If you have recently sold a home, you’ve most likely received a large chunk of change in your bank account or will be expecting to. With a large influx of cash, you may be intrigued to spend it quickly, but we’re here to offer you some financially sound decisions on how to best utilize this cash.
Setting aside money for unexpected emergencies is never a bad idea. Try to place 3 to 6 months of salary aside for an emergency fund. You will be thankful in the future if you come across being laid off from your job or receiving a large expense you were not expecting.
Pay Off Debt
While this option may or may not be the most exciting, it’s a wise one. If you have credit cards, medical bills, or loans such as for a new car or college expenses, paying these off can help you take a step in the direction of financial stability.
Depending on how you are currently paying on your loans, you may never see an actual decrease in your total amount due to the high-interest rates they may hold. With this influx in money, choosing to pay off large amounts of debt can prevent you from a low credit score and difficulty obtaining a future loan due to the repercussions of the current loans you have.
Choosing to invest in yourself by obtaining a further education will never lose value. Whether you are interested in a class on how to play the guitar or obtaining a college degree of your interests to further your career goals, both can add value to your life.
Now may be the perfect opportunity to go on that excursion to another country that you have always dreamt of. It’s not everyday that you come across a large amount of money so if going to France to see the Eiffel Tower or riding an elephant in Africa is what you had in mind, now sounds like the best time to do just that.
While you may not come across a large amount of money on one given day often, it doesn’t mean you can’t. Consider investing this money into the stock market or perhaps on buying another property. Investing in an income property that provides you with immediate income through rentals while also growing equity in the property over time can be a great place to start.
If you have been considering selling your home, you’ve probably been asking yourself, “What is my home worth?” Calculate your estimated home sale proceeds or get a free estimate to have a better idea of how much money you can earn by selling your home now.