If you’re about to sell your home and are anticipating that you’ll be making a lot of profit from the sale, you might be both excited and nervous about what you should do with that money. While you may want to treat yourself by blowing some of it on something fun, if you’re really wanting to be smart, there are a few things that you should prioritize first.
To help you see just what these things are, here are three smart things you can do with the profits from selling your home.
Buy More Property
After selling your home, you’re also selling the property that you were living in. If you have other plans for where to live, you may not need the money from the sale to go toward these expenses. But if you’re planning on buying another home to live in, taking some of the profit from the sale and putting it toward your new home is a great idea.
Additionally, if you don’t need to put that money toward the down payment or cost of another home for you, you can also look into buying property that you use for investment purposes. Whether you choose to buy another house that you’ll rent out or invest in commercial real estate, taking the money from the sale of your home and buying something that will continue to make you money into the future is a great idea.
Consider A Money Market Mutual Fund
If you’re not wanting to spend the money you’ve made from the sale of your home just yet, it’s wise to park that money in the right account until you are ready to use it.
One of the best ways to hold onto this money is to put it in a money market mutual fund. With this type of account, you’ll be able to make some decent interest off of the money you put into without having to wait a certain amount of time to pull the money out. This way, when you are ready to spend your profit on something, you’ll be able to have immediate access to it while also having to work for you until you’re ready.
Pay Down Some Debt
For those who aren’t worrying about paying down a mortgage anymore, using the money you made off of the sale of your home to pay down other debts could be a great idea. Especially if you have some debts that are pretty large or have a high interest rate, paying off those balances now could help you be in an overall better financial place.
If you’re going to be making some good money off of the sale of your home and aren’t sure what to do with it, consider using the tips mentioned above to help you make the best financial decision.