No Result
View All Result
NEWSLETTER
The Practical Saver
  • Home
  • Save money
    Fun Activity To Do When Bored at Home - Beach Ball Games

    Fun Activity To Do When Bored at Home – 10 Beach Ball Games

    how to get free food with no money

    How To Get Free Food With No Money Fast and Easy

    living on less

    Living on Less: How My Family of 11 Lived on $3/Day

    cash back apps | rebate apps | cashback apps | best coupon app | cashback on groceries | best cash back apps | best receipt app | grocery apps | cash back groceries | money back for grocery shopping | rebates for shopping | shopping rebate | cash back rebate | cash back for shopping | cash back store | shopping rebates | receipt rewards | cash back rebates | app for best prices | rebate sites | get cashback for shopping | save money groceries app | great days out cashback | best app to save on groceries | money back shopping | real grocery coupons | best buy rebates | how to save on groceries with apps | coupon sites grocery | store apps to save money | cash back coupon | 6 rebate | grocery rebate | coupon rebates | cashback best buy | online shopping rebates | coupons on receipts | money back on groceries | cash back at grocery store | top apps store | grocery coupons and rebates | app.receipthog.com Coupons | APPA Coupons | store rebate | rebate money | work incentive apps | shopping to get more cash | coupon rebate | easy cash back | grocery rebates | app that gives you a | shop and get back cash | shopping for cash | Apps that Pay Coupons | Create Supermarket App | store rebates | grocery coupon app | grocery coupon and rebate | food rebate | grocery store purchase | receipt money | shopping to get cash | top grocery coupon sites | rebate cash | money rebate | supermarket app android | apps that save on groceries | checkout 51 coupon | food reciept | food rebates | apps to save on groceries | grocery cash back | online rebate sites | fetch cashback | cash rebate check | just you cashback | earn cashback when you shop | what is cash back at the grocery store | coupon and rebate | rebate shopping | checkout 51 coupons | love the sign cashback | store rebate program | shop and get cash | cash back for groceries | get connected rebate | in store cashback | earn dollars online free easy | earn easy money online for free | rebate shopping | checkout 51 coupons | love the sign cashback | store rebate program | shop and get cash | cash back for groceries | get connected rebate | in store cashback | earn dollars online free easy | earn easy money online for free | free online money earning sites, Best Grocery List App gym accessories on a budget

    9 Best Grocery List Apps To Save and Make Money From

    amazon hacks

    25 No-Brainer Amazon Hacks To Save You Money

    how to stop overspending money

    How To Stop Overspending Money: 14 Tips and Tricks

    Trending Tags

    • Money Saving Tips
    • Frugal Living Ideas
    • Personal Finance
    • Spend less
    • Food Budget
    • Retirement Planning
    • Grocery Shopping
  • Make Money
    free paypal money

    13 Doable Ways to Earn Free PayPal Money Online

    how to make money fast as a kid

    17 Surveys That Pay Cash Instantly

    get paid to watch videos, work from home

    Get Paid To Watch Videos: 15 Easy Ways To Do It In 2020

    how to make money online without paying anything

    Seriously! How To Make Money Online Without Paying Anything

    under the table jobs

    Under The Table Jobs: 14 Paying Jobs To Make Money

    11 Legit, Easy Stay At Home Mom Jobs To Make Money Today

    Make $50 A Day Online: 18 Proven Ways To Make Money

    Trending Tags

    • Earn Money Online
    • make money
    • Passive Income
    • Personal Finance
    • survey sites
    • Investing for Beginners
    • Blog Ideas
  • Budget
    coinstar near me

    Coinstar Near Me: 5+ Money Hacks To Avoid the Fees

    benefits of budgeting

    13 Amazing Benefits of Budgeting Your Money

    get paid to watch videos, budgeting hacks

    Budgeting Hacks: 17 Ways On How To Stick To A Budget

    thanksgiving budget

    Thanksgiving Budget: 13 Easy Ways To Get More For Less

    Christmas tips for Budget shopping

    11 Proven Christmas Tips for Budget Shopping That Work (2019)

    how to create a budget

    How To Make A Budget: 11 Easy Ways To Do It (The Complete Guide)

