I’ll admit it — I’m a little jealous. I, too, have always thought about what I could do with just a few thousand extra dollars. And now, here you are: staring at a check, afraid you’ll choose the wrong option.
But you need to deposit the check sooner rather than later. Otherwise, you’ll miss out on the power of compound interest. Let’s say you want to take some time to think about what to do with your windfall. If you put $30,000 in a high-yield savings account earning 1.9% APY (trust me, they exist), you’ll accrue an extra $570 in just one year.
Once you have the cash tucked away safely, it’s time to start thinking strategically. Consider meeting with a fee-only financial planner who can help you consider your long-term options. Look for a financial adviser who offers a la carte services or hourly rates, so you can focus on your most pressing issue: taking care of this new nest egg.
A financial planner won’t tell you how to spend your money, but they will help you figure out the best way to care for it while you’re deciding. If you choose to put that cash toward your retirement (which would be a very good option, I have to say), their recommendations will vary from their advice for planning a trip around the world or saving for a house.
Have you considered asking your grandparents if they have a preference for how you spend the money?
Years after my grandfather died, I learned that he had left money behind for each of his granddaughters’ weddings. My father passed it to me via a neatly written check, and I started chipping away at the total as I planned my wedding. When the engagement ended abruptly, I got most of my deposits back.
Then I was staring at that amount in my savings, and I was racked with guilt. I wasn’t getting married. I didn’t deserve this. But when I asked my father what to do with the money, we came to the agreement that I should put it toward my student loans. There was nothing fairy tale about making that payment, but it lifted a weight, and I knew it was a genuine family blessing.
You don’t need to feel guilty for receiving a generous gift. You may think you don’t need it because your finances are in order, but this gift gives you the opportunity to get ahead in a way that fits your goals and values. This is your chance to decide what you want and act with confidence. But you don’t have to figure it all out today.
Lisa Rowan is a personal finance expert and senior writer at The Penny Hoarder, and the voice behind Dear Penny. For more practical money tips, visit www.thepennyhoarder.com.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
The Penny Hoarder Promise: We provide accurate, reliable information. Here’s why you can trust us and how we make money.
source The Penny Hoarder https://ift.tt/2OZvFyW
ليست هناك تعليقات:
إرسال تعليق