by Susan Paige
Financial windfalls may not happen all that often, but when they do, they present an amazing opportunity. For individuals who are used to penny-pinching and sticking to a tight budget, a little extra cash can make a huge difference –– provided you know how to maximize your investments. With that in mind, today we’re going to share five savvy ways hard-working professionals can re-invest extra capital to ensure their financial standing well into the future. Check them out here:
Taking out loans, utilizing credit cards, and borrowing on your line of credit are all reasonable steps to pay bills and manage your finances. Still, it can be difficult to build credit if you’re constantly struggling to pay off debts. As such, it makes a lot of sense to use any extra money you may have to settle a few accounts and boost your credit. Don’t assume that because you have bad credit now, you’ll be saddled with bad credit in perpetuity. It actually doesn’t take that much time to rebuild a credit score.
Sometimes in order to move forward, you have to take a step back. Going back to school can offer professionals the opportunity to improve their position at their company or within their industry. Whether they’re simply looking to boost workplace productivity or cultivate new skills, professionals can benefit massively from investing in their own education. While it may not seem like the most exciting way to spend a surplus of cash, the value of solid education is priceless.
The Stock Market
Playing the stock market is an arduous task –– especially for beginners who lack the experience of managing multiple stock options. Still, by learning to avoid a few risky stocks and sticking to a well-conceived and balanced plan, professionals can turn a little extra dough into a substantial return. (Pro tip: diversify your stocks to prevent major losses.)
Don’t feel like playing the market? Then you can always consider purchasing certain items that tend to retain (or potentially appreciate) in value. Fine wines, jewelry, and classic cars are all high-quality purchases that are generally less risky investments (if maintained) than investing in stocks on your own.
Set it Aside
Remember, there’s nothing wrong with simply tucking away extra funds in the bank for a rainy day. You’ll still be able to gain interest on your investment, plus you can draw out extra cash whenever you need it most. It may seem obvious (and a little boring), but it’s still a great decision to put your money in the bank!