this post was submitted on 14 Nov 2023
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I’m coming into about 250k in a couple months from an inheritance. It’s currently in stocks, bonds, REITs. It doubles roughly 7 years, so I’m told by my financial advisor. I could take it out in cash or leave it there for it to slowly grow.

My situation right now is rough. I’m living in a small apartment, can barely pay rent, my electricity just got shut off a couple days ago, my car note is 4 months behind. I work a dead end job and I’m broke as hell.

I want to use my inheritance to help me out of this rut. Not to spend it all on useless crap but either a home, or a business (PASSIVE preferably). I don’t have many business skill sets or anything like that. If I could make money online that would also be great. Not sure where to go

How do I begin with my little experience? It takes money to make money right? And I have that shortly so… what would you do?

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[–] Whole-Spiritual@alien.top 1 points 1 year ago

What are your best skills?

[–] bunnyswipedotcom@alien.top 1 points 1 year ago

I'd say you should suck it up and suffer.

[–] Rcontrerr2@alien.top 1 points 1 year ago (1 children)

Bro, books are free at a library, before you spend money on a business venture you may not understand check out some staple business books. Educate yourself while your money grows until you’re ready to do something with it. But you also have to survive first.

List some books you recommend

[–] ExtremeThrifty@alien.top 1 points 1 year ago

Treat that 250k as invisible, draw out some for expenses I would say 10-20k, until you are fully ready to weld that money. It can be a double edge sword. With the right skills and resources, you can 10x this in years. If trapped onto the wrong mindset(not saying you are), this money could vanish in seconds.

[–] truckerbrandon@alien.top 1 points 1 year ago

The money will only change your life momentarily. You kinda have to figure out what you're doing wrong with your life and fix that first.

Don't touch it, act as if you never knew about it. Go soul searching and get wiser.

[–] appleseedjoe@alien.top 1 points 1 year ago (2 children)

if it ACTUALLY doubles every 7 years you have a amazing financial advisor!!! id ask for proof that it has done that in the past and take out as little as possible to get yourself on your feet.

i went to a 9 month trade school for 18k. i made 91k my 2nd year and took two months off during that 2nd year. if you don’t know what you wanna do the trade’s definitely need people. i did welding but if i could go back im time i woulda went into plumbing. good luck!

[–] up_the_downstair@alien.top 1 points 11 months ago

https://money.usnews.com/investing/articles/the-rule-of-72

Basically he’s just assuming 10% annual return.

[–] snow_fun@alien.top 1 points 11 months ago

I’m curious as to why you would have chosen plumbing over welding??

[–] certifiedjezuz@alien.top 1 points 1 year ago

Honestly man, if you already admit you don’t have any business sense.

Please don’t start a business, your going to blow through the cash trying to make it work and be in the same spot.

You’re best bet is to take some of that inheritance, pay off the car, get your bills current and go to college/tradeschool.

I’m biased, i would recommend accounting. Public accounting (audit and tax preparation work) will start you at 60k/yr at most firms. 6 figures is possible within 5 YOE if you get your CPA license.

If you can add, subtract, multiple, divide you can be an accountant.

Won’t make you filthy rich but I’m living well.

I know this isn’t the answer you wanted to hear, but getting a lump sum of inheritance doesn’t mean you can run a business.

Plenty of rich kids go broke after their parents kick the bucket.

[–] GRABnGO2020@alien.top 1 points 1 year ago

whatever it is in that will ensure that it doubles in 7 years - so the 250K becomes 500K then just let it double. you may need to sell something to get you out your current space - so what ever 50K can do - not sure what state you live in and how far that can go --

to be clear that would be selling the REITS (which may be down significantly) to go find a safe space

hope that helps - but it is easy for 250K to go poof

[–] Negative-Look-4550@alien.top 1 points 1 year ago

First, get this passive business nonsense out of your head. Second, get a new job and/or new skills, and get out your financial mess. Third, leave it alone. Pretend this money never existed.