    Trending Tags

    • Food Budget
    • Holiday Budget
    • Money Saving Tips
    • Personal Budget
    • Frugal Living Ideas
    • Shopping on The Budget
    • Travel Budget
  • Pay Off Debt
    improve credit score

    How to Improve Credit Score: 11 Tips You Need To Know Now

    how to pay off credit card debt

    How To Pay Off Credit Card Debt: 13 Proven Tips That Work

    how to save money, how to pay bills, can't pay bills

    Can’t Pay Bills? 3 Proven Steps To Get It Done

    how to pay off debt fast, student loan debt, pay off student loans, pay student loan education loan save money on back to school supplies Saving you money from insurance, mortgage, gas, parking, registration, and a lot more. financial mistake in college

    How to Avoid These Financial Mistakes in College

    how to pay off debt fast checkout

    How To Get Out Of Debt: $40K Debt to $70K Savings in 2 Years

    how to pay off debt fast, student loan debt, pay off student loans, pay student loan education loan save money on back to school supplies Saving you money from insurance, mortgage, gas, parking, registration, and a lot more. financial mistake in college

    Why College Students Should Consider An Education Loan

    Trending Tags

    • Credit Cards
    • Debt Help
    • Personal Finance
    • Spend less
    • Money Saving Tips
  • Home
  • Save money
    Fun Activity To Do When Bored at Home - Beach Ball Games

    Fun Activity To Do When Bored at Home – 10 Beach Ball Games

    how to get free food with no money

    How To Get Free Food With No Money Fast and Easy

    living on less

    Living on Less: How My Family of 11 Lived on $3/Day

    cash back apps | rebate apps | cashback apps | best coupon app | cashback on groceries | best cash back apps | best receipt app | grocery apps | cash back groceries | money back for grocery shopping | rebates for shopping | shopping rebate | cash back rebate | cash back for shopping | cash back store | shopping rebates | receipt rewards | cash back rebates | app for best prices | rebate sites | get cashback for shopping | save money groceries app | great days out cashback | best app to save on groceries | money back shopping | real grocery coupons | best buy rebates | how to save on groceries with apps | coupon sites grocery | store apps to save money | cash back coupon | 6 rebate | grocery rebate | coupon rebates | cashback best buy | online shopping rebates | coupons on receipts | money back on groceries | cash back at grocery store | top apps store | grocery coupons and rebates | app.receipthog.com Coupons | APPA Coupons | store rebate | rebate money | work incentive apps | shopping to get more cash | coupon rebate | easy cash back | grocery rebates | app that gives you a | shop and get back cash | shopping for cash | Apps that Pay Coupons | Create Supermarket App | store rebates | grocery coupon app | grocery coupon and rebate | food rebate | grocery store purchase | receipt money | shopping to get cash | top grocery coupon sites | rebate cash | money rebate | supermarket app android | apps that save on groceries | checkout 51 coupon | food reciept | food rebates | apps to save on groceries | grocery cash back | online rebate sites | fetch cashback | cash rebate check | just you cashback | earn cashback when you shop | what is cash back at the grocery store | coupon and rebate | rebate shopping | checkout 51 coupons | love the sign cashback | store rebate program | shop and get cash | cash back for groceries | get connected rebate | in store cashback | earn dollars online free easy | earn easy money online for free | rebate shopping | checkout 51 coupons | love the sign cashback | store rebate program | shop and get cash | cash back for groceries | get connected rebate | in store cashback | earn dollars online free easy | earn easy money online for free | free online money earning sites, Best Grocery List App gym accessories on a budget

