Making the Most of Large Sums of Money
Think Before You Act
While you’re figuring out what you’ll do with the money, you might want to put it in an account that will earn you money. That way, your money will be growing and you won’t be tempted to overspend before you work out a plan.
What About Taxes?
While your money is safely tucked away, find out whether you’ll owe taxes, so you can plan with the right amount.
Decide on Your Goals
This is the fun part. Now you can start planning for how you’ll use your extra money. Your options are simple: save it, invest it, spend it or a combination of all 3.
Save It
If you’ve decided to save, think about short-term and long-term goals you’d like to achieve. Short-term goals are things like a once-in-a-lifetime vacation, a down payment on a house or setting aside an emergency fund. Long-term goals are things like funding retirement or investing in your kids’ education. Some great saving and certificate options are available to help you reach your goals sooner.
Invest It
Investing is a good way to build your wealth. You have a number of ways to get started. Financial advisors can help you build a diversified portfolio and give you advice. There are also online investing tools that will pick investments for you, depending on your goals and risk tolerance, and others that will allow you to pick your investments and track your progress.
Spend It
You can also set aside some of your money to have fun or to make things easier. Give yourself a budget for fun money, to pay down (or pay off) debt, to make home improvements or to give gifts.