[–] fwm_likeitsironic@alien.top 1 points 1 year ago

Personally I’d make a realistic monthly budget and take 1 year worth out. Save everything I made from work that whole year. Use the year to make a plan or make steps towards whatever goals I wanted to work on.

Choose my next step, do I want to further my education, make a career change, travel, become more stable, focus on my health.

I wouldn’t touch the rest of the stocks though.

Don’t worry about upgrading your lifestyle and stick to upgrading yourself is my only advice. The rest can come after you’re good.

[–] SoundMango@alien.top 1 points 1 year ago

PLEASE DO NOT BUY A HOUSE WITH THE MONEY.

[–] djrexy7@alien.top 1 points 1 year ago

I would watch Undercover Billionaire, the Profit, The renovator, Pawn Stars, Shark Tank shows for Free on these sites. I would learn the principles and start making small money. I would read the 10x book online from Grand Cardone and apply the principles on a daily basis.

If you touch your inheritance WITHOUT being financially literate YOU WILL FAIL and LOSE it all. Leave the money where they are.

THE Profit -

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theflixer.tv

www2.putlocker.digital

Do a search for "10x rule pdf" and you will find it.

[–] Useful-Ad3773@alien.top 1 points 1 year ago

Consider a small business, maybe something you're passionate about.

[–] throwaway_83w2@alien.top 1 points 1 year ago

Not much, maybe a vacation to Monaco

[–] munesh372@alien.top 1 points 1 year ago

Everyone saying that hold on that 250k and go with your life and wait 7 years to double it. I mean it's ok but 7 years is a lot of time and you are also saying you are in a tough situation . For me 250k in seven years is just don't sit well with me rather i would take risk and invest . Because what will you do in those 7 years and you would be an old man until you became an millionaire. Nowdays there are many opportunities that you can invest and gain good profit. It's the era of online money making. If you are afraid of loosing and want to live a normal life then it's ok. But i would rather research market first and calculate risk then invest. You are not doing a gamble you will definitely learn something from there . And there are many opportunities like this in the market you have to find those yourself. It's only my opinion and iam already implementing this and learned a lot . Iam sure I will be successful in 1 year just wait to hear my story .

[–] FashionPollyanna@alien.top 1 points 1 year ago

Buy gold and look into masterworks dot com(hidden gem)

[–] zzzip101@alien.top 1 points 1 year ago

Invest a couple of grand or so in yourself learning a skill that youu can monetize and is in high demand to improve your current situation. E.g. marketing, a trade, degree, apprenticeship etc.

[–] MrDidinot@alien.top 1 points 1 year ago

Nah, spend some of that cash. He clearly stated he wants to get out of his current rut. Tomorrow’s not given lol. But seriously tho…Address your immediate concerns by allocating around 20% in cash for emergencies, held in a high-yield savings account. Let the remaining inheritance grow through existing investments for a decade. Research financial responsibility, consider a small property in a affordable area, and use part of the 20% for a mortgage down payment to build equity. Establish credit with a secured credit card, pay off loans, and invest in skill-building certifications to enhance your career or start a side hustle. Balancing immediate needs and long-term growth is way better than risking it on some business

[–] rupeshsh@alien.top 1 points 1 year ago

Bunch of questions

How old are you?

Why are you in a dead end job? Did you goto college? Can you goto college?

What city / type of city would you buy this house?

The most important thing to do is to get out of your dead end job lifestyle.

I would park 200k with the financial planners plan and invest 50k to either learn / upskill / goto college or buy a running business .

I won't touch the 200k till i can pay my bills.

