15 Places to Put Your Cash When You Have Extra Money to Spend

  • Time to read: 7 min.

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If you ever have extra money to spend, you might wonder where it’s best to put extra money so that you can make it grow. In this article, I’ll talk about 17 different places you can put extra cash when you have extra money to spend so that you can keep it growing and make more money.

Retirement Accounts

Putting extra money into a retirement account such as a 401(k) or IRA is always a good idea, especially if the company matches contributions made by their employees up to a certain percentage of your income. For example, if your employer offers 3% match and you make $50,000 per year, after one year your retirement account would contain an extra $1,500 because 3% of $50,000 is $1,500.

Emergency Fund

If you do not already have an emergency fund set up for unexpected expenses that may come up, you might consider setting one up for extra money to spend. Having an emergency fund can protect you in the event of unexpected unemployment or medical expenses.

College Education Fund

If you have extra money to spend and are considering having children in the near future, consider starting a 529 college savings plan so your child can afford tuition when they graduate high school. These plans allow parents to save extra cash for their children’s’ future without worrying about penalties or tax consequences.

Tax-Free Accounts

Putting extra money into tax-free accounts such as Roth IRAs can help you set extra money aside for retirement while avoiding taxes entirely. This allows the extra money you put in to grow much more than it would otherwise be able to without any taxes cutting into its growth.

Down Payment Fund

what to do when you have extra money to spend.

Buying a house is one of the biggest purchases most people make in their lifetimes. When you have extra money to spend, consider putting it into a savings account with the goal of having enough extra cash for a down payment when you’re ready to buy your house.

Tax-Deferred Accounts

Putting extra money into tax-deferred accounts is another way that helps people set extra money aside for retirement without worrying about penalties or taxes cutting into its growth potential. These types of extra money to spend are especially useful if you own stock in high-performing companies and would otherwise be required to pay taxes on the dividends those stocks provide year after year.

Equity Funds

If you don’t know how much extra money you’ll need for retirement quite yet, but want to extra sure that extra cash is safe and extra money is growing, consider investing extra cash into equity funds. Equity funds help you grow extra money that’s meant for long-term purposes without any extra effort on your part.

Capital Gains Fund

If you are looking to make some extra money right now by selling stocks with high dividends, consider putting the extra money gained from these sales into a capital gains account rather than another retirement or tax-deferred account. You will still see growth on your extra money after one year and avoid the taxes which come with it immediately so you can access your extra cash whenever you need to.

Gold Funds

what to do when you have extra money to spend

If you are extra paranoid about inflation or even complete failure of the economy, extra money can be placed into gold funds that will help you protect any extra cash you have from losing value over time.

Checking Accounts

If you don’t need to invest extra money for retirement, consider putting extra money into a checking account so it’s available should anything come up in the near future. This is not a great move if you want your extra money to grow over an extended period of time since checking accounts typically pay little-to-no interest on extra cash.

Investment Accounts

Setting up an investment account is a great way to put extra money to work when you’re not sure what kind of return it will receive. These extra money to spend accounts are not guaranteed, but can help you make extra money when you need it most. One investment account that is really popular right now is Robinhood.

High-Yield Checking Account

If you get paid biweekly, consider putting extra money into a high yield checking account that will pay out slightly more interest than the typical checking account. This allows extra cash to grow quickly while still being accessible in case of an emergency without any extra effort on your part after the initial setup is complete.

Savings Accounts

put your extra money into a savings account

Although setting extra money aside in savings accounts typically offers little in the way of returns, they can come in extremely handy in case of emergencies or unexpected expenses which crop up every so often during life’s journey.

Retirement Funds for Self-Employed

If you are self-employed, setting extra money aside for retirement can be a great way to get extra cash while still avoiding extra taxes and penalties.

Taxable Investment Accounts

For those with extra cash that they know won’t be used for any other purpose in the near future, putting extra money into taxable investing accounts offers a slightly higher return than other types of extra money to spend options. This will also result in extra taxes and lost interest on extra money over time, so it’s not recommended unless you need the extra income from your investments right away.

Investing in Your Own Business

If you have extra money to invest that won’t be used for a down payment on a house or a loan, consider investing extra cash into your business. This extra money to spend can help grow your company and allow you to take control of its future.


use your extra money to invest into bitcoin

If you know extra money is extra safe and extra secure, consider putting extra cash into bitcoin as it’s a great way to have extra money at your fingertips with no extra effort. You’ll also be able to access extra cash from anywhere around the world as long as there’s an internet connection.

Automated Extra Money to Spend

The best way to save extra money is to have extra cash taken from your paycheck or bank account and put into a savings account, extra money to spend account, or short-term investment fund before you have a chance to touch it. This will allow extra cash to grow while avoiding the temptation of using it for something else without even realizing you’ve done so.

401(k) Plan

If possible, consider maxing out extra money that’s meant for retirement by putting as much extra cash as possible in your 401(k) plan each year; this may help reduce the amount of extra tax burdens you’ll experience over time by reducing taxable income and increasing deductions/credits which can all contribute to how much extra tax you will owe at the end of the year.

Personal Extra Money to Spend Fund

If extra cash is extra plentiful, consider putting extra money into a personal extra money to spend account to help ensure that something unexpected doesn’t happen in the future which could leave you short on extra cash until your next payday. This will allow for an easier financial cushioning experience without having to rely on credit cards or unsecured loans if extra cash becomes tight.

Roth IRA

Use your extra money to invest in a Roth IRA.

One way to avoid extra taxes and penalties associated with retirement accounts is by making non-deductible contributions to a Roth IRA; this allows people who make under $100k per year to put extra money into an account where it can grow tax-free.


Taking extra money and investing extra cash in the stock market or other extra money to spend accounts can seem like a daunting task, but it doesn’t have to be.

Many people are surprised by how quickly extra money can grow when they choose the correct types of reinvestment options when it comes to their extra income; this can make all the difference when trying to increase your overall financial future.

FAQ – When You Have Extra Money To Spend

What should I spend extra money on?

One thing you could spend extra money on is investing in your own education and personal growth. This could include taking courses, reading books, or attending workshops and seminars. Another option is spending money on experiences rather than things. For example, take a trip somewhere new, go skydiving, or take a cooking class. The memories you create will last longer than any material purchase and often provide more value than what you spent to create them.

Where can I put extra money right now?

If you’re looking for a place to put your money that will offer you the best return on investment, I would recommend investing in stocks or mutual funds. Over time, these types of investments have historically provided a higher rate of return than either savings accounts or paying down debt. However, please keep in mind that stock markets can be volatile and there is always the potential for loss. So if you’re not comfortable with taking on that level of risk, I would suggest sticking with a high yield savings account.

What can I do with $1000 right now?

There are a number of things you could do with $1000 right now. You could save it, invest it, or spend it on something you need or want. You could also use it to pay off debt or put towards a larger purchase. You could also invest it into playing Pokemon for money but that probably wouldn’t be very smart.

What can you do with extra money to make money?

Some popular ideas include starting a side business, freelancing, or investing in stocks or real estate. Whichever option you choose, be sure to research the market thoroughly and invest time and effort into building a successful business. With hard work and some luck, you can achieve financial independence and live the life you’ve always dreamed of.