This is a collaborative post by Ellie Jo with financial tips.
It’s a bittersweet moment to hear that you’ve received an inheritance. On the one hand, you have lost someone close to you, but on the other, this is something that could set you up for a great many years in the future.
It’s hard to know whether to be happy about a windfall when it comes from someone dying, but if you are lucky enough to be in receipt of one, you have to use it wisely.
An inheritance should never be wasted, as it’s unlikely that you’ll ever receive such a sum of money ever again. It’s an opportunity that you should not waste, and there are plenty of smart ways to invest an inheritance.
You can choose to either build a future, invest in yourself or sit on it until you figure something out. Either way, you need to make a decision, and we’ve got several ways you can use an inheritance for good!
What To Do With An Inheritance
Invest In A House
As with any large investment, you may need to get some advice. Coming into money is a good thing, but if you want to put it into something as big as a house.
A house is a good way to spend an inheritance, as you are investing in your future as much as you are your future children. You can either use it for a sizable deposit, or you can buy the house outright – which would be a gift! Be very sensible if you can, as while it may be fun to go all out and buy a beautiful house, you want to be careful with your inheritance.
Wait A While
Perhaps you have no idea what you would do with that money. It’s okay if you don’t; a lot of money at once can be overwhelming.
The best thing that you can do is talk to a financial advisor and learn about where you can invest your money so it will grow. If you can make your money grow, you can do more with it in time. Don’t risk it all at once; get the best advice possible before you commit any money into anything.
Invest In Yourself.
Sometimes, you need to put yourself first. Investing in yourself is the best thing that you can do if you want to do something wonderful with your money.
Go back to school and study, get that cosmetic surgery you have been coveting – no matter what you choose to do, you need to choose something that is just yours to have. Education is the best investment in your future, as you can build yourself into a role that will up your salary while ensuring you are giving something to yourself.
Invest in Your Future
If you don’t have any major plans right now, your inheritance money could be invested to help provide for your future instead. Whether you have plans to buy a bigger house or you want to help fund your retirement, there are a lot of different investment options out there for you.
Invest In College
Not only could you invest in your own education, but you could also use your inheritance to put money away for your children. Think about what they would need from the future and then open bank accounts to raise interest on the money.
Give It Away
If you are comfortable, and you don’t need the money that came in from an inheritance, look at giving it to those who do need it. If you don’t want to just throw money at a problem, then buy things that people will need and give them out.
Buying tents and sleeping bags for the homeless can go a long way and make a huge difference to someone.
Start A Business
Money to invest in a business you’ve long since wondered about will help you to build a new future. Don’t start a business that you don’t believe in, though. It’s not something you do on a whim; make sure you have a future in it before you invest with anything.
Go And See the World
Right now during a pandemic, the world is not open for you to see it. So, you need to think about all the places you would want to go when freedom is yours once more. Imagine how amazing it will be to book all those trips and tickets you’re desperate to see! It will be one way to open your eyes and see the world.
An inheritance can change your life in so many ways, and if you put your money into the right places, you’re going to enjoy life a little more. Even if you don’t spend any cash right away, you’re going to have it waiting. The choice of what you do with your future is all yours.
Greg is a Chartered Financial Analyst (CFA) with 22+ years experience in Financial Services. He has held numerous FINRA Securities licenses (series 7, 63, 65, and 66), and is an expert on Investment Products and Financial Planning. Greg has 22+ years experience as a real estate investor and degrees in Psychology and Philosophy.
Greg has been quoted/interviewed in Yahoo Money, Yahoo Finance, USA Today, Authority Magazine, Realtor.com, Business Insider, and others.
Greg is an avid runner, and the father to identical twin girls and their awesome brother. His love of budgeting and his kids led him to join The Great Resignation in 2021.
Disclaimer: Any Financial Tips on ChaChingQueen are general and informational. Speak with a professional about your specific situation.