Whether you've managed to save $100,000 through sheer hard work or have been fortunate enough to win or inherit a similar amount, you'll want to make sure you get as much as you can out of your money. You could, of course, blow the lot on having the time of your life for a few months. Alternatively, you could sit down and think about how this money could change your life for the better.
Invest your $100,000 in real estate. If you're currently stuck in rental accommodations, using your nest egg as a down payment on a home could help lower your monthly housing costs. Putting down a large down payment on your first home can help you secure a cheap home loan if your credit is in good order. If you already have a mortgage, you could use your $100,000 to clear it. You should only do this if you can't find an investment vehicle that pays more interest than your mortgage provider charges. If you're mortgage free, consider buying a second property to rent out with a buy-to-let mortgage.
Save and Invest
If you want to guarantee the safety of your money, invest in treasury inflation protected securities, or TIPS. These are backed by the U.S. government and linked to inflation, meaning the value of your $100,000 won't go down in real terms if the cost of living rises sharply. Certificate of deposit accounts and short-term bonds also offer security for your money. If you're willing to take more of a risk, try your hand investing in the stock market.
Business or Career Change
You could use your money to pursue a dream job or further your education. A sum in the region of $100,000 could help you start your own business or allow you to quit your current job to go back to college. You could even put your $100,000 toward your living expenses while you write a book or try to make it as an artist. If you don't succeed, at least you'll be able to say you gave it a go.
Few people are fortunate enough to visit all the places they'd like to go to in their lifetime. This usually comes down to a question of money. Spending your $100,000 on seeing the world may not leave you with any tangible assets, but would be a memorable experience.
The commercial art world emerged from the credit crunch of 2008 and subsequent recession virtually unscathed. If you have a good eye and are able to distinguish a future masterpiece from the current passing art fad, there's a lot of money to be made investing in painting, sculpture and conceptual art. If you're looking for other alternative investment ideas, the increasing popularity of wine in emerging markets such as China may make investing in vineyards a potential winner.
Michael Roennevig has been a journalist since 2003. He has written on politics, the arts, travel and society for publications such as "The Big Issue" and "Which?" Roennevig holds a Bachelor of Arts in journalism from the Surrey Institute and a postgraduate diploma from the National Council for the Training of Journalists at City College, Brighton.