Has a loved one recently died and left you with a plethora of money? If so, you may be wondering what you can do with it. It’s amazing how much wealth a person can accumulate in a lifetime, and their family members have no real clue about it. If you’re lucky enough to find yourself in that situation, here’s how you can use it wisely:
Pay Down Your Debt
If you have received an inheritance and are saddled down with debt, consider using that money to pay down your debt. You’ll sleep better knowing your financial obligations is being taken care of or is now fully paid off.
If you’ve had difficulty saving for your retirement, you could use that inheritance for investments – even if you’re dealing with debt. Use the inheritance to make up for lost time, so that when you return to it you can live on something rather than nothing. Of course, any decision you make in regards to your inheritance should take into consideration your income. If it’s unstable or relatively low, and you don’t have an ideal retirement plan, investing the money can help.
Help Others with the Inheritance
Sometimes, it’s better and feels good to help others. This is especially true if your debt and retirement are already in good financial shape. When giving away the inheritance, there are two options.
1/ Give it to family and/or friends
You can also help your family out as well. Consider paying for your child’s education or putting the money toward a down payment on a home.
If you go with the charity option, you will be eligible for certain tax credits.
Spending It Like You Want
No one needs to tell you how you should spend your inheritance, as it’s your money. As long as you have controllable debt, you have a decent amount of retirement saved up and your income is stable, you can spend your inheritance as you wish. Consider something like a home renovation as a great way to add more value to your property.