One of the most frequent questions we answer is "I've got [insert small amount of money here] what do I do with it?" So let's say you've got $5000 and it's burning a hole in your pocket. Here's how you should consider spending it.
Number 5: Pay off your credit card debts. If you're walking around with a 20% interest rate on your credit cards, that's an instant 20% return. It's hard to beat that.
Number 4: See the world. Studies have shown that experiences make people happier than things. For about $5000 (plus airfare and other sundry expenses) you can actually travel to Antarctica. Sure the neighbors may have a nicer car, but chances are you're not going to run into anybody else who has seen penguins outside of a zoo.
Number 3: Put it away for your children's college. The average cost of a four year public college has increased nearly 51% over the past ten years. Many states have 529 Savings Plans that lets savings for higher education grow tax free.
Number 2: Donate it to buy Vitamin A and Zinc for malnourished children. How many chances do you get to help a hungry child grow up to be a healthy adult? Buying micronutrients has been advocated as being one of the most cost-effective ways to help the world.
Number 1: Invest it so that you can do all of those things in the future.
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