I will be getting a bout $30,000 - $40,000 soon and am not sure what to do with it.?

I have $100,000 left on my home loan, I am in need of a new vehicle, I have a few small debts to pay off, and there are minor renovations I need done to my house. I don't know which way to go with the money. My Dad is struggling right now so I will for sure help him out as much as I can, but other than that what should I do with it. I was also interested in starting my own tanning salon and that could buy a few of the beds, and would help me out financially in the long run. I am so stressed and confused as to what to do. Any ideas?
Additional Details
My mother has serious health problems and can't work, so my dad works 3 jobs trying to pay medical bills, and owes the IRS money for the business that he lost. Nothing has ever been easy for him and he is a very hard worker. I just really feel sorry for him to have to struggle. I'm not sure how much my money could help him, but don't know what to do.

I'd run it by Crown Financial at: heyhoward@crown.org. They take this type of questions all the time. It will probably take a week or so, but they'll answer you.

I was an unfortunate passenger in an automotive accident a few years back... Long story short I ended up receiving a very nice settlement from the insurance companies.

When I got the money I did something I always wanted to do. I went out and bought my parents a new car, then I went to the bank, and paid off their entire mortgage. All-told I ended up giving them half of all the money I received.

It was such a good feeling to be able to take care of the people that took care of me all my life. Without a doubt, that was one of the best days of my life!

If you can, you might want to think about investing some of it. Let it work for you!

I wish you the best of luck figuring out what to do... The best advice I can give you.... Let your heart guide you to do whatever is right.

I would get the vehicle and pay off the small debts

I would open my own business, if it succeeds you'll always have money comin' in, so it's not like your losin' out with the money! Good Luck!

Use the remaining money as down payments on as many rental properties as your credit will allow. Rent them out, let the renters pay for your property and use the rest as income.

NO RUSH. It's not going to disappear. Don't pressure yourself into spending it wisely or otherwise.

Get rid of the small debts and think...

See how much a small tanning salon would cost for start up - work on a solid business plan. Make sure it's so well done that a bank would consider lending you money - otherwise, you aren't ready to be a business owner.

Take a serious look at what your Dad needs...I say this because if your Dad is in financial trouble because of bad financial management, if you pay off his bills (for example) it's just another bill he can rack up again. If he's in hot water through no fault of his own, of course you should help him out. I would recommend this for any loved one who you may want to help out.

Drive your current vehicle until it dies - why not?

Minor renovations if these are needed because of a problem, like leaky roof - that's something you need to fix now. If it's new carpet. No rush!

I would do multiple things with the money. First, use as much as you need to help your dad. Then, divide up the rest evenly among your home loan, renovations, new vehicle, and savings.

I would make a list of things that I'd like to do with the money and then I'd look over the list and decide on the most important things that need to be done first. Also make sure that you help your Dad out, too.

I agree with the answer above.

I'm a professional money manager and my father is a CPA/Attorney with 25+ years in finance. I recommend you find a competent CPA to advise you.

The general rule is, if you didn't earn it, you'll spend/lose it all within 2-3 years. If you don't want that to be you, I recommend seeking professional coaching in the form of a CPA or attorney.

I recommend strongly against paying down your home debt. If you only knew how many people inherit money, pay down their house part way, and then lose it into foreclosure, it would amaze you.

Without knowing the specifics, I would recommend against helping your father much, unless he's very financially intelligent. If he's not, you're simply throwing your money away to "help" him. In my experience, people who do that regret it later when they realize they were trying to help someone they loved, but that person simply recreated the problem later (ie, same the financial problem or worse)(after all, it was their behavior that generally there in the first place).

Avoid getting a new car. There is nothing on the planet that depreciates faster. I own a 1988 Camry. It's not what you drive that is important. It's the fact I could take off work for 5+ years if I wanted to. Protect your money. I would suspect that 30-40k would provide you a lot of job safety.

Unless you have business experience, I would recommend against trying to start a business. For people who love to cook, they say the last thing you need to know when running a restaurant is how to cook. The first is about leases, taxes, employee turnover, supplier contracts, accounting, etc. 75-80% of businesses fail. Which means they lose ALL of their money, and frequently the owners burn themselves out. It takes a very specific, self motivated, disciplined, go-getter to have a chance at succeeding. Unless you have a burning desire to be an entreprenuer, you should avoid that path. (said differently, if you were rolling a dice and you were betting your 40k, and the odds are 80% chance of losing all of your 40k and a 20% chance of keeping or growing it, would you do it?)

You sound like a nice, kind hearted person. You sound well-intentioned, and lost, but intelligent enough to ask for help. Because you haven't earned the money, it's important to realize people in your position generally lose it. It's not "bad" it's just how it is. If you want to not only keep the money, but grow it, you should consider discussing your options with someone who specializes in money: a CPA or financial advisor.

If you want to email me specifics (do you have a retirement account? amounts of debts, interest rates of those debts, etc), I will offer specific recommendations.

Good luck,

Jared

I agree with the tanning business.You could set aside a part of the profits to help your dad and start your own retirement fund too

Forget the tanning salon. Do you know how many small businesses fail? Pay off your small debts, do absolutely needed renovations, get a reasonably priced vehicle and help out pops as much as you can. Relax, you have more than a lot of people.

You might look into this online investment program that combines simple games and multiple investment methods. It even let's you open an off-shore account that comes
with a debit card.

One of the investment programs could yield 10,000 euros in one year for a small investment of 150 usd. So, it will take care of your future financial needs.

This is a real investment company. You can join for free and check it out.

For details and guidance please contact chief_invest@yahoo.com

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