Have you just had a Cash Windfall? Congratulations – it’s your lucky day!
But wait. Before you hit the shops and spend, spend, spend, you might want to consider whether that tempting and somewhat shiny automobile showroom is the wisest decision.
Hold on to that luck for a few moments more. First, explore our best tips for getting the most out of your investment. We’ll guide you through the savviest long-term investment ideas for your newfound wealth.
Keep It Safe
Planning your financial future takes time. While doing that, it is imperative that you store a cash windfall somewhere safe.
The easiest option is to open a short-term savings account. Interest rates are low, so it’s not an investment choice, but it will help ensure your money is secure and not losing value while you make a more long-term decision.
Pay Off Expensive Debts
Suppose you are paying hefty monthly interest in outstanding debt. In that situation, there is little sense in investing your cash windfall and making money off that investment while you hold that debt.
Consider what the long-term cost is for that debt. Doesn’t it make sense to pay it off?
Do an audit of all your outstanding debt – store cards, credit cards, car loans, and mortgage, and total this up. Pay off the debts with the most expensive interest rate first. That will lower your long-term debt expenses.
Build a Diverse Portfolio
Whether you want to invest in Crypto, property, or the stock market, the best way to treat your cash windfall is to focus on diversification.
Split your investment strategy across a range of assets and investments.
That will allow you to hedge your bets in uncertain and volatile markets. You could invest in a financial product with built-in diversification, or you could have a go at investing yourself with a buy low sell high strategy.
Don’t Forget About Your Retirement Plan
Depending on your age, retirement might be far off your radar. But that doesn’t mean it’s sensible for you to ignore it in favor of more fashionable and high return investments.
The earlier you start your first retirement fund, the longer the fund will have to grow, and the more security you’ll have when you reach retirement age.
Set aside a small percentage of your cash for a lump sum into your retirement fund.
Add Value to Existing Assets
Are you a homeowner? Then as you already own an excellent asset, it might be wise to continue to invest in it with your cash windfall.
You can extend or renovate your house, which will add value to your home in a hot market, and protect your property value in a depressed market. It’s a win-win.
For a practical way to spend your money, think about quick and easy renovations like this Coretec Flooring by US Floors.
A Windfall of Cash Is Only the Beginning
Don’t let a windfall of cash slip through your fingers with a few fast, impulsive purchases. Use these top investment tips to make that cash work for you in the long term.
If investing your cash in your home appeals to you, check out our home improvement section for plenty of great ideas.