This is a collaborative post
There may be different times in your life where you come into money. It might be that you are lucky enough to have a great lottery win. Someone’s got to win it, right? It might be that you have inherited money through family, or maybe you have been awarded the money because of an accident or an insurance claim. However you get the money, what you do with it is going to be a focus of your mind and thoughts.
How do you ensure that you make the most of the windfall? You don’t want to look back and see that you have spent it frivolously. Of course, everyone is entitled to a little bit of spending fun. A great holiday, perhaps some new clothes or things for your home, but if you want the money to really count for something then you will want to use it wisely. Here are some of the best ways that you can put the money you have gotten to good use.
Invest in property
Property can be one of the best ways that you invest your money. There are are so many different options that you could consider, that you are bound to find something that will suit your needs or excite you in some way. Let’s start with an obvious one, owning your own home. Right now you may be stuck in the private rental market, wondering if you will ever own a house. Or perhaps you are on the property ladder but need a bigger house or to move to a different area that requires more funding. Doing this could help secure your future in some way, and property can hold its value or even increase in time.
You could look at buying additional properties as well. Perhaps investing in a run down house that needs work, enabling you to make a profit on your initial investment. Or you could look at future plans and being able to earn a passive income from having a rental property portfolio. Looking into different types of property would always be advisable, whether that is a bungalow, an apartment, or a detached house, think of all of the options that are suitable. You may even have enough money to invest in your own development. Buying a plot of land that you could build multiple properties such as houses or a block of apartments. With property you are bound to be able to increase your investment in the future, which is why it can be a popular way to invest your money in the first place.
Save for future spending
Maybe you want to be sensible. Right now you may have all that you need, but you know that the future is going to require some spending. Saving it could be the answer, and if you are prepared to not take out regular withdrawals, you can earn a little on the interest as well. It might be that you plan on having a family at some point, or you want to get married and don’t want to go into debt for a wedding. It could be that you like the idea of saving for your children’s college funds. Perhaps their first car, or to help contribute to their first house purchases. We know that it is getting harder for the millennial population to get onto the property ladder, so you may be able to help them do that quicker. There may always be a time where you need the funds, so rather than giving into the temptation of spending it now, putting it to one side for when you need it can help you to plan for your future.
Start a business or invest in one
You may want to think about a business and using the money to start your own. Many people have the ambition to eventually work for themselves. This could be your time to actually make that dream your reality. The one thing that puts people off taking that plunge, is losing the security of a job and a regular wage. If you had the funds behind you, then you could take some of the worry away. Perhaps you have an idea or a hobby that you know could make the perfect business. Investing into your business could finally give you that work and home life balance that you have been craving.
Furthermore, if you don’t have the idea for a business, and you are not sure what you want to do, then you could look at investing in a startup that someone else is in control of. Perhaps you are just interested in getting a return, or you want to have involvement in someone else’s idea and feel a partnership is more your thing. You could definitely find that this option is less of a risk and pressure on yourself, but it does mean that you are putting your faith into someone else. Which can be nerving and overwhelming.
Upgrade things in your life
Finally, there is no hiding from the fact that there may be things in your life that you have gone without or made do with because money has been tight. Perhaps you have a car breaking down every five minutes. Maybe you love your home but you have avoided taking on necessary repairs and renovations because the money hasn’t been there to do it. Maybe you want to focus on yourself, take that holiday or career break that you have been wanting and start to travel.
There is no harm in enjoying the money that has come into your life. After all, we are all well aware that life is too short. The main thing to think about is to ensure that you don’t rush your decisions and you spend it wisely. This will enable you to look back and see the value in your decision, instead of having your thoughts filled with regret. Let’s hope that this has given you something to think about if you have been fortunate enough to come into a lump sum of money.