Whatever you do, DONOT buy any course you see from any ad that is being shown to you ( I know you are already thinking)

[–] MicrobialMickey@alien.top 1 points 1 year ago

Take out $25k for yourself and spend on whatever you want and never touch the rest

[–] Jxey_n@alien.top 1 points 1 year ago

I agree with pretty much everything people are saying about the money being in the right place, and leaving it where it is will bring the best ROI, HOWEVER... No one is paying attention to the fact that you're broke and lack the skills to manage a large sum of money, so 7 years from now when it doubles, if you are still in the same place you will likely blow it anyway. 70% of lottery winners are bankrupt in a few years. (According to the National Endowment for Financial Education) even if you wait until its a couple mill you will likely blow it. So here's what I would do in 6 steps.

  1. Take a small amount of money out for 1 years rent, and look for a super cheap room-share of around $500-$700 (Lets say you're paying $900 including bills that's-$10,800 from the inheritance. Now you can stop stressing about sleeping on the street, and go from the defensive to the offensive.
  2. Next I would work at that dead end job for another 12 months, then invest all of my income and free time on learning business skills focusing on learning sales/digital marketing and accounting. No partying, no spending money on stupid Sh*t. This is not the season for that.
  3. After the 12 months, now that I have learned a few skills, I would look for a better job with skills that I learned (make sure you have certificates to prove your skills to employers). So now that I have a better job I can afford to pay my own rent. Then take out another $5000 to $10,000 to start an online business in my free time,
  4. Leave my job, once I have product market fit and I see the business growing well enough to over take my current salary (I would wait approximately 3 months while working both for myself and my employer then leave on month 4 to pursue the business. Oh and I'd wait 3 months to ensure its not a fluke/seasonality.
  5. At this point i would go all out to reach my first $100k whilst still living as lean as possible. At the $100K mark I would then start injecting money on business growth say 50K at that point to grow to a Million.
  6. Once I'm at a million I would then start adding money to the inheritance rather than taking it out.

Let me know if this was helpful!

[–] AlisterA2017@alien.top 1 points 1 year ago

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[–] TheJulieBee@alien.top 1 points 1 year ago

Your inheritance offers a significant opportunity. Consider using a portion to stabilize your immediate financial situation, like overdue bills and rent. Then, invest wisely, perhaps in real estate or a passive income source, aligned with your advisor's guidance. Acquiring financial literacy and possibly seeking a mentor in your chosen investment area can also be beneficial for long-term growth.

[–] Cappadonatello@alien.top 1 points 1 year ago

Doubling every 7 years is not slow growth.
I’d recommend trying to work on financial literacy before touching it. There are some free courses you can take, read some books.

Money is easier to spend than it is to make.

[–] Creative-Honey4668@alien.top 1 points 11 months ago

From a business prespective, if you want to try owning your own - keep living with minimial expenses and find something you can start with almost no upfront investment and start making money right away. Something like a power washing business/dryer vent cleaning, ect.

You have the ability to spend 1-2k on some equipment and can spend a few weeks going door to door, cold calling, and putting up some very cheap signs to find business. Set up a website yourself if you can figure it out with a simple request service form - there are guides online. Plan on spending some late nights learning, this will give you the foundation for future sucess.

If after a month or two your not making money on the business (and it is not seasonal) then look for something else. Don't spend much of your inheritance to start a business and don't think of it as anything but a small saftey net. 250k isn't that much in the grand scheme of things but it will provide some breathing space for the times things go wrong - make a dollar spend 0.99 = happy life whereas make a dollar spend 1.01 = miserable existance.

[–] CuriousDev1012@alien.top 1 points 11 months ago

If you have no idea what to do with it please just leave it and don’t waste someone else’s hard work/money they earned over the course of their whole life. I would kill for someone to just hand me $250k. If you’re young just leave it and let it grow.

[–] yellowegg000@alien.top 1 points 11 months ago

i suggest multi billion dollar bussiness

"fruit burger"

[–] munchy50002@alien.top 1 points 11 months ago

Wait a minute… on what basis is the prediction that it will double every 7 years?

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[–] bakakon1@alien.top 1 points 11 months ago

If you cant manage your finances with nothing you wont manage it with much. With that said. You have no experience aside from work.

