3 strategies for spending your inheritance wisely

It's easy for Vancouver residents to feel like they're on top of the world after receiving a sizable inheritance. However, with a large influx of money comes a large influx of responsibility. It the individual plans to make the best use of his or her inheritance, the following tips could be helpful.

First, it is wise to take part of the inheritance and put it away for a rainy day. Saving at least six to 12 months worth of wages is the best idea for ensuring liquid money is available in the event of an emergency. That liquid money is very important for weathering difficult times, like the loss of a job or other negative financial results of a sudden economic downturn.

Second, paying down high-interest loans is another great idea. These loans usually include credit cards, car loans and other debts. However, saving sufficient money for an emergency in step number one above should always come before the debt paydown.

Third, invest extra money for the future by purchasing bonds, stocks and mutual funds. As an alternative, Vancouver residents might consider investing in the college educations of their children. This investment now could mean a huge difference in the level of financial affluence experienced by one's children in the years to come.

Knowing what to do with an inheritance might, at this point, be the secondary concern of many Vancouver residents. For would-be heirs who are struggling to secure the inheritance they are owed, a skilled estate lawyer could be helpful in navigating the legal complexities involved with asserting one's legal right to an inheritance in court.

Source: Business Insider, "Despite Good Intentions, Most People Wind Up Blowing Their Inheritance Anyway," accessed Aug. 05, 2016

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