If you’ve been lucky enough to come into some money, then the chances are that you’re wondering how you should spend it. Whether you have won a sum of money by playing the lottery, had your inheritance come in, or have been given a sizeable bonus from work, you are most likely feeling confused about how to spend the funds.
On the one hand, you’re extremely excited to have some extra money in your bank account and would love to go on a wild shopping spree, but on the other hand you may feel like doing so would be a waste of the money that you’ve been given. How you choose to spend the money that you have been given is, ultimately, up to you. However, that being said, it’s a good idea to be smart about how you spend it and think carefully about where you put the funds that you have been given, thinking about what you and your family need most.
The question you are most likely struggling with is: how should I spend the money? The answer to that question depends on a number of factors, including your personal circumstances. The most important thing is to think carefully about how you spend the money – the last thing that you want to do is waste it, especially if it is a rather large sum of money.
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In need of a few ideas for ways in which you could spend the money that you’ve come into without wasting it? Below, are a few tips and ideas about how you could opt to spend your money taking a smart approach to spending. Have a read, take notes, and make the time to carefully consider your options.
Clear your debts
If you’re in debt and have been struggling to pay your debts off, this windfall of cash could be the ideal opportunity to change that and finally get your debts cleared once and for all. You might think that paying off your debts is a waste of the money, but if by doing so you could gain financial freedom then it’s a worthwhile way to spend the money. Financial freedom could change the entire future of your life – think about it: no more debts to worry about, how incredible would that be?
Take that trip you’ve always wanted to take
Have you spent the last few years dreaming about taking an incredible, once-in-a-lifetime trip somewhere but have always put it off due to the cost? Well, perhaps now you could actually take that trip and head off to explore the world, like you’ve always dreamed of doing. If you’re somewhat of a travel enthusiast and have been dreaming about taking this trip for a long time, this could be your perfect opportunity to actually take the trip that you’ve always wanted to take and get out there and see the world.
Buy your own home
If you don’t already own a home of your own, this windfall of cash could be the perfect opportunity to change that. If you’ve always wanted to invest in a home of your own but have never been in a strong enough financial position to do so, this money could finally change that, allowing you to buy a home of your very own. Whether the money that you have come into will cover the deposit for a house or will pay for the entire property, it doesn’t matter – it’s a fantastic position to be in and one that you should take full advantage of.
Invest in a property abroad
If you’re someone who already owns a home but is passionate about property, perhaps you could consider investing in a property for investment purposes. An investment property can be a great option to consider if you’re looking for a way to give your long-term income a boost or as a method of saving for your pension. If you’re going to invest in property, look for properties that offer a fantastic potential return on investment, such as looking at a condo for sale or a villa for sale. Look for properties in popular areas that could successfully be rented out to long-term tenants or used to offer holiday accommodation to visitors. The travel industry is booming abroad, and if you’re smart about it, you can benefit from some of the financial success.
Treat yourself to a new set of wheels
Has your car been on the way out for a while now? Is it constantly breaking down or guzzling fuel and costing you a lot of money to run? If the answer is yes to both or either of these questions, then perhaps a great way to spend some – or all – of the money that you’ve come into could be on a new set of wheels. If you want to be smart about the car that you get, opt for a brand new car, because a brand new vehicle comes with a range of perks and protections that you don’t get with a second-hand car, including a warranty that usually runs for three years.
Put it away for a rainy day
Not in need of the money right now? Instead of wasting it on unnecessary purchases, consider putting it away for a rainy day. Just because you don’t need the money right now, that doesn’t mean that you won’t need it one day, so it’s a good idea to put it away in a savings account for a rainy day. That way, when you need the funds in the future, they will be there. To increase the amount that you have, pop the funds into a high-interest ISA.
There you have it, a few simple ideas for the ways in which you can spend the funds that you’ve been lucky enough to come into. The most important thing to remember when it comes to money is that the worst thing you can do is waste it – that’s why it’s so important to find a way to spend it that will help improve your life in one way or another.
This is a contributed post