What would I do with my second $ 500,000 savings?

The question is, what is the point of starting with the savings of a few hundred thousand USD, how to start it. In this article, we are trying to find out what direction it would take for you to start when you’re thinking about it. And it is no coincidence that the title contains the second 500,000 USD savings…

What to do with our first 500,000 USD?


There are a lot of people in the situation where we can collect the first 500,000 USD and want to invest in something. If you play with numbers, you’ll get surprising amounts:

  • we put a bank deposit in exchange for 1% net interest per year. We win 5,000 USD in one year
  • if we had put in bitcoin at a rate of 15,000 USD, today our money would be 300,000 USD, with a loss of 200,000 USD
  • if we invest in shares that will generate 10% net return, we have won 50,000 USD
  • however, if we invest this money in some kind of useful training, then we may be eligible for higher pay in the labor market. If you have earned $ 200,000 so far and you get a 10% higher salary for your training, you will win $ 240,000 a year

The best investment is always knowledge. If you already have “nothing to know,” financial instruments can come

Without the safety margin, it makes no sense!

How do I start with my first 500,000 USD? I would place it on a liquid account and appoint a safety reserve. Think about how relaxed people are, who have money on their account and don’t live from month to month. Today, 78% of the population in Hungary would go bankrupt in the event of a financial crisis no later than the third month, because there is no or minimal amount in the reserve.

It is important to have the remaining 22%…

Unfortunately, families who do not have adequate safety reserves and live from month to month are making steady financial and stupid decisions. In addition, life is the most expensive for them, as they are never able to live with 1 to 1 and thus get something cheaper! Think of the Glamor Coupon Day when you can buy detergent for one year for $ 1,500. Nah doesn’t have that money for that 78%, and instead he buys the same for 2,000 for every month …

Which one can you afford?


This is “only” $ 18,000. But can you afford this stunt at any time with 5-10 kinds of things you need? Until this answer is uncomfortable, you should not think about where to invest. You need to think about how you can upload your security backup!

What to do with our second 500,000 USD?

What to do with our second 500,000 USD?

There are no great miracles, so for such a sum you cannot have (ne) the option of trading securities, forex trading, crypto currency, buying a business share. The reason for this is that transaction costs are already counted as a percentage of such amount, and this amount is not enough to find really good opportunities.

That’s why I warn of these “opportunities”, and that is the high risk associated with these investments. The mere fact that we are talking about (yet) your second 500,000 USD means to me that you may need this amount at any time, if you just lose half your money.

The investment in human psychology is similar to what I wrote about the safety reserve. If you run the risk of relocating your investment to virtually the investment, you are nervously watching the numbers daily and you can panic very quickly. “Even before it’s late, you get out of losing.” You might call this step a loss optimization, I say that it’s stupid what the compulsion gave me.

Only the amount that would not be affected by the loss of the family budget would be risk-free. And even years can you miss this amount if the market does not develop well. It’s time for you to wait for the result.

You need to provide yourself with the basic needs of the second 500,000 USD

You need to provide yourself with the basic needs of the second 500,000 USD

Essential Need:

  • housing
  • health
  • pension
  • car

I think that as long as we talk about investing a few hundred thousand USD in investment, it is basically necessary to look for traditional opportunities and, instead of hoping for profit maximization, you have to look for real opportunities in real terms. There will be no pensions for this money, you will not have an apartment, and even for a long time you can live healthier.

However, hopefully you can save this amount for yourself every year. So you can think of ways like a health fund with a 20% tax credit or a home savings in exchange for a 30% state subsidy. If you want to start with money without a specific goal, I would be looking for the investment funds in your place that do not have the risk of being a hedge for the Forex market.

It may be a very good investment to pay our loans

It may be a very good investment to pay our loans

Now, calculate how much interest you pay each year on your student loan (interest on interest increases year by year) or on your personal loan or car loan. Ask yourself if you still have $ 500,000 in debts you would have to pay 50,000 USD in a year (10%), so why not?

In that case, you have already won the 50,000 USD you do not have to pay. In addition, next year you will not only be able to set aside the third 500,000 USD, but your free income instead of the loan (say 20,000 USD per month). So you’re going to set aside $ 740,000 without having any credit.

I claim that you will never be able to advance in life without concrete financial funds. An important point in building funds is to get rid of expensive loans and not to work for money from there on, but money will work for you.

Avoid “self-reward”

Avoid "self-reward"

It is a common mistake that after the first / second / third 500,000 USD has been collected, we feel that something extraordinary has been achieved. We keep ahead of the others, but we had to give up many things that were tiring. In this case, a voice sounds deep within ourselves that “but it would be good…”.

Nah wants nothing more than “3-minute ecstasy” for drug addicts and alcoholics, that is, to enjoy the joy of buying and satisfying the desire for possession. Stepping into something that we haven’t had the opportunity to do so, so legitimize our previous efforts to save money. This voice just forgets to say:

if you spend the money you have suffered for, then you will get back to the start field and start again.

Self-reward is never free from our savings, but from the frame that we define ourselves on a monthly basis as an envelope of recreation and entertainment.

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