (affordable...camping? Long week-end?) trip isn't a bad way to help everyone work on their relationships with one another in this new-normal!  Good luck with whatever you do!

[Redstone5]

I don't think you share enough info to make a meaningful suggestion.  While I think it is good and noble as a parent to fund your kids education fund, I also think you have to make sure you put on your own oxygen mask first.  Are your own RRSPs maxed out? Do you have enough retirement savings?  If not, maybe start there...boring and basic, but if you have a lot of contribution room, you could put it all there and get a hefty tax refund, which you could then use for something else?...like the emergency fund/TFSA route?   Having said that, if you need some QT with your kids, I think a nice (affordable...camping? Long week-end?) trip isn't a bad way to help everyone work on their relationships with one another in this new-normal!  Good luck with whatever you do!

You're right, I don't have anything saved at all, except the $12,000 in my kid's education account. I think the best gift to give to your children is making sure they don't have to support you in your old age :) Right now, I don't even have an RRSP or any emergency funds. An emergency fund is going to be the first thing I put money into, once I have some :) And after that, I think that I might take the kids on a small trip, so they can have some mom-time. I've been so busy with studying for the LSAT in June and getting separated in July, they haven't had my full attention for a while.

[Lanthiriel]

I would hoard it, wait until my husband got a job and either:

• Use it to move out of state and put a decent down payment on a house.
• If we stay here, I'd fully fund my $20k emergency fund, max out a couple of Roth IRAs, and pay down my current house to get rid of PMI.

Is it expensive to live in Alaska? I know that my $50,000 would go a lot further in other provinces, but then I'd spend more in child care, moving away from family in BC.

Second most expensive state in the union after Hawaii and for a lot of the same reasons. It takes a lot of money to support a remote community. And right now the economy is tanking due to oil prices. Not a great time to be in Alaska.

[Redstone5]

I would hoard it, wait until my husband got a job and either:

• Use it to move out of state and put a decent down payment on a house.
• If we stay here, I'd fully fund my $20k emergency fund, max out a couple of Roth IRAs, and pay down my current house to get rid of PMI.

Is it expensive to live in Alaska? I know that my $50,000 would go a lot further in other provinces, but then I'd spend more in child care, moving away from family in BC.

Second most expensive state in the union after Hawaii and for a lot of the same reasons. It takes a lot of money to support a remote community. And right now the economy is tanking due to oil prices. Not a great time to be in Alaska.

I've heard that groceries in remote communities can be outrageously expensive. I hope things improve for you soon.

[hunniebun]

I don't think you share enough info to make a meaningful suggestion.  While I think it is good and noble as a parent to fund your kids education fund, I also think you have to make sure you put on your own oxygen mask first.  Are your own RRSPs maxed out? Do you have enough retirement savings?  If not, maybe start there...boring and basic, but if you have a lot of contribution room, you could put it all there and get a hefty tax refund, which you could then use for something else?...like the emergency fund/TFSA route?   Having said that, if you need some QT with your kids, I think a nice (affordable...camping? Long week-end?) trip isn't a bad way to help everyone work on their relationships with one another in this new-normal!  Good luck with whatever you do!

You're right, I don't have anything saved at all, except the $12,000 in my kid's education account. I think the best gift to give to your children is making sure they don't have to support you in your old age :) Right now, I don't even have an RRSP or any emergency funds. An emergency fund is going to be the first thing I put money into, once I have some :) And after that, I think that I might take the kids on a small trip, so they can have some mom-time. I've been so busy with studying for the LSAT in June and getting separated in July, they haven't had my full attention for a while.

I think this sounds like a wonderful plan! But it is nice to daydream about all the alternatives :)  Good luck with everything and make the most of your fresh start!

[Redstone5]

I don't think you share enough info to make a meaningful suggestion.  While I think it is good and noble as a parent to fund your kids education fund, I also think you have to make sure you put on your own oxygen mask first.  Are your own RRSPs maxed out? Do you have enough retirement savings?  If not, maybe start there...boring and basic, but if you have a lot of contribution room, you could put it all there and get a hefty tax refund, which you could then use for something else?...like the emergency fund/TFSA route?   Having said that, if you need some QT with your kids, I think a nice (affordable...camping? Long week-end?) trip isn't a bad way to help everyone work on their relationships with one another in this new-normal!  Good luck with whatever you do!

