You’ve Inherited A Load Of Money, What Do You Do With It?

Inheriting a large amount of money thrusts you into the middle of a financial situation that you won’t have experienced before. Having more money that you’ve ever seen before brings a lot of temptations along with it and if you aren’t careful, it’ll all be gone before you know it. Most of us are sensible enough to know that we shouldn’t just blow it all straight away, but what should you do with it? I’ll answer that question for you now.

 

 

Sit On It

When people inherit some money they immediately start looking for ways to spend it, but why? The only thing that happens if you don’t spend it is it gathers interest. It won’t disappear if you haven’t spent it in the first month. If you can’t think of anything to do with it, that just means there’s nothing worth spending it on at the moment, so why not wait until you come to a point in your life when you do need it? Spending it for the sake of it is only going to lead to bad fiscal decisions.

 

Investing

The most sensible thing to do for most people is to invest it. If you just take the cash and spend it, it runs out and that’s it. However, if you invest it sensibly then you’ve got an income for life. Real Estate is one of the most popular investments at the minute because any property that you buy is likely to appreciate in value. You’ll also pull in a lot of money every month as a landlord because rent is incredibly high at the moment.

 

As well as investing in real estate, you could consider investing in the stock market. You’ll have to pay a portion of your profits to a broker but you’ll still be making money without having to do the leg work yourself. Or you could think about investing money in a small business, just be careful what you choose because there’s a high risk of the business folding and swallowing your inheritance along with it.

 

 

Pay Off Debts

If you’re in a bit of a hole, an inheritance can give you some much needed breathing room. Paying off your debts on your normal salary can be near impossible, so if you’ve got the chance to pay them all off in one chunk, you should take it. You won’t end up with the money to invest or spend, but it helps you to regain security. It might also be worth considering paying off the debts of other family members that have landed themselves in trouble. People are often put off because they think of it as money down the drain but it can set you up for later life and give you a chance to get out of debt that you wouldn’t otherwise have had.

 

Inheriting money is usually a silver lining to the cloud of family member passing, don’t waste the opportunity by spending it all on junk, you’ll regret it in the end.

 

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