Should my wife and I use the $25,000 that we have saved to buy a house or invest the money elsewhere?

My wife and I currently have $25,000 in a high-yield money market account. It is not making much interest. We have very little debt, just a car loan, but we are trying to decide if we want to buy a house or invest the money elsewhere in stocks, bonds, etc. We have one child and another on the way. We are renting, but the rent payment is very reasonable. What should we do with this $25,000?

Debt, Investing, Bonds / Fixed Income, Real Estate, Stocks
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September 2018

It depends on what other resources you have. At the absolute minimum, you want to maintain at least 3-6 months of living expenses in a high-yield saving account for emergencies. If you have that saved already outside of the $25k, then sure, go ahead in invest it. If this is the only emergency funds you have, I would not touch it. Rather, I'd shop around for the highest yield you can get on it. Ally bank pays around 1.85% right now, which is really pretty good for cash all things considered.