I’m coming into about 250k in a couple months from an inheritance. It’s currently in stocks, bonds, REITs. It doubles roughly 7 years, so I’m told by my financial advisor. I could take it out in cash or leave it there for it to slowly grow.
My situation right now is rough. I’m living in a small apartment, can barely pay rent, my electricity just got shut off a couple days ago, my car note is 4 months behind. I work a dead end job and I’m broke as hell.
I want to use my inheritance to help me out of this rut. Not to spend it all on useless crap but either a home, or a business (PASSIVE preferably). I don’t have many business skill sets or anything like that. If I could make money online that would also be great. Not sure where to go
How do I begin with my little experience? It takes money to make money right? And I have that shortly so… what would you do?
First, do not buy a business, especially one that advertises itself as passive. A lot of these are known scams and without the business acumen to analyze the businesses, you will almost certainly be separated from your money.
Second, I think what would be best is to Improve your long term prospects, and focus less on your immediate needs.
I know this is easier said than done, but based on your post it sounds like you are at a crossroads in your life. If you play your cards right, you could be in a great position 10 years from now. If you folly, you could be in the same spot in 10 years time with the only difference being you feel a lot worse about it since you had the chance to get out.
As far as how you go about improving your position, the high level advice is to increase your earning power. That could mean going to college and getting a degree, going to trade school and doing an apprenticeship, or any other manner of increasing your skill set. It’s hard to give specific advice without knowing you. I went to college and got a degree in accounting. Took 5 years to get a degree and 3 years work experience, but I broke 6 figures in earnings and have made more every year since.
The other piece of advice I can give you is to avoid touching this money unless it’s absolutely necessary. If your money is doubling every 7 years, you’re likely earning around 10%. You DO NOT want to take the money out of that pool and spend it on something that earns less than 10%. Paying off credit card debt at 22%? Makes sense IF you cut up the cards and never make another charge. Paying off a car loan at 7%? Bad move. Paying tuition, when student loans are at 8%? Bad move. The TLDR is let that money grow. Even if it’s hard, you will be WAY better off for doing so. One big exception is to avoid bankruptcy. I’d pay off a 6% personal loan if the creditor was threatening to sue and my only other choice was going bankrupt.
Best of luck man! Let me know if there’s anything I can do to help! I know times are tough, but you are actually in a great position. Just takes some time and tactics to get where you want to be.