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Money makes the world go \u2018round, so what happens if some surprise cash comes your way? According to a study from financial services company Empower, which surveyed 1,011 Americans in early March 2026, 65% of Americans said they\u2019d save or invest any money they\u2019d receive from a financial windfall (1). When it comes to debt, 52% said they\u2019d put money towards it and 37% indicated they\u2019d get immediate financial relief by using it to pay their bills.<\/p>\n
Okay, so that\u2019s what people say they would do with their winnings. But what should people be doing with the money?<\/p>\n
Top Picks <\/p>\n
The ultra-rich use these 5 real estate strategies to build wealth while they sleep \u2014 you can start with just $100<\/a><\/p>\n The IRS usually taxes gold as a collectible \u2014 but this little-known strategy lets you hold physical bullion tax-free. Get your free guide<\/a> from Priority Gold<\/p>\n Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake \u2014 here\u2019s how to fix it ASAP<\/a><\/p>\n Let\u2019s pretend that Arya just turned 30 and her aunt gave her a $10,000 birthday gift to celebrate the milestone. Arya has to figure out what to do with all that cash and she\u2019s just not sure about the best approach.<\/p>\n Here\u2019s what financial experts recommend.<\/p>\n Get rid of expensive debts <\/p>\n It may seem like the obvious solution, but resolving burdensome debt is probably the best thing to do with a $10,000 windfall, if you owe money.<\/p>\n \u201cMy first recommendation would be to pay off or make a significant dent in high-interest debt, particularly credit card balances. Earning 4% or 5% in a savings account is nice, but eliminating debt with interest rates in the teens or even higher often provides a much greater financial benefit,\u201d Mary Ware, senior wealth advisor and managing partner at Carnegie Private Wealth in Charlotte, North Carolina, told Moneywise (2).<\/p>\n With the average credit card interest rate at 21% as of February 2026, few investments are going to beat the ROI you get from paying off credit card debt (3).<\/p>\n \u201cLingering credit card balances can quickly compound against us,\u201d Clifford C. Cornell, financial advisor at Bone Fide Wealth, LLC, told Moneywise. \u201cA windfall of this nature could be exactly what someone needs to level the playing field\u201d (4).<\/p>\n Consolidate your debt <\/p>\n If you\u2019re in a similar situation, a sudden $10,000 windfall can feel like a financial reset button. But there are also more ways to take that windfall further: consolidating debt.<\/p>\n If you\u2019re carrying balances across multiple credit cards or personal loans, debt consolidation could help simplify your finances by rolling everything into one loan with a potentially lower interest rate.<\/p>\n Instead of keeping track of several due dates, interest charges and minimum payments, you\u2019ll have one predictable monthly payment. What\u2019s more, lowering your interest rate could mean putting less money toward interest and more toward actually paying down the balance you owe.<\/p>\n Through Credible\u2019s online marketplace<\/a>, finding the right loan becomes that much simpler.<\/p>\n You can comparison-shop for the lowest interest rates<\/a> with just a few clicks for free.<\/p>\n In less than three minutes, you\u2019ll see all the lenders willing to help pay off your credit cards or other debts with a single personal loan. You can find personal loans starting at 5.96% APR<\/a>. Credible also offers a best rate guarantee \u2014 and if you close with a better rate than you prequalify for on the platform, you\u2019ll get a $200 gift card.<\/p>\n If you owe a substantial amount, you may also want to see if you qualify for a debt relief program<\/a> to help clear a significant portion of your debt.<\/p>\n With Freedom Debt Relief, you can speak with a certified debt relief consultant for free<\/a>, who can show you how much you can save by partnering with them.<\/p>\n If you\u2019re eligible, they can negotiate settlements with your creditors until all of your enrolled debt is resolved.<\/p>\n Read More: Thanks to Jeff Bezos, you can become a landlord for $100 \u2014 without the headache of actually being one<\/a><\/p>\n Save for emergencies <\/p>\n Because Arya isn\u2019t in debt, bulking up her emergency fund would be the next best place for her $10,000 to go. \u201cI\u2019d encourage people to ensure they have at least three-to-nine-months\u2019 worth of living expenses set aside as their cash reserve,\u201d Cornell told Moneywise.<\/p>\n While it\u2019s an older study, published back in October 2015, Pew Research found 60% of households had experienced a financial emergency over the previous year (5). Being prepared for these unexpected expenses prevents future debt and provides peace of mind.<\/p>\n \u201cMany people\u2019s financial lives were devastated by the pandemic,\u201d Robert R. Johnson, a professor of finance at Creighton University\u2019s Heider College of Business, told Moneywise. \u201cTo those who were unaffected, the pandemic should serve as a lesson to get their financial house in order. There may be another catastrophic event in the future\u201d (6).<\/p>\n Make your emergency savings work harder for you <\/p>\n Building an emergency fund is one of the first steps toward financial security. It can help you handle unexpected expenses without reaching for a credit card or taking on expensive debt.<\/p>\n But where you keep that money matters.