When you come into a sum of money, you might wish to spend some of that cash on home improvements, buying a new car, or some other way of enhancing or improving your life. But, you’ll likely want to hang on to most of the money and make it grow in the future.

It’s no secret there are many ways to invest money, irrespective of the amount. The challenge is working out how you should be investing it. If you’re recently received an inheritance from a relative or friend, here are some ways to make that money work for you:

Tax-Free Savings

It makes sense to put some of your inheritance money into a tax-free savings account. Doing so means you will earn interest on the money, but you won’t need to pay any tax on that interest.

Most people have a tax-free savings allowance, so it’s worth checking how much yours is and making the most of it. You’ll usually have a choice of tax-free savings accounts, so choose the one that offers the most interest.

Property

If you’ve inherited a substantial sum of money, and you want to invest your money into a proven investment vehicle, one of the best options open to you is property. Of course, property investment isn’t without risk, so you should bear that fact in mind.

However, if you do plenty of research and negotiate hard on properties for sale (as you’ll be a cash buyer), you could potentially make a comfortable profit on your investment.

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Land

What happens if you don’t have enough cash to buy a property? The next best thing is to consider buying land for sale. It might seem like an unlikely investment idea, but purchasing land offers plenty of advantages for first-time investors.

For example, you don’t need to do anything with land like maintain it or worry about people stealing anything off it. Plus, land is considerably cheaper to buy than property, meaning you could buy several parcels of land.

Also, land doesn’t depreciate in value. You could just keep the land you buy for a while and sell it to interested parties like property developers.

Company Shares

There are always opportunities to purchase shares in companies. Share prices differ wildly; for example, the share prices for a startup firm could be worth 0.1% that of a company like Apple or Google.

Company shares are long-term investments, and they can also be incredibly risky ways of growing your inheritance. However, the trade-off is you can potentially profit from your investment several times more than your initial investments.

Before you buy any company shares, be sure to conduct due diligence on the business, the industry, and any factors that can impact them. For instance, Apple launching a well-received new smartphone could send share prices through the roof!

Conclusion

There’s always an element of risk when you invest money in anything. The way to succeed with investments is by doing plenty of research and listening to your gut instinct. The above examples are some of the most popular investment ideas.