Have you stumbled across a nice amount of cash? If so, why not think about how you could take full advantage of the new wealth to enhance your future?
Reportedly, ‘29% of Australians concede that they are expecting an inheritance and they intend to spend some or all of it’1. As appealing as that might sound, you may wish to maximise your windfall. If so, then here are a selection of ways to help.
Settle your debts
Anyone with debts will likely understand just how stressful they can be to manage. So rather than spending the cash on a holiday or a new car; why not use it to cover your debts instead? A financial adviser might even be able to offer advice and guidance on how to invest any extra cash to benefit your savings in the future.
Add to your emergency savings
Most people will strive to put aside some cash, just in case the worst should happen. If you ever lose your job, need to pay for medical bills, or find yourself requiring a new car when your old one breaks down – having access to a little extra money can be a huge advantage.
Set some money aside
If you’re prone to spending any available cash on impulse, you could always consider placing your extra funds into a savings account, or a dedicated deposit account. You could even talk to an adviser for help with getting the most out of any interest that you’re entitled to.
If your windfall was particularly large, then you might find yourself in a position to lighten someone else’s load by donating some of your cash. If you opt for a charity that can receive gifts that are tax-deductible, then you could even find yourself reaping the rewards when it comes to your tax return.
Add to your retirement
If you pay a little extra toward your superannuation, you could find yourself beefing up your retirement funds when it comes time to put your feet up. By making non-concessional contributions (for unemployed individuals), or dedicating a portion of your income toward your superannuation, you could find yourself enhancing your cash potential ready for your retirement.
Enjoy a little extra spending potential
For those of you that want to enjoy some of your cash here and now, there’s really no harm in doing so – especially with the guidance of a financial adviser. You could find yourself able to pay for a trip, buy a new asset, or anything in between.
To make sure that you make the most of your windfall, why not give us a call? You could find yourself spending, saving and enjoying your cash in ways that you’ve never even considered.
- Elsworth, S (2017) Australians are relying on an inheritance to buy a home and pay off debt. News.com.au https://www.news.com.au/finance/money/budgeting/australians-are-relying-on-an-inheritance-to-buy-a-home-and-pay-off-debt/news-story/a1cfe9f7db15722461525a93c5814268
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