An anticipated inheritance or an unexpected windfall, either or both are a life changing opportunity financially. It is imperative you make the most of this opportunity to stabilise and augment your financial status. Here are a few ways you can financially plan to invest the inheritance and maximise its potential.

• Deposit the cash – Place the money into a bank account until you decide what or how you want to invest it. This way you will have time to think on how to go about investing the money. Don’t rush the investment. Understand your financial standing, pen down your goals, analyse your situation and invest smartly. 

• Consult a Financial Advisor – If the inheritance is a substantial amount, it is advisable to engage a reliable and trusted financial advisor, who will guide you and your family with an unbiased view. The advisor will chart a roadmap on how best to invest the inheritance and grow it further to meet your goals.

• Cut down on your debt – You’ve got an opportunity to reduce or maybe altogether eliminate your debt. Start off by paying off high interest rate debts like credit card loans or personal loans. Then you can consider repaying your housing loan or vehicle loan. Having an expert guide you with a debt pay off strategy will ease the burden and doubt of taking the right path.

• Emergency Fund – Allot a portion  into your emergency fund, it is always good to have a considerable amount put aside for a contingency. Even though you may have an emergency fund running, there is no harm in sizing it up to brave non chartered storms.

• Retirement Fund – You can already be planning and investing for your retirement, with this additional fund, you can increase your investment and probably look at an early retirement. Financial independence and freedom are a step away.

• Short and Long term Goals – We all have short and long term goals planned and a portion of our income diverted towards fulfilling these goals. These can be any or all. Children’s education, marriage, buying a property, retirement corpus and vehicle to name a few.With an added fund in flow, increase the value of goal oriented investments to elevate attainment of these goals and eventually attain financial freedom.
• Donate – It is believed that by sharing what you have you will only multiply it. So share what you have received, in the form of a donation to a charity, a NGO or to someone whom the benefactor always donated.
• Spend on you – It is not always about saving! Remember – Donate, Save, Invest and Spend. Keep aside some money to spend on you and your family, for a holiday, buy something that was a luxury earlier. But only after you have saved and invested. Don’t let instant gratification blind your sense of reasoning.