What To Do, And What Not To Do, With Your Gift/Graduation Money?

Gifting money is something common in many cultures and countries. It’s a gift that is often regarded as more considerate; as the receiver is not stuck with the gift giver’s otherwise choice of gifts. College graduates and newly married couples are two good examples for these happy gift’s receivers. Then there are other occasions, like the passing of a loved one or friend that may also result in us receiving such gifts. But regardless to whether it’s received for a happy reason, or a slightly less one; it’s important that we know how to make use of it without squandering it. Here are a few of our experts’ important dos and don’ts when it comes to what you can do with gift money…

Do consider doing…

• Saving it. Yes, that is cliché advise…but it’s cliché for a reason. Carefully think about who and what you are at the moment. Do you have a job with a long future? Is your income steady enough to help you retire early? Will saving this money for a “rainy day” help you later on? Will saving it for a retirement fund instead help you feel less stressed and give you enough space to breathe more freely?

• Invest it. This is a good idea even if you are a college goer. Most college goers now-a-days start their business right in their dorm rooms. In fact, some of our generation’s most popular billionaires started this way. Invest on your college mate’s business (investing as initial capital for it); through shares or stocks. If you have doubts regarding this, it’s always advisable to get the help of professionals before signing shareholder agreements Singapore.

• Use it. If you’re not interested in getting involved in someone else’s business, why don’t you start your own? Use the money to build your business, or at least, lay the foundation for it. If you’ve not worked in the business field before, or don’t have much experience regarding running your own business, it’s always a good idea to get the help of a commercial lawyer. Apart from this, you can also use this money to broaden your education and help you upgrade yourself to the better version of you.

Do avoid doing…

• Big commitments. Inheriting a substantial amount of money usually results in us committing to a big investments and commitments; such as houses and vehicle. While this might be a good idea for later on in life, if you are still a college goer, this is not a good idea. Ideally, it is best if you think about these after you settle into your intended job; as by then you will have a much clearer view on what is required from your vehicle and home.

• Making hasty decisions regarding it. After all, a big amount of money can spin anyone’s head a little. Instead, opt for waiting a bit. Take your time, and think things through…don’t worry about lost opportunities; life is full of them…!