According to TheRichest.org , amazing stories about inheritances do happen. Some people are given money and were randomly chosen by rich folks. Some are left with great sums after years and years of frugality.
How would you react if called by a stranger and said he’s leaving you with a million bucks?
How would you manage money left by relatives?
Forbes .com says people tend to take care of money inherited. They kind of save it as contrasted to money won in lottery.
Inheritances are indeed blessings. Here are a few tips on how to spend it:
1. Invest in real estate
There a lot of advantages in investing in real estate. Yahoo voices enumerates some advantages.
Money won’t last forever, so why not exchange it for something that will? Experts say land property is the wisest thing to buy with money. It’s always there, it can’t be stolen, and is very unlikely to depreciate.
If you have your own property now, buying some more won’t hurt. It’s an investment that can bring in more money years later. The advantages of buying real estate are the following:
- You can get away and relax. How does owning a beach house sound to you?
- You can lease it. Rent keeps rolling every month. Great isn’t it?
- You can sell it in the future
- You can pass it on to children
- You can improve it to increase value
2. Pay off debt
Do not hesitate to pay all debts with some of your inheritance. Always remember that debts are like anchors. They will hold you down and keep you down.
Financial experts like Justin Pritchard advice on paying off debt as soon as you can. They say you’d be better financially by doing so.
On a personal side, paying off debt gives you:
- Peace of mind
- Better health
3. Finance your retirement
How do you see yourself when you’re gray? Do you know how much your pension will be?
With your inheritance, you can secure a more comfortable living.
With your own savings, you can still travel. You’ll be able to go on a romantic date with the wife. You’ll be able to enjoy old age.
4. Fund your children’s education
Getting children through college is a pretty expensive task. Take this opportunity to fund their education with your new found wealth!
According to news, tuition fees keep on rising. They double every few years.
In order to spare yourself from worrying in future years, invest in reliable education plans.
5. Make sure you have adequate insurance
You’ll never know when another Katrina will hit the country. And we all hope a hurricane like Sandy won’t happen again.
Remember how hurt people were? Did you see their homes? Their cars were wrecked.
Whatever kind of insurance you need, a portion of your inheritance can fund it. Invest some of your inheritance on health and life insurances too. These will make living more comfortable in the future.
6. Create an emergency fund
It’s always ideal to create an emergency fund. Why? The future is full of unexpected circumstances with which money is involved.
Putting in some of your inheritance in a fund will catch you in cases of:
- Sudden illness
- Loss of job
- Car and house repairs