Everyone hopes for a sudden cash windfall, whether from a settlement, a gift, an inheritance, or even winning the lottery. When you finally get it, you might have many ideas for spending it. However, you don’t want to blow it all on items that won’t mean much in the long run.
It’s much more important to spend that money wisely so that it can do more for you. There are many ways you can maximize your cash windfall, including the following examples.
Create an investment plan to maximize your spending, as you could turn $10,000 into $100,000 if you play your cards right. Begin your plan by talking to a financial advisor who can offer the best strategies on investing. They’ll consider your financial history and help you set goals, making recommendations for achieving them.
There are many options for investing, but only invest according to your comfort level. Many investments require careful study and planning ahead of time, and you don’t want to jump into something you don’t know well. Here are some of the most common investment types:
Forex Trading: The foreign exchange market is the largest, most liquid decentralized global market in the world, where $5 million worth of different currencies are traded daily. Using a good forex trading system, you could easily make your fortune in this market.
Real Estate: Most investors recommend diversifying an investment portfolio with real estate. Thanks to the multiple revenue streams available, you can enjoy high profits quickly after your initial investment.
High-Interest Savings Accounts: If you’re saving for something in the future, such as retirement or college tuition, you might use a high-interest savings investment. This is a no-risk option that uses compound interest to maximize your profit potential over time.
Make home improvements
As mentioned previously, real estate is a great investment. If you already own a home, increase the potential return you can gain by doing some home improvements. Not all home improvements will pay off in the end, however. Choose renovations which add value to your home and provide a good return on investment when you sell it. Here are some things you can do:
Minor Bathroom Remodel: With an average return on investment of 102 percent, a minor remodel that costs about $10,000 will make your home more enticing to potential buyers, increasing your profit potential exponentially.
Aesthetic Exterior Improvements: Changes to your home’s exterior, including landscaping and curb appeal, make a huge difference for home buyers. It improves the first impression, which can make a person fall in love with the home, particularly considering the area. Adding plantation shutters in Brisbane, for example, can appeal to homebuyers in the city who love the country look. It encourages more showings, helping you sell your home faster.
Roofing and Siding: When your roof and siding fall into disrepair, it’s a huge red flag for potential homebuyers. Updating these essential components of your home tends to have a return of investment of 90 to 100 percent.
Pay off debt
One of the best things you can do for your financial future is to rid yourself of unnecessary debt. The average household is looking at more than $137,000 worth of debt, even though the median income is just $59,000.
If you, like many people, are living beyond your means and have debts to pay off, use this windfall opportunity to minimize your balance. Debt hurts your credit, making it difficult to get competitive interest rates and qualify for loans or even housing.
Be smart when using your extra cash so that it does the most work for you. It might seem enticing to purchase a boat or a new car, but nothing beats the peace of mind you get from allowing your money to maximize on its own.