It’s always nice to receive more money than we were expecting, but that’s just what happens (or can happen) when it comes to bonus time at work. You might be walking home with a check that’s much bigger than your usual go home pay. Elsewhere, you might receive an inheritance, or your years of saving might show themselves to be pretty profitable after all! But if you’ve gone money to spend, where exactly should you spend it?
Here are 5 tips on how to make your money go far.
Get Out of Debt
This is the very first thing you’ll do as it’ll be the best investment you ever make. Debts are bad news, for a number of reasons. For starters, they’re a drain on your finances and end up costing much more than they should if you don’t pay them down. Second, it’s your way to financial freedom! Before anything else is bought, get rid of any and all debt that might be in your name. It’ll be a huge weight off your shoulders.
Invest in Property
Of course, like every other type of investment, there are risks to buying a home as an investment, but it is one of the more stable options – though only if you really know the area in which you want to buy and know what to look for in a property. If you do, then look at homes for sale and add to your property portfolio. It’ll be one of the best investments you make, and if you buy in the right area may bring you a much greater cash windfall many years down the line.
Play the Stock Market
Now, it goes without saying that the stock market is risky. But there’s a reason many people choose to invest in it – it can be a great way to make your lump sum of money grow bigger and bigger. Naturally, it won’t be something you just jump in to. Take your time studying the many options that are available. It’s also a good idea to only put your money in products or services that you know well and which you have an interest in anyway.
Into the Bank
Unless something drastic happens, it’s fairly likely that any money you put into a bank will be pretty safe further on down the line. It is true that the returns from putting money into a savings account aren’t anywhere as great as what might come from the stock market, but they are more stable and you’re guaranteed to make your money grow.
Managed Accounts
If you’re talking with significant investments, then it’s best to get the experts in and let them take care of your money. They know what they’re doing and will be able to ensure that your funds are diversified enough – including domestic and international investments – that they’ll be safe in the long run. This is definitely not a get rich quick scheme; you should be in it for the long term if you hire a financial advisor.