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Finance

4 Options To Consider When Investing Your Inheritance

4 Options To Consider When Investing Your Inheritance

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The topic of inheritance is not always a pleasant one, but there are many circumstances where it makes sense to use inheritance as investment capital. Whether you’re working with a substantial sum of money or just enough to buy your first home, learning how to invest your inheritance can help create a profitable financial future for yourself and those you love.

1) Pay off debt

If the primary reason why you received your inheritance was that someone passed away, then the chances are good that they left their finances in shambles. Oftentimes, people will make out wills and leave behind instructions for loved ones to take care of outstanding debts or other financial responsibilities before dividing up the rest of the money; this isn’t always the case, but it’s a reasonably safe assumption to make. Therefore, your first step should be to pay off any and all outstanding debts that the deceased person had amassed. If you’re looking for more of an immediate return on your investment, you might consider tackling credit card debt.

2) Invest in yourself

If you have education or training pertinent to a specific type of work, such as graphic design or law, then you could use the money from your inheritance for furthering this education by attending college or completing more certification/training programs. Doing so immediately makes you a more valuable employee and can lead toward future promotions with better pay. The added income from these promotions could help increase the health of your overall portfolio in time for retirement or other long-term financial goals.

3) Invest in your home 

Well, there’s no need to get too literal here; you don’t necessarily need to purchase a new house(but if you can check out Compass for great options) or even invest in renovations, but rather use the money from your inheritance for making your current home more secure than it was before. If possible, replace older windows with newer models that are designed to help keep the heat inside during the winter and block unwanted sunlight during the summer. 

Another option is purchasing an upgraded security system, which can offer much better protection than just having locks on the doors when you’re at home alone at night or away for days at a time. You could also consider installing a greenhouse or garden space of some kind that broadens your options of what food items you know how to grow in your own backyard.

4) Take a trip

If you happen to have a little extra money burning a hole in your pocket, then why not take advantage of it by going on a vacation? Whether you’re interested in seeing the Eiffel Tower or Machu Picchu, there are always options for vacations that can provide experiences you’ll remember for the rest of your life. Of course, you could also use this money to travel domestically and see parts of our country that were previously outside your budget. In either case, the chances are good that this is one investment where all parties involved will come out with happy memories and new perspectives on their lives moving forward.  

There You Have It

So, whether you’re thinking about investing in real estate, starting a business, taking a trip, or just about anything in between, you have several options when it comes to making the most out of an unexpected financial windfall. Just be sure that you find licensed professionals who can help protect your best interests when it comes to any sort of investment so that you keep seeing returns for years after your inheritance hits your bank account!

Finance

4 Reasons To Avoid Credit Cards When You’re Skint

4 Reasons To Avoid Credit Cards When You're Skint

It’s nearing the end of the month and your bank balance is looking bare. It’s so low that you can’t afford a drink and a packet of peanuts in your local establishment. Yes, you’re officially skint.

People say they are broke and have no money, but they don’t mean it. Their balance might be low, but they’re in no danger of missing the rent or mortgage payments. However, you’re struggling and want to turn to your credit card to help you through.

It’s a bad idea for several reasons. Continue reading to learn more about them.

There’s No Buffer

Paying with a piece of plastic can be a wise move as it gives you breathing space before the full amount is due. But, when you’re boracic, you don’t experience the full benefit of credit since your funds usually run out at the end of the month. And, that’s when your credit card statement is due, too. By switching from a debit account to a credit account, all you do is increase the chances of missing payments, which leads to high-interest rates and more debt, as well as a low credit score. To use credit wisely, you must plan to get the breathing space you need.

The Limit Is Dangerous

A credit card has a maximum limit. In the UK, the average is between £3,000 and £4,000, which is very high. Not only is it large, but it’s dangerous as you might be tempted into spending more than you can pay back. At least you have the option to top-up your finances with small amounts that are more straightforward to clear with payday loans. After all, £50 is a lot simpler to manage than £150 or £200. Therefore, it could be healthier to consider other credit options instead of continually leaning on your credit card.

