Growing your savings can be a challenge, especially if you face competing financial obligations. So if you’ve managed to save $10,000 — congratulations. The next step is putting that money to good use.

Is $10,000 in savings good?

Overall, $10,000 is a positive step toward financial security, but whether it's "good" depends on your individual circumstances and financial goals.

The median balance for all transaction accounts (checking accounts, savings accounts, money market accounts, call accounts, and prepaid credit cards) is just $8,000, according to the Federal Reserve’s Survey of Consumer Finances.

So, if you have $10,000 saved up, you’re ahead of the curve. And in general, $10,000 is a good starting point for many people, especially if you have clear goals and little debt. And there are steps you can take to maximize that money and save even more.

Read more: How to save $10,000 in a year

What to do with $10,000 in savings: 3 smart options

It can take a lot of time, dedication, and patience to hit $10,000 in savings. Once you get there, you might not have a clear plan for using that money.

If you’re looking for inspiration, consider these three ways you can use $10,000 in savings to improve your personal finances and set your future self up for success.

1. Earn interest on your savings

If you’ve been keeping your money in a basic checking or savings account, you could be losing out on hundreds of dollars in interest earnings.

Today, the national average interest rate for savings accounts is just 0.46%. However, some banks and credit unions offer rates well above this average. In fact, you could earn as much as 5% APY by opening a high-yield savings account, certificate of deposit (CD), or money market account.

What would that mean for your savings? If you deposited $10,000 in a savings account that earns 5% APY and didn’t touch the money for one year, you’d earn $500 in interest. Now let’s say you left your original $10,000 in the account for three years while it continued to accumulate compound interest (and didn’t make any additional contributions). At that point, you’d have $11,576 — including $1,576 in earned interest. Not bad for money that’s just sitting in the bank.

2. Pay off high-interest debt

Carrying high-interest debt means you’re losing money each month. Even if you’re saving money while paying off debt, the interest rates you’re paying are likely much higher than what you’re earning on your savings.

So, if you have $10,000 in savings, consider using it to pay off some or all of your debts.

Say you have a credit card balance of $5,000 at an APR of 22%, and you pay $200 toward that balance each month. Assuming you don’t make any new charges, it would take you 34 months to pay off that debt and cost you $1,604 in interest.

However, you could take half of your savings and wipe out that $5,000 debt immediately. Not only would you save over $1,600 in interest charges, but also you would have an extra $200 per month you could set aside to earn interest.

3. Invest

If you’re saving for a long-term goal, such as retirement or a child’s college education, or simply trying to grow your wealth as much as possible, even the competitive interest rates offered on high-yield deposit accounts won’t be enough to get you there within a reasonable amount of time.

In this case, you’ll need to invest in the market. Historically, the average stock market return is about 10% per year as measured by the S&P 500 index. Though you’ll take on more risk, and maybe even see your portfolio value go down at times, you’ll be able to grow that $10,000 significantly in the long run.

If possible, prioritize contributing to a tax-advantaged account such as an IRA, 401(k), or 529 plan. If you’ve already maxed out your contributions for the year, you can buy additional investments through a taxable brokerage account.

But if you’re not comfortable crafting your own investment strategy, consider speaking with a reputable financial adviser who can customize a plan that fits your risk tolerance and financial needs.

Finding a fiduciary financial adviser doesn't have to be hard. SmartAsset's free tool matches you with up to 3 financial advisers that serve your area in 5 minutes.