<\/p>\n Leaving your emergency savings in a traditional checking or savings account could mean missing out on potential returns \u2014 especially while interest rates remain elevated.<\/p>\n A high-yield account like a Wealthfront Cash Account<\/a> can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.<\/p>\n A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%<\/a>.<\/p>\n That\u2019s ten times the national deposit savings rate, according to the FDIC\u2019s March report.<\/p>\n Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000\/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%<\/a>.<\/p>\n With no minimum balances or account fees, as well as 24\/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8 million FDIC Insurance eligibility through program banks<\/a>.<\/p>\n Invest the money <\/p>\n Since Arya\u2019s already got her emergency fund in place, experts say her next step is to invest with her newfound $10,000, either for retirement or for other milestone goals.<\/p>\n \u201cIf you are behind on retirement savings, I would consider putting money away for retirement,\u201d Domenick D\u2019Andrea, founder of DanDarah Wealth Management, told Moneywise (7).<\/p>\n \u201cBrokerage accounts, Roth IRAs, HSA, 401(k)s are all great places to look,\u201d says Cornell. The right account depends on whether you want to save for retirement, healthcare, or even a short-term need.<\/p>\n Start with the basics <\/p>\n Low-cost index ETFs tracking the S&P 500 are popular among long-term investors because they offer broad market exposure without the high fees often associated with actively managed funds. Historically, the S&P 500 has delivered roughly 10% average annual returns over long periods (8).<\/p>\n While Arya may have a $10,000 windfall to put toward her goals, many Americans are starting with much smaller amounts. In fact, roughly 3 in 10 Americans have more credit card debt than they have in emergency savings, according to a Bankrate survey (9).<\/p>\n There\u2019s a silver lining \u2014 you don\u2019t need a huge lump sum to start investing. Even modest contributions can add up over time thanks to compound growth. The most important step is simply getting started and staying consistent.<\/p>\n For instance, investing just $20 each week can add up to over $180,000 in 30 years if it compounds at 10% annually (10).<\/p>\n If those kinds of returns are too tempting to pass up, platforms like Acorns<\/a> allow you to turn your spare change from everyday purchases into an investment opportunity.<\/p>\n Signing up for Acorns takes just minutes: All you have to do is link your cards and Acorns will round up each purchase to the nearest dollar, investing the difference \u2014 your spare change \u2014 into a diversified portfolio managed by experts at leading investment firms like Vanguard and BlackRock.<\/p>\n With Acorns, you can invest in a S&P 500 ETF with as little as $5 \u2014 and, if you sign up today and set up a recurring investment, Acorns will add a $20 bonus<\/a> to help you begin your investment journey.<\/p>\n Get expert stock picks <\/p>\n For those willing to accept market volatility, a $10,000 windfall could be an opportunity to put your money to work in the stock market.<\/p>\n Investing in strong companies with solid fundamentals could help your money grow over the years. Even a single smart investment decision can make a meaningful difference.<\/p>\n Of course, picking winning stocks is easier said than done. If you don’t spend your days following earnings reports, economic data and industry trends, having a little guidance can go a long way.<\/p>\n That\u2019s where platforms like Moby<\/a> come in. Their team of former hedge fund analysts and experts spends hundreds of hours each week sifting through financial news and data to provide you with breaking stock recommendations.<\/p>\n Moby\u2019s success speaks for itself. The platform\u2019s stock picks have outperformed the S&P 500<\/a> index by about 11.9% over the past four years.<\/p>\n Even better, Moby offers a 30-day money-back guarantee<\/a> so you can see if the service is right for you. And if you sign up for Moby Premium you get one free top-stock<\/a>.<\/p>\n Spend it on something fun <\/p>\n Finally, once Arya has all of the essentials covered, part of that $10,000 windfall could be used for something she may simply enjoy.<\/p>\n \u201cIf you have covered all of these answers, then maybe go on a nice vacation,\u201d D\u2019Andrea told Moneywise. While it may seem surprising for a financial expert to spend money on something frivolous, there\u2019s nothing wrong with using a windfall to enjoy life a bit. That\u2019s especially true if you are in good financial shape and tend to be pretty responsible with your money.<\/p>\n Arya may enjoy a cute little car to drive around in, or a personal trainer to get healthy and since she\u2019s free of high-interest debt, ready for emergencies and planning to invest some of the cash, there\u2019s nothing wrong with her using the money to treat herself to a splurge (within reason).<\/p>\n – With files from Christy Bieber.<\/p>\n You May Also Like <\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/p>\n Article Sources <\/p>\n Empower (1<\/a>); Carnegie Private Wealth (2<\/a>); Federal Reserve Bank of St. Louis (3<\/a>); LinkedIn (4<\/a>); Pew Research Center (5<\/a>); Creighton University (6<\/a>); Dandarah Wealth Management (7<\/a>); Fidelity (8<\/a>); Bankrate (9<\/a>); Acorns (10<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. 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