The question what to do with a surplus cash is one of the most popular questions for all money managers and when a person gets a large sum of money usually the first thing that pops in their mind is how to spend that cash but then the rational mind kicks in and he/she start to think about ways how that money can be invested.


It does not matter how you got your hands on a large sum of money as there are endless possibilities starting from an inheritance to wining the lottery but what you do whit this money is much more crucial. First of all if you are reading this article then that means you don’t want to waste this money and want to do something important with it. And there are endless possibilities of thing that you can use that money for but here I will give you a list of some possibilities that you need to think about when making your own spending plan.

  1. Pension / retirement savings – First of all I usually tell my clients that if they got some spare money that they should think about putting it away in a retirement savings account because this money can grow with the help of compound interest and by the time that you are ready to start your retirement you will have a large “nest-egg” that you can use to travel the world and live comfortably.
  2. Savings for your offspring education – If you have kids that are younger than 18 or are just planning to have kids some day then a great way to invest that money is to create a savings account for their collage education. Usually parents make a savings account as soon as their kids are born and periodically deposit some money in that account but when you have gotten your hands on a larger amount of money you can kickstart a savings account and watch how it grows.
  3. Passive income / business – If you have the entrepreneurial spirit then this money can be a great way to finally start your own business and escape that 9 to 5 rat race. But if you don’t want to create your own business then maybe you can invest in property or stock market and get yearly returns from that money that are completely passive.
  4. Health – health is our most precious resource and that is why I usually also tell people to spend some money getting their health in order and doing some tests and examination to determine if everything in their body is working properly. If you have this spare cash you can use it to heal all your health problems that you have accumulated during the years as well as improve your diet or start exercising to live a much healthier and better quality life.
  5. Fun – And the last thing that also is very important is to have fun and buy some things that you have always wanted but did not have the funds for. You can take a trip, buy a motorcycle or do anything else that you have dreamed about just don’t use all the money for these purposes and set some aside for the first four items on this list.

I hope that these tips will help you understand that there are many things that you can improve with money but also understand that you need to have fun and enjoy your life.