If you’ve just received some settlement money, you may be wondering what steps to take next. It’s not strange to feel anxious at this time, especially if it’s a large amount. Apart from starting a business, the following are five smart ways in which you can spend the money you get for a personal injury settlement that is smart and actionable.
1. Pay Off Debt
If you have any debt, you should take advantage of the funds you received to settle it. Even paying off a portion of it will make financial sense because you will reduce your future burden. Once you pay off some or all of your debt, you can continue working towards improving your future finances and making savings as well as investments, secure in the knowledge that there’s no debt looming over your head. Since the settlement amount is money that you otherwise didn’t have, don’t feel as if you’re making a bad call by paying off your debt with it since this is something you would have needed to do anyway.
2. Set Up An Emergency Fund
Something else that you can do with the money you get from your settlement is to set up an emergency fund. This is money that will benefit you immensely if something unexpected happens, such as an injury, an illness, or other disasters. You will receive your settlement depending on a few details, such as which type of damages you chose to pursue. If you chose economic over non-economic, you will receive the money your settlement was worth and so you can make plans for the funds you get.
3. Further Your Education
While you can pay fees to fund your children’s education, don’t forget about yourself. You could use the money you receive to further your own education and improve your skills and worth. This is an important thing to do in an ever-evolving job market as it can enable you to grow your career. You could even switch to another field in which you have an interest as long as it’s marketable and you know that you will be able to make good money in it. An example of a field to consider getting into if you’re not already in it is the electricity sector, which generates over 450 billion every single year.
4. Bolster Your Retirement Savings
If you don’t have a retirement savings plan in place, start one with your settlement. If you do have one, give it a boost with the money that you receive from your settlement. This can enable you to put the savings in a higher-yielding account and enjoy growing your money faster over time. Once you have secure savings account with a tidy sum in it, you can venture into different investments, including starting a business in an area you’re comfortable with. This way, you will have secured your future and will have an easy time going about your day-to-day activities.
5. Improve Your Home
Finally, use your settlement money to improve your home and boost its value. If there are fixes and upgrades that you’ve been putting off, this is the time to get them out of the way. Make sure to start with those that will give you the best return on your investment and this will be a sound financial investment to make in your home. Heat exchangers, which manufacturers suggest should get cleaned at least once every five years, and other appliances around your home can all use an upgrade or servicing.
These five ideas are some smart ways in which you can spend your personal injury settlement money. Have a look at them before you make any impulsive decisions that you may regret in the future.