You're right, I don't have anything saved at all, except the $12,000 in my kid's education account. I think the best gift to give to your children is making sure they don't have to support you in your old age :) Right now, I don't even have an RRSP or any emergency funds. An emergency fund is going to be the first thing I put money into, once I have some :) And after that, I think that I might take the kids on a small trip, so they can have some mom-time. I've been so busy with studying for the LSAT in June and getting separated in July, they haven't had my full attention for a while.

I think this sounds like a wonderful plan! But it is nice to daydream about all the alternatives :)  Good luck with everything and make the most of your fresh start!

Sometimes I think daydreaming about the possibilities is more enjoyable than the actual reality would be :)

[david51]

$50,000 and a new start? I'd get a vanity license plate to let the whole world know.

    Are you aware if you read the first 4 letters as one word, and the last 4 letters as another word, you might be sending a message you weren't planning on sending.

[arebelspy]

WOW, I did not see that the first time.  Well done!

[Zamboni]

Hahaha, whoops!

[LeRainDrop]

$50,000 and a new start? I'd get a vanity license plate to let the whole world know.

Are you aware if you read the first 4 letters as one word, and the last 4 letters as another word, you might be sending a message you weren't planning on sending.

Isn't that the whole point of the joke?  Person spends a bunch of money for a special plate and doesn't realize that they ended up sending a really embarrassing message?

[onehair]

Awww Redstone get the kids luxury shoes or phones they don't need and an SUV for yourself!! Treat yourself.... Just kidding I rather prefer the maxing out the investment accounts and maybe opening 529s for the kids....

[deeshen13]

I guess I'll chime in and say that while a good chunk of money, 50k isn't FIRE money. With limited information, I would suggest an emergency fund, then maxing your tax-deferred/advantaged accounts, HSA. Consider a small portion to invest in human capital to increase your long-term earnings potential (not talking law school though). Your long term earnings potential will be the main driver for FIRE success, not this lump sum. Good luck!

[RedmondStash]

I wouldn't spend it. I'd research investments (I don't know about Canadian investing), and find a good place for it to grow.

You don't mention whether you can cover your current expenses on your current income. If you can't, I'd recommend putting the money somewhere where you can easily get access to it but it can earn some modest interest. If you can, I'd invest it in something longer-term and then forget about it, but make sure that you can get to it in a pinch.

I understand the desire to go a little nuts and spend lavishly, but right now, your life has just taken a big turn. I'd recommend caution and settling into a new normal before letting your safety net slip away.

[jorjor]

$50,000 and a new start? I'd get a vanity license plate to let the whole world know.

    Are you aware if you read the first 4 letters as one word, and the last 4 letters as another word, you might be sending a message you weren't planning on sending.

It's time to correct old misconceptions. That's why I'm making...a new start.

I've already got the license plate, so go cry in your pie!

[jorjor]

For those following along at home, it's from the show Arrested Development. Tobias decides he has "a new start" to life, and gets that license plate.

[arebelspy]

For those following along at home, it's from the show Arrested Development. Tobias decides he has "a new start" to life, and gets that license plate.

Ah. I only watched the original run (a few times), not the new seasons.  That seems fitting.  :)

[Metric Mouse]

For those following along at home, it's from the show Arrested Development. Tobias decides he has "a new start" to life, and gets that license plate.

Oh Tobais...that blow hard.

[MsPeacock]

I guess I'll chime in and say that while a good chunk of money, 50k isn't FIRE money. With limited information, I would suggest an emergency fund, then maxing your tax-deferred/advantaged accounts, HSA. Consider a small portion to invest in human capital to increase your long-term earnings potential (not talking law school though). Your long term earnings potential will be the main driver for FIRE success, not this lump sum. Good luck!

+1. I would focus on emergency savings and investment/retirement savings. From my perspective, the kids can borrow for college, but you cannot borrow for retirement. W/ your current income and 3 kids it would be difficult to build another 50k nest egg, so I would hold onto it.