If You Aren’t Sure What to Do With Inheritance Money, Start Here
At one point or another, many people wonder what to do with inheritance money.
When a windfall arrives, it can be easy to make impulsive decisions that don’t help you reach your financial goals. But, what should you do with an unexpected inheritance? What actions can you take to better position yourself – and your family – for the future?
According to the Washington Post, 1 in 5 families received an inheritance as of 2022. So, even though it may not be the case for every family, it pays to be prepared. It pays to have a plan in place. In today’s post, we’re going to discuss what you should – and shouldn’t – do when you receive an unexpected inheritance.
Don’t make impulsive, knee-jerk decisions
First and foremost: don’t rush to spend it. You’ve lived your entire life without this windfall. You can afford to consider your options for a few weeks. You can take time to build a plan and find a way to manage it responsibly. While it’s certainly tempting to buy yourself a new car, remodel your kitchen, or take a lavish vacation… it’s not advised.
Find a nice, safe place to park your money while you consider your options. While it may not be exciting, your bank likely offers a nice, high-yield savings account that will suffice for the time being.
Carefully examine your current financial status
With your money parked, it’s time to take stock of your situation. In the United States, the average household carries over $100,000 in debt and $6,300 in credit card debt. If you have high-interest debt – credit cards, personal loans, student debt, or payday loans – now’s the time to pay them off. You can think of your inheritance as a way to reset poor financial decisions and get your family back on good footing.
Ask an expert what to do with inheritance money
Now that you’ve taken a long, hard look at your financial situation, it’s time to sit down with an expert. A financial advisor can work with you to determine what to do with inheritance money. They can look at your current situation, discuss your goals, and build a roadmap to ensure that you’re on the right path.
Even if you consider yourself to be financially responsible, a large inheritance can throw a wrench into the equation. You’ll want to be certain that you understand tax obligations, investing options, and property laws. By consulting the experts, you can be confident that you’re making financially sound decisions.
Are you ready to get started?
If you’re eager to begin your financial journey, the team at Wiser Financial group is here to help.
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