Is $5,000 a lot of money?

For our purposes today, let’s agree that $5,000 is a lot of money. At the very least, it’s a lot of money to keep in your checking account, where it’s earning little to no interest—which is less than ideal for growing or investing your money.

What to do with $5,000?

That answer could help determine what to do with $5,000. Interest accrues on cards each day they're left unpaid, so making a big payment right away could pay off. If you have debt across several credit cards, consider putting more money toward the one with the highest rate first. 2. Build your emergency savings

Should you get a surprise $5,000?

A sudden influx of cash could position you to improve your financial situation. But only if you use it wisely. "If people get a surprise $5,000, there's a tendency to think of it as bonus play money," says Aliya Padamsee, CFA, CFP ®, a director of financial solutions at Fidelity.