If you’re one of the lucky people who have recently come into some money, you may be wondering what to do with it. NSW is full of opportunities for spending your windfall. In this guide, we will discuss a few ideas to spend a windfall in NSW. Whether you want to spend it or invest sensibly, we have something for everyone.
Of course, the option you choose will depend on your motivations and the amount of money you have to spend.
Invest in a Rental Property
If you’re looking to invest your money in something that will provide you with an ongoing income, then investing in a rental property is an excellent option. There are plenty of areas in NSW where you can find a property to suit your budget and needs.
Not only will you be generating income from rent, but you’ll also be able to reap the capital gains when you eventually sell the property. Depending on how much you gained, you may be able to buy a couple of apartments and live off this income rather than working full-time. Alternatively, you might reduce your hours at work because of the new rental income.
Pay Off Your Mortgage
Once the mortgage is paid off, you’ll have much more disposable income each month. You could use this to renovate your home, travel more, or simply save for a rainy day. If you’ve been wanting to get your home loan down to a more manageable level, then using a lump sum of money to make a big dent in the principal is the ideal solution.
Start Saving For Retirement
If you’re not already saving for retirement, now is the time to start. A lump sum of money can be used to open a retirement account or boost your existing balance. The sooner you start saving, the more time your money has to grow. It’s easy to think of retirement as something for the future, but the sooner you start saving, the better off you’ll be. Otherwise, you’ll have to catch up without the benefit of many years to earn interest.
Start a Business
If you’ve always dreamed of starting your own business, a windfall can give you the seed money you need. Of course, there are risks involved in any new venture, but with careful planning and a solid business plan, you can increase your chances of success. While some people use skills they already have – for example, a personal trainer looking for gyms for sale in NSW – others learn new skills and change their careers entirely.
Donate to Charity
There are many worthy causes out there, and a windfall is a perfect opportunity to support the ones you care about. Not only will you be helping others, but you’ll also get a tax deduction. If you’re not sure where to start, you can search for charities online or speak to a financial advisor. If you’re worried that you will waste a large portion of the money, this ensures that at least some of it will go to a good cause.
Enjoy an Easier Lifestyle
You don’t need to do something huge right now to enjoy your windfall; you could simply use it to make your life easier in small ways. For example, you could pay off debt, buy a new car, put money into home renovations, or go on a luxurious vacation. These are all things that will make your life easier and more enjoyable in the short term. Failing this, you could just reduce your working hours a little and make the money last.
Which route will you choose?