###Investing 90k Wisely: A Personal Finance Guide
Are you wondering what to do with a windfall of 90k? Whether it’s from a personal injury settlement, inheritance, or bonus, having a substantial amount of money can be both exciting and overwhelming. With careful planning and smart decisions, you can make this money work for you in the long term. Here are some ideas on how to invest 90k wisely:
#####Evaluate Your Financial Situation
Before diving into any investment, it’s crucial to assess your current financial picture. Take into consideration your existing debts, income, expenses, and financial goals. In your case, having 13k in car debt and 5k on a credit card should be a priority to pay off to avoid high-interest charges.
#####Real Estate Investment in LA
Considering your interest in owning property and renting it out, investing in real estate in LA can indeed be a lucrative venture. However, keep in mind that it will require a significant portion of your 90k. Research the housing market in LA, calculate potential rental income, and weigh the pros and cons before making a decision.
#####Diversify Your Investments
While real estate can be a solid investment, it’s essential to diversify your portfolio to mitigate risk. Think about allocating a portion of your 90k towards ETFs, long-term stocks, or other investment vehicles. This will help you spread out your risk and potentially earn higher returns over time.
#####Consider Tax Implications
Before making any investment, consider the tax implications that come with it. Consult with a financial advisor to understand how different investment options may impact your taxes and how to optimize your returns while minimizing tax liabilities.
#####Future Income Stream
Given your high annual income and the option to work in NYC, think about how this 90k can help you generate additional income streams. Investing in rental properties, dividend-paying stocks, or other passive income opportunities can provide a steady cash flow and build your wealth over time.
#####Final Thoughts
In conclusion, receiving 90k can be a fantastic opportunity to secure your financial future and achieve your long-term goals. By carefully evaluating your financial situation, diversifying your investments, and considering all options, you can make the most out of this windfall. Remember to seek professional advice and do thorough research before making any financial decisions. Cheers to your financial success! 🌟💸
Step 1: Pay off credit card debts.
Step 2: Calculate 4-6 months’ expenses, and make sure that amount of cash is in a checking or saving account.
Step 3: I would invest in more ETFs instead of real estate, especially when you won’t be around much to manage it, but at this stage it gets a bit complicated and you can do more research.
If your credit card and car loan debt are higher than 5%, I’d pay those off first. I can’t speak for renting as I would never want to be a landlord. Assuming you rent now, do you want to own one day?
Pay off high-interest debt first, then allocate to investments and savings goals.
With $90k, consider paying off your car and credit card debt first to free up cash flow
Bro, get rid of your debt dude.
1. If you make $110-130k , there’s no excuse why you should be having any outstanding credit card debt. You are bending over and paying credit cards 25+% in finance charges. Pay off your credit card bro, like yesterday. And after you do that, put your credit card in a plastic jar filled with water and stick that in the freezer so you don’t use it for at least 1-2 years until you learn what a terrible idea it is to have an outstanding balance on your credit card that is unpaid fully when you get the statement. You need to learn some self discipline here or you will BURN through that $90k injury award so fast, and then probably more.
2. Pay off your car loan, bro. Nothing like having a car without a loan. Keep your car. Hopefully it’s a toyota or honda that will last for 20 years. Don’t get a new car for a long long time.
3. No offense, but you can’t afford a place in LA unless you find a place in the bad parts of town.
4. Put the rest into a investment brokerage account and buy VTI index ETF and forget the money even exists.
5. Go get yourself a debit card and make sure you disable any credit card feature on your debit card where it could be used to buy things above what you have in the bank.
6.Learn how to spend and challenge your every month to have money left over and move that money into your brokerage account to invest more into VTI.
Rinse and repeat #6 over and over again.