After inheriting money, some people make a beeline to the mall and go on a shopping spree. Others use money to take a fabulous vacation, and some quit their jobs and live off the inheritance, depending on how much they receive. But while there are plenty of options for this money, you owe it to yourself to make the best of your newfound fortune. There are seven possible ways to improve your life when you inherit money.
1. Take Care of Your Physical Health
Sadly, some people don't have health insurance and they postpone necessary medical care because they can't afford treatment. Inheriting money provides an opportunity to take care of your physical health. You can schedule a physical, a dental appointment or address any other issues you've been putting off. And if you couldn't afford health insurance before, now's the time to look into policies.
2. Pay off Debt
Whether you receive a huge or a small inheritance, use some of the money to pay off debt. This includes credit card debt, student loans, auto loans, personal loans and perhaps your mortgage loan. If you own your belongings outright, nobody can take them away from you. You'll have peace of mind and lower monthly expenses
3. Go Back to School
If you feel you're getting nowhere at work or if you need a career change, use your newfound fortune to invest in yourself and return to school. You can get a degree, take a few classes, or attend seminars and workshops. Or if you're tired of slaving for someone else, use the inheritance as seed money for your own business.
4. Get Therapy
Therapy might not be an ideal use for inherited money, but if you're dealing with emotional baggage, speaking with a therapist can help you sort through your feelings and let go of the past. You might understand why you act a certain way, and once you learn tools to move past anger and pain, you can improve your outlook on life.
5. Explore Your Passions
Sometimes, the jobs we prefer don't pay the most money. So we ignore our passions and seek jobs that allow us to make ends meet. If you inherit a sizable sum, you can leave your job and choose employment that match your talents and passions -- regardless of how much the job pays.
6. Give to Charity
There is more happiness in giving than receiving. So while it's important to invest in yourself and make smart decisions with your money, you should also give a percentage to your favorite charity or give back to your local community.
7. Buy Life Insurance
If you receive a small inheritance, consider buying life insurance to protect your family in the event of your death. Knowing that your family has income to maintain their lifestyle can bring you peace of mind and comfort. There are no rules regarding how much life insurance to purchase, but some money experts recommend a policy that's eight or 10 times your annual income.
If money falls in your lap, it's important that you make smart decisions with this cash. Not everyone is fortunate enough to have this opportunity, so you need to put the cash to good use. What are other ways to improve your life after getting an inheritance?