Creditors Are Flexible

Creditors have bad reputations. Most people assume they want their money at all costs, but this isn’t the case. They do want you to pay back the amount you owe, which is why they often set up payment plans for customers who struggle. From their perspective, they’re more likely to get their money back if the repayments are lower. From yours, it’s much easier to meet deadlines when the figures aren’t as big. Plus, agreeing to a payment plan provides peace of mind and stops you from stressing.

It Becomes The Norm

Once you do it and it doesn’t end in tears, you’ll continue to do it month after month. It might never be a problem, yet the odds are higher that you’ll fall foul of credit card companies sooner rather than later. Using credit cards means you don’t have a budget and find it tough to practise self-control. By cutting them out of your routine, you’ll be less likely to receive penalty notices. Also, you won’t see it as normal and should be able to drop the habit.

There are many reasons to avoid credit cards when you’re skint, but the main one is that there are alternatives.

Finance

Money under the mattress: finding funds from your home

Money under the mattress: finding funds from your home

Money under the mattress: finding funds from your home

In the modern world, most people have less than perfect finances. With the expense of living, jobs paying less than they used to, and housing being so pricey, it can be hard for people to get enough out of their salary. In this case, life is a challenge and will be very hard for you to manage. But, it doesn’t have to be this way. Instead, using your home, you can find ways to give yourself a good windfall, taking away some of the financial strain you feel. To help you out with this, this post will be going through some of the best ways to make money out of your home.

  • Giving Away A Slice

As the kids start to move out and space starts to open up in your home, the possibility of hosting a lodger becomes a reality. Of course, you won’t want this with young kids, so, for some, it might not work. Without a young child, though, having a young professional live in your home won’t impact your life that much at all. In most cases, lodgers will pay good rent for the place you give them, especially if you’re willing to provide food to them.

For people with young kids, the issues with hosting a lodger will probably be clear. Of course, though, this doesn’t mean that you can’t downsize. By moving to a smaller property, you can rent your current home to someone else. While they live there, the rent you pay will be covered by the rent you receive, leaving a little bit for you. This sort of action has to be taken very carefully, as it can be easy to lose if you’re not careful.

A lot of people will need a little bit of help to carry out action like this. Thankfully, in most cases, an estate agent is all you should need to be able to get started with something like this. They will be able to handle all of the paperwork while making the transaction nice and simple.

  • Using It As Collateral

In some cases, it can be better to keep the space you have and give away some of the equity from your home, instead. One of the best ways to do this is through home owner loans. This sort of option uses your house as a guarantee for the loan, making it easier for the banks to trust you. Along with this, this sort of loan is very easy to apply for, as you don’t have to go through the same vetting as a regular applicant.

Of course, though, in some cases, you will need a lot of money to be able to get on your feet. In this position, it can be worth sacrificing a large part of your home. A remortgage can achieve this for you, as long as you’re not too old to pay back what you owe before you leave work. A lot of people find this method extremely helpful, as it can be done very soon after taking the initial mortgage.

Making a decision like the ones above is never something which can be taken lightly. So, in most cases, it’s a good idea to get some help before you start. Your bank will be a good place to begin, as they will be able to provide you advice for free. For some, though, looking for professional help could be a better way to get the support you need.

  • A Clean Out

When bills are stretching the bank and you’re struggling to make ends meet, even a small boost could be enough to help you out. Though you may be attached to them, the unused items around your home could be plenty to fill your gap. You can start by looking for things of high-value which don’t get used very often. For example, an old music player or other electronic gadget. Then, you can start to look for some ways to sell it.

eBay and other auction websites can be the best to help you if you want to sell quite a few items, as they make it very easy to manage. Alongside this, though, you could also use a social media marketplace, like Facebook’s local sales tools. Using options like this will expand your reach and be much more effective than selling to customers in the flesh.

Hopefully, this post will give you a good idea of what can be done when you’re trying to find new ways to make money from your home. When you have a resource like this, you have a lot of potential behind you. To learn how to use it, you just have to do some research.

***Collaborative post***