Did you know that over 40% of Americans don’t have enough savings to cover a $400 emergency? And while this may come as a surprise to you, it’s clear that Americans may be failing at financial prioritization.
Let’s take a cash settlement for example. While it may be tempting to spend this large sum of money on a new wardrobe, you may want to look further into investing it and managing it well.
Did you recently acquire a settlement for your personal injury case and don’t know how to invest it? Here are some tips on how to invest a large sum of money.
Pay Off Debt and Save
One of the first things you want to do when you receive a large sum of money is to save it! Don’t make the mistake that over 40% of American have. As a general rule of thumb, it’s suggested that you save anywhere from 10% – 15% of your gross salary.
In addition, consider paying off any high-interest loans and credit card debt with your settlement. This will not only save you money in the long run but will cut out the excess interest that you may be paying.
Donate to a Charity
Another investment you may want to consider is donating to a charity. And while you may be doing this as a feel-good gesture, keep in mind that charities are tax-deductible.
In addition, be sure to ask a trusted financial advisor about how you’re able to use your structured settlement towards a charitable trust.
Invest in a Business
It’s no secret. One of the best things you can do if you have acquired a large sum of money is to invest in a business. Seek out a trusted financial advisor that will help you sell structured settlements and place your bucks in the right place.
If done right, the money invested in the business can multiply in 5 years and turn into a residual income. With this money, you are not only able to save for retirement, but also invest in other business that will expand your income.
Invest in Education
Lastly, you may want to look into investing your large sum of money into education. While many are taking out loans in order to further their education, build your financial stability by investing in it! Not only will it be worth it, but fulfilling as well.
Learn to Invest a Large Sum of Money and More!
Whether you’re looking to learn more about investing a large sum of money or want to learn more about your finances, we’re here to help. Investing has officially become the way of the future. And with a little help, you will be able to provide a stable financial future for you and your family.
Need more information on finance and money? Check out the rest of our blog for more tips and tricks.