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Five Things to Do with a Windfall Other Than Spend it Right Away

Perhaps you have won the lottery, received an inheritance, or cashed in one of your investments, and now you have a large sum of money you don’t know what to do with.

Although it is tempting to cruise around town in a brand new sports car it is important to think carefully about how to spend your newfound cash.

To give you some ideas on the smartest way to use your new wealth, here are five things to do with a windfall other than spend it right away:

1. Erase Your Debt

Your new found money will allow you to clear up all of your debts, which will lift a huge financial burden off your back and give you a lot of freedom. Start with the debts with the highest interest first, such as your credit card debts.

2. Create an Emergency Fund

Calculate how much money you would need to cover your living expenses for 6 months. Take this amount off your windfall and place it into a savings account. This money will be your fail safe. In case of an emergency, such as you hurt yourself, become ill, or lose your job, you will have enough money to live comfortably until times get better, without having to go into debt.

3. Invest in Your Home

If you spend your windfall on a renovation for your home, there is a good chance that you can increase your property value enough to make it more than worth it. Talk to estate agents in your area to determine which type of home improvement will increase your home’s value the most, but usually kitchens and bathrooms are the best rooms to update.

4. Buy a Vacation Property

Consider putting your newfound wealth into a holiday home overseas in a popular destination. You will be able to enjoy lounging on the beach there, and when you are not using it you can rent out the home to tourists to cover the costs. Later on in life when you want to retire, you will always have the option of moving there!

5. Live Off the Interest

If you won a million dollars in the lottery, you could spend it right away on a huge house and a car and then have nothing left. Or, you place it in an investment account and have it earn 6% annually. At this rate you would have approximately $5,000 per month or $60,000 per year without ever touching your initial sum. You could easily live off this amount and never have to work again.

These are a few ideas of what you could do with your money if you are lucky enough to receive an unexpected windfall.

Do you have any other ideas of how you could use your windfall?

Thinking About Selling Your Home Without A Real Estate Agent Dont Here is Why If you’re considering selling your home in the near future, you may be tempted to simply cut out the middleman and opt for an FSBO sale. However, selling a home is a major undertaking, and most “For Sale By Owner” home sales run into obstacles.

So why is an FSBO sale such a problem for most homeowners? Here are three reasons why you’ll want an agent to represent you instead of going it alone.

An FSBO Puts You At Risk Of A Lawsuit

Selling a home involves mountains of paperwork, and in order to make the transfer of ownership legal and above board, there is a large amount of minutiae that need to be considered. For instance, as a seller, you are legally obligated to disclose certain facts about the property: Some jurisdictions require you to disclose whether a death occurred in the home, for example, or if the home is located in a historical district.

Even one seemingly minor mistake could open you up to legal action. An experienced real estate agent already knows everything that needs to be disclosed, and although agents can make mistakes, they have errors and omissions insurance to protect them. Most homeowners don’t have that protection in place.

Buyers’ Agents May Discourage Buyers From Viewing Your Home

When it comes to FSBO deals, most buyers’ agents anticipate the deal being a challenge at best. Buyers’ agents typically only show FSBO properties in one of two cases: Either the price is extremely low or there aren’t any other homes available.

But according to Atlanta real estate agent Bruce Ailion, most experienced agents have had an FSBO transaction go poorly at some point and are now wary of them. Without a real estate agent to represent you, sellers’ agents will be hesitant to deal with you – and you won’t get as many offers on your home as you’d like.

You’ll Need To Discern Qualified Buyers From Dreamers

One thing that most homeowners don’t know is that not everyone who views your home is actively interested in buying it in the near future. Showing your home may mean taking time off work or away from activities you care about, and if the prospect doesn’t end up buying, you’ve wasted your time.

A real estate agent knows what questions to ask in order to weed out the merely curious and find motivated buyers, so you’ll sell your home much faster.

FSBO sales don’t always end in disaster, but they’re considerably difficult to do well. An experienced real estate agent can help you sell your home faster and for more money than you can on your own. Contact your local real estate professional today to learn more.