If you’ve recently come into some money then first of all: congratulations! (Or commiserations, if the money arrived in your hands because of an inheritance, rather than something a little more fun like a bonus or a lottery win.) Coming into money can be a great thing, but it may be a little more stressful than you were anticipating. Here are some top tips on what to do if you have a sudden windfall…
Pay Off Your Debts
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First of all, it’s time to pay off your debts. Depending on how much money you’ve come into, this might be paying off your credit card debt, finishing up your car payments, or even paying off your entire mortgage. Not having debts will free up a lot of your salary from your everyday job to go into your savings, for something fun like a great vacation every year or something a little more sedate like your kids’ college funds. Paying off your debts as quickly as possible will help you be free of interest, which means that you’ll end up paying a whole lot less in the long run.
Update Your Home
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Secondly, why not consider updating your home? Not only will this raise your living standards (imagine how great it would be if you got an extension so your kids don’t have to fight over the shared space of their bedroom anymore?) but it’ll also end up adding value to your home in the long run, even if you don’t want to sell it just yet. Generally, loft conversions will add the most money to your home, followed by an extension. It’s also a good idea to make sure that your bathrooms and kitchen are freshly renovated. Even though any prospective buyers might want to rip them out and put in their own, a lot of people are looking for homes that they can immediately move into and live in, so they’ll want those rooms to be beautiful and functional.
Get Investing
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A lot of us aren’t even sure where to start when it comes to investments. A lot of people choose to invest in property, which will give you a steady income – you just need to make sure that you choose a suitable area, near train stations for commuters and near good schools so that the property will appeal to young families. You could also choose to invest in something like gold or diamonds – they’ll never lose their value, after all, and will always be in top demand. If you’re not sure where to begin, check out the diamond price calculator from Diamond Registry. Finally, try investing in stocks, shares, and bonds. Make sure that you diversify your portfolio and that you don’t put a huge amount of money into one company.
Save A Nest Egg
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Finally, it’s important to make sure that you save some money too. There’s nothing that gives you security more than having some money in the bank that you can rely on and that will enable you to be free in other areas of your life – having savings gives you the freedom to take risks and chances.
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