Dont buy a house! You cant even manage an apt how much more a house with mortgage.

Take out enough to get you out of poverty. Pay for electricity and invest in learning a skill. Vocational school or something to improve your line of work/income and life. Find a nice job and live up to your means. Learn to manage your finances from scratch. Leave the rest the way it is. it will grow double dont touch it. You will thank yourself in the future.

[–] Nineteen_87@alien.top 1 points 11 months ago

I would learn money management first because it sounds like you’ll be in the same situation but on a larger scale in a few months/years. I am still working on my money management as well so don’t feel bad.

[–] AndrewOpala@alien.top 1 points 11 months ago

How about ... pay down as much of your debt that you can. Draw down the money to live off of while you fnd a job or business you want to master and volunteer to work at a place of your dreams for free. Learn the ropes and start your new life with the remainder of your money.

The wealthy do things that other people value. You want to be wealthy not always running from bill collectors.

[–] PennilessSlumlord@alien.top 1 points 11 months ago

250k at an any age under 40 can be expected to carry you through retirement if you leave it in an aggressive portfolio, as by 67 you’d have around 2 mil.

It’s far far more powerful to leave the money alone and let it grow unless you have an extremely solid business plan.

If it were me the most I would use is 10% to pay for a degree to earn more in a W2 role. But even then the temptation to spend will be hard to stop once it’s started. Best to just ignore the asset and let it do its thing. Also, highly recommend something like boggle heads vs a fund manager. Investment fees will eat you alive if you let them.

[–] ilyriaa@alien.top 1 points 11 months ago

Use some of the money to stabilize your living situation, even if it’s renting a cheap apartment. Catch your bills up. Pay off any high interest debt that’s drowning you.

And then to figure out what you’ll do for income - if you have no business sense, there’s no sense in starting a business. What if you go back to school?

It’s okay to use some of this money, but don’t get carried away. $250K really isn’t a lot of money and if it truly does dbl every 7 years, it is best to use as little as possible, but you also shouldn’t be living in poverty.

[–] amasterblaster@alien.top 1 points 11 months ago

I would just give yourself 1K a month on a schedule, and leave the rest, while you learn how to live a sustainable life.

I come from abject poverty, like homeless level poverty, and I can say that if I was given the money I have now, back then, it would have evaporated. As advice, I would learn how to save up 50K worth of your own money before even considering touching more than 1K a month of the 250.

250 seems like a lot, but it can go fast.

True story. Someone in my life close to me, a some years ago, got a settlement of around 150K. Around that time I had saved for many years and had 70K, working for like 25K a year (at that point). 7 months later we talked, and I had maybe 80K, and they had 10K left, and they were asking me for cash so they could make a home purchase. I was flabbergasted -- where did the 150K go in like 6 months ?!.

This is someone I grew up with, family. So be careful is what I am saying -- once you start using that money .... it can go

[–] designingproducts@alien.top 1 points 11 months ago

dude.. you have $250k and it will be $500k in 7 years??

how is that not enough incentive to just get you excited to start the day??

get into a new routine.. you're broke working a crap job.. stop doing what you're doing. you have the abiltiy to change your life around now knowing you have REAL money waiting for you.

you can try so many new things.. dont just jump into business without any idea or experince of what to do.. thats the fastest way to lose money

Why not go work at a bar. meet new people. socialize. make money and have your day time to work on a side hustle or new venture idea.

[–] DM_Me_Pics1234403@alien.top 1 points 11 months ago

First, do not buy a business, especially one that advertises itself as passive. A lot of these are known scams and without the business acumen to analyze the businesses, you will almost certainly be separated from your money.

Second, I think what would be best is to Improve your long term prospects, and focus less on your immediate needs.

I know this is easier said than done, but based on your post it sounds like you are at a crossroads in your life. If you play your cards right, you could be in a great position 10 years from now. If you folly, you could be in the same spot in 10 years time with the only difference being you feel a lot worse about it since you had the chance to get out.

