If you received a sum of cash on your big day, you can use it to jumpstart your life with your partner. Of course, you have a lot of options to choose from when deciding where that money’s going to go.
With that in mind, here are four smart ways to invest that nest egg and make your money work for you.
1. Fix Up the Old Homestead
Where will you and your partner live after you wed? If you haven’t bought a home yet, you’re smart to put your windfall toward a downpayment, as rent prices continue rising faster than incomes. If you do own a pad, consider investing your money in repairs that come with a strong return on investment (ROI) when you go to sell.
For example, replacing your entry door has a 74.9% ROI on average — it’s the first thing prospective buyers see, after all. Even if you don’t change it out, a fresh coat of paint with matching window trim can refresh your exterior.
Going inside? New kitchen appliances can save you considerable cash if your old ones lack the Energy Star rating.
2. Start a College Savings
Are you and your partner planning to have kids? The cost of a college education continues to rise — save your future children from student loan debt by opening a savings plan now.
Take advantage of 529 college savings plans that let you put aside tax-deferred money and withdraw it tax-free as long as you spend the money on qualified educational expenses. If you later don’t have children, you or your spouse can use the funds toward obtaining a degree.
3. Get Over Your Fear of Investing
If you still worry about investing in the stock market, why not use part of your wedding windfall to start small? Historically, your return will keep pace with inflation much better than the interest rates you reap from traditional savings accounts.
You’ll find no shortage of apps designed for small retail investors that put money management at your fingertips. However, if you still hesitate, why not invest in a mutual fund that diversifies your cash for you?
Why not use some of your wedding windfall to start a small business? If you work hard, you’ll have a reliable secondary income stream the next time a pandemic or other crisis causes mass uncertainty. Best of all, you keep the profits for yourself and decide if you want to expand, replace your day job or keep a pleasant side hustle.
Invest Your Nest Egg These 4 Smart Ways
If you got money for your wedding, put it to work for you. Choose one or more of these four smart ways to invest your nest egg.