Put your fi­nan­cial wind­fall to good use

Shepparton News - - FINANCE - SANDY MILLER RI Ad­vice Shep­par­ton wnan­cial ad­viser www.rishep­par­ton.com.au

Have you re­ceived a large sum of money?

There are smarter ways to use it than treat­ing your­self to a new lux­ury car or watch.

Wind­falls such as salary bonuses and in­her­i­tances are more com­mon than many peo­ple think.

An Aus­tralian sur­vey showed that 85 per cent of se­niors are likely to leave an in­her­i­tance for their chil­dren, with an es­ti­mated $3.3 tril­lion pledged.

While com­ing into a large sum of money seems a good op­por­tu­nity to build a se­cure Ånan­cial fu­ture, re­search has shown that on aver­age, peo­ple who re­ceive an in­her­i­tance spend about half of it.

So how can you avoid blow­ing your new-found wealth? Here are some smart ways:


To avoid the temp­ta­tion of spend­ing the money im­pul­sively, you could put it away tem­po­rar­ily in a de­posit ac­count or short-term in­vest­ment in­stru­ment.

If you leave the sum aside for one or two months, it will give you more time to plan or en­gage a pro­fes­sional Ånan­cial ad­viser to help you de­cide how to use the money wisely.


Us­ing your wind­fall to clear your debts can put you on a bet­ter Ånan­cial foot­ing.

Con­sider work­ing with your Ånan­cial ad­viser to cre­ate a bud­get that con­sid­ers all your debt obli­ga­tions, in­come and wind­fall.

This can also be a good chance to dis­cuss the op­por­tu­nity to in­vest and grow your money.


Build­ing up your emer­gency fund — or cre­at­ing one if you haven’t al­ready done so — can be an­other way to make good use of your money.

By in­creas­ing the fund to cover your ex­penses for six months, you may be bet­ter po­si­tioned to han­dle un­ex­pected events such as a job loss or un­fore­seen med­i­cal costs.


Mak­ing ex­tra con­tri­bu­tions to your superannuation may help you op­ti­mise your wind­fall.

Whether you make non-con­ces­sional con­tri­bu­tions or, if you are em­ployed, ar­range to have a por­tion of your pre-tax salary paid to your su­per, in­creas­ing your re­tire­ment sav­ings can help you se­cure your Ånan­cial fu­ture.


You may also take this op­por­tu­nity to build your sav­ings for some of your dreams, such as pur­su­ing higher ed­u­ca­tion or trav­el­ling to places on your bucket list.

But con­sider do­ing this only af­ter you’ve paid off your debts and built up your emer­gency fund.


Re­ceiv­ing a large wind­fall can be a chance to help oth­ers in need.

If the money came from a loved one, do­nat­ing some of it to char­ity may be a good way to hon­our their hard work to build that be­quest.

If you de­cide to give away some money, con­sider do­nat­ing it to an or­gan­i­sa­tion that’s en­ti­tled to re­ceive tax-de­ductible gifts, so you can claim a tax de­duc­tion.

Don’t for­get to keep records of your gifts to give to your ac­coun­tant at tax time.


Get­ting pro­fes­sional Ånan­cial ad­vice may help you op­ti­mise your wind­fall.

Your ad­viser can re­view your Ånances and work with you on a Ånan­cial plan based on your needs and pri­or­i­ties, to help you achieve your goals.

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