Let’s say you come into a sizeable lump sum of money and you’re wondering what to do with it. Maybe you got a larger tax refund than you expected or you got a bonus at work. Either way you’re trying to be responsible with your newfound money. Well here are a few ideas:

1. Pay down/off credit card debt. It’s very boring, I know, but in the long run you can save a ton on interest payments by paying down your debt. Let’s say you have $3000 and you’re deciding whether to put that money in a savings account earning 1% interest annually or to pay down a credit card that is charging you 22% interest annually. It makes more sense to pay down the credit card because your savings account is not earning you enough to cover the amount that your credit card company is charging you.
2. Invest in the stock market. We talked about this previously and how it can be a great way to get a return on your investment. Make your money work for you.
3. Buy real estate. Owning real estate is a major wealth generator and if you buy smart you’ll ensure that you have some wealth to pass down to your children and grandchildren. We will cover this topic more in the future so keep posted.
4. Invest in a business. Do you have a great business idea that you’ve been sitting on and never really pursued it? Then now is your time. Maybe you know of someone who you strongly believe in who has a great business idea and plan but needs some funding. Partner up with them. Notice I said “who you strongly believe in who has a great business idea and plan“. This is key because money can break up friendships and relationships quickly so be careful here if it is someone you’re not sure of or don’t really believe in.
5. You’re not interested in a risky investment? That’s fine. Put it in a savings bond or CD.

I know these options might not seem as appealing as a trip to Cancun or a shopping spree at your favorite store but if you invest your money wisely, you’ll soon be able to do those things whenever you wish.

So what would/will you do with your newfound money?