As far as how you go about improving your position, the high level advice is to increase your earning power. That could mean going to college and getting a degree, going to trade school and doing an apprenticeship, or any other manner of increasing your skill set. It’s hard to give specific advice without knowing you. I went to college and got a degree in accounting. Took 5 years to get a degree and 3 years work experience, but I broke 6 figures in earnings and have made more every year since.

The other piece of advice I can give you is to avoid touching this money unless it’s absolutely necessary. If your money is doubling every 7 years, you’re likely earning around 10%. You DO NOT want to take the money out of that pool and spend it on something that earns less than 10%. Paying off credit card debt at 22%? Makes sense IF you cut up the cards and never make another charge. Paying off a car loan at 7%? Bad move. Paying tuition, when student loans are at 8%? Bad move. The TLDR is let that money grow. Even if it’s hard, you will be WAY better off for doing so. One big exception is to avoid bankruptcy. I’d pay off a 6% personal loan if the creditor was threatening to sue and my only other choice was going bankrupt.

Best of luck man! Let me know if there’s anything I can do to help! I know times are tough, but you are actually in a great position. Just takes some time and tactics to get where you want to be.

[–] Jerome_did_it@alien.top 1 points 11 months ago

If you have debt pay that shit off, then get stable.. then just let it grow.. you will feel so free with no debt and 200k invested.. with that freedom of not being in survival mode, figure something out that you would like to do and do it.

[–] AmbitiousManner8239@alien.top 1 points 11 months ago

Put it on red

[–] TriRedditops@alien.top 1 points 11 months ago

This money is already passive income. Take a small amount to fix your current issues. Pay off the car, get your rent situated, don't be paycheck to paycheck. Keep the rest invested.

Check out the personalfinance subreddit.

Entrepreneurship is kind of a gamble not a means to an end. It is unlikely that you will double your money every 7 years as a business owner. You might...but you might not.

[–] kingof_the_north@alien.top 1 points 11 months ago

You would not believe how quickly you can blow $250k. You’ll pay off your debt. Then because you know you can use just a little of the money you have, you’ll think you should get a better car, and a better apartment, and a TV and other bullshit and you’ll eat out every day, and you’ll be lazy about improving your life and career. Take it from someone who has done it. You can blow through that in a couple of years and have nothing. Do. Not. Touch it. Make it difficult for you to even have access to it. With your current situation, you’re going to have a difficult time retiring comfortably. Turn your life around and know you have this nest egg growing for your retirement if needed.

[–] Easy-Opposite599@alien.top 1 points 11 months ago

byt some residential units and put them on rent.

[–] Omg-Aj@alien.top 1 points 11 months ago

I’d say keep money where it’s at , learn to day trade futures market with about 500-1000$ balance trading 1 micro contract be your own boss don’t work for no one else

[–] vadim034@alien.top 1 points 11 months ago

Doubles every 7 yrs sounds too good to be true

[–] miamiscubi@alien.top 1 points 11 months ago

Don't you fucking touch that money. You have not demonstrated in any way that you have any ability to touch that money.

You also shouldn't buy a house unless you could sustain it without the money. You can barely pay rent, what will you do when insurance rates go up, when you need major repairs? This is one of the worst times to buy a home. Your best option is to not touch it at all.

Also, there is no such thing as passive business. I mean there is, but that income is priced into the purchase price, so you're going to wait a good 5 years before being able to do anything.

The real question is:

- how many hours are you currently working?

- what are you doing to get yourself out of your current situation?

- what can you do to reduce your monthly spending? Can you live with roommates or family?

Get yourself into a place where you have more financial stability ASAP.

[–] MichaelRoberts776@alien.top 1 points 11 months ago

The money will only change your life momentarily. You kinda have to figure out what you're doing wrong with your life and fix that first.

[–] Neat-Law5948@alien.top 1 points 11 months ago

Take the money and buy yourself a 300k house.

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