TexasEscapes.com HOME Welcome to Texas Escapes
A magazine written by Texas
 
New   |   Texas Towns   |   Ghost Towns   |   Counties   |   Trips   |   Features   |   Columns   |   Architecture   |   Images   |   Archives   |   Site Map


Columns | Go Far With Kovar

How Should I Allocate my Money From a Settlement?

by Taylor Kovar

Hi Taylor - I just came to a settlement after a hit and run. After all was said and done, I'm physically okay and got about $50,000. I don't have outstanding medical bills, but I do have some credit card debt and a car payment. I'm also currently unemployed, as my former company downsized and cleared out the marketing department. Any advice for how I should use this money? - Josh

Hi Josh - Glad to hear you're doing well! I've got a few thoughts about how you should allocate those funds, and I think we should look at your situation chronologically.

1. Immediate expenses. The last thing you want to do is go on a spending spree and blow through $50,000, especially since you're not currently working and you don't want to become overleveraged. You should pay off the credit card debt immediately, because that will reduce your monthly payments. After that, spend as little as possible while you look for your next job. I suggest waiting to make big investments, while you're currently unemployed.

2. The next step. While I don't want you to spend flippantly, I'm okay with you investing in your profession. Is there a course that will help you earn a higher paying position with another company? Can you purchase software that will enable you to work freelance and start bringing in income right away? Marketing is an excellent and competitive field, and you could have a great opportunity to get ahead. There's a fine line to walk with a windfall like this; you don't want to spend money while you're not generating income, but investing in yourself is usually the best way to increase your future earning potential.

3. Investing in the future. Have you been receiving unemployment since getting laid off? If you have money coming in that covers most of your bills, you should be safe to invest around $5,000. Once you're working again, I'd invest another $10,000 or so. You can put this money in a dividend-paying stock, or use Betterment.com if you want a company to guide you. Stay away from mutual funds and bonds for now and go with an option that won't crush you with fees. You can use this time to learn about the stock market and investment options, and then when you're back at work you'll be ready to get your money moving.

While you think about your next move, try to keep $45,000 in the bank. Pay off your credit card, invest a small amount if you're receiving unemployment, and see how quickly you can find a good job. After your career gets back on track, you can start having fun with your investing. Good luck, Josh!


Taylor Kovar June 29, 2018
More "Go Far With Kovar"

Disclosure: Information presented is for educational purposes only and is not an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance. To submit a question to be answered in this column, please send it via email to Question@TaylorKovar.com, or via regular mail to Lessons on Wealth, 106 E Lufkin Ave., Lufkin, TX 75901.

"Go Far With Kovar"

  • Is it Better to Buy a House or Continue Renting, Given My Financial Situation? 6-22-18
  • Summer Money Saving Challenge 6-15-18
  • What is The Best Way to Use my Lottery Winnings? 6-8-18
  • Any Tips to Prepare Property Before Selling? 6-1-18
  • How should I tell my friends I'm trying to cut back on spending? 5-25-18

    more »

  • Texas Escapes Online Magazine »   Archive Issues » Go to Home Page »
    TEXAS TOWNS & COUNTIES TEXAS LANDMARKS & IMAGES TEXAS HISTORY & CULTURE TEXAS OUTDOORS MORE
    Texas Counties
    Texas Towns A-Z
    Texas Ghost Towns

    TEXAS REGIONS:
    Central Texas North
    Central Texas South
    Texas Gulf Coast
    Texas Panhandle
    Texas Hill Country
    East Texas
    South Texas
    West Texas

    Courthouses
    Jails
    Churches
    Schoolhouses
    Bridges
    Theaters
    Depots
    Rooms with a Past
    Monuments
    Statues

    Gas Stations
    Post Offices
    Museums
    Water Towers
    Grain Elevators
    Lodges
    Stores
    Banks

    Vintage Photos
    Historic Trees
    Cemeteries
    Old Neon
    Ghost Signs
    Signs
    Murals
    Gargoyles
    Pitted Dates
    Cornerstones
    Then & Now

    Columns: History/Opinion
    Texas History
    Small Town Sagas
    Black History
    WWII
    Texas Centennial
    Ghosts
    People
    Animals
    Food
    Music
    Art

    Books
    Texas Railroads

    Texas Trips
    Texas Drives
    Texas State Parks
    Texas Rivers
    Texas Lakes
    Texas Forts
    Texas Trails
    Texas Maps
    USA
    MEXICO
    HOTELS

    Site Map
    About Us
    Privacy Statement
    Disclaimer
    Contributors
    Staff
    Contact Us

     
    Website Content Copyright Texas Escapes LLC. All Rights Reserved