    9 Best Grocery List Apps To Save and Make Money From

    amazon hacks

    25 No-Brainer Amazon Hacks To Save You Money

    how to stop overspending money

    How To Stop Overspending Money: 14 Tips and Tricks

    Trending Tags

    • Money Saving Tips
    • Frugal Living Ideas
    • Personal Finance
    • Spend less
    • Food Budget
    • Retirement Planning
    • Grocery Shopping
  • Make Money
    free paypal money

    13 Doable Ways to Earn Free PayPal Money Online

    how to make money fast as a kid

    17 Surveys That Pay Cash Instantly

    get paid to watch videos, work from home

    Get Paid To Watch Videos: 15 Easy Ways To Do It In 2020

    how to make money online without paying anything

    Seriously! How To Make Money Online Without Paying Anything

    under the table jobs

    Under The Table Jobs: 14 Paying Jobs To Make Money

    11 Legit, Easy Stay At Home Mom Jobs To Make Money Today

    Make $50 A Day Online: 18 Proven Ways To Make Money

    Trending Tags

    • Earn Money Online
    • make money
    • Passive Income
    • Personal Finance
    • survey sites
    • Investing for Beginners
    • Blog Ideas
  • Budget
    coinstar near me

    Coinstar Near Me: 5+ Money Hacks To Avoid the Fees

    benefits of budgeting

    13 Amazing Benefits of Budgeting Your Money

    get paid to watch videos, budgeting hacks

    Budgeting Hacks: 17 Ways On How To Stick To A Budget

    thanksgiving budget

    Thanksgiving Budget: 13 Easy Ways To Get More For Less

    Christmas tips for Budget shopping

    11 Proven Christmas Tips for Budget Shopping That Work (2019)

    how to create a budget

    How To Make A Budget: 11 Easy Ways To Do It (The Complete Guide)

    Trending Tags

    • Food Budget
    • Holiday Budget
    • Money Saving Tips
    • Personal Budget
    • Frugal Living Ideas
    • Shopping on The Budget
    • Travel Budget
  • Pay Off Debt
    improve credit score

    How to Improve Credit Score: 11 Tips You Need To Know Now

    how to pay off credit card debt

    How To Pay Off Credit Card Debt: 13 Proven Tips That Work

    how to save money, how to pay bills, can't pay bills

    Can’t Pay Bills? 3 Proven Steps To Get It Done

    how to pay off debt fast, student loan debt, pay off student loans, pay student loan education loan save money on back to school supplies Saving you money from insurance, mortgage, gas, parking, registration, and a lot more. financial mistake in college

    How to Avoid These Financial Mistakes in College

    how to pay off debt fast checkout

    How To Get Out Of Debt: $40K Debt to $70K Savings in 2 Years

    how to pay off debt fast, student loan debt, pay off student loans, pay student loan education loan save money on back to school supplies Saving you money from insurance, mortgage, gas, parking, registration, and a lot more. financial mistake in college

    Why College Students Should Consider An Education Loan

    Trending Tags

    • Credit Cards
    • Debt Help
    • Personal Finance
    • Spend less
    • Money Saving Tips
No Result
View All Result
The Practical Saver
No Result
View All Result

Home » 10 Smart Moves To Do With Your Settlement Money

10 Smart Moves To Do With Your Settlement Money

Allan LiwanagbyAllan Liwanag
January 22, 2020
in How To Save Money
4

This post contains affiliate links. If you click and buy, I may receive a small commission. Please see my full disclosure policy for details. 

10 Smart Moves To Do With Your Settlement Money
151 shares
  • Share

This “ 10 Smart Moves To Do With Your Settlement Money” post describes some suggestions you can do if ever you receive structured settlements, cash settlements, bonuses, or others that don’t happen all the time. This post contains affiliate links/ads. See disclosure policy. 

Just in case you receive a financial windfall, do you know what you should do with you money? Before you answer the question, let me tell you what a financial windfall is just to avoid confusion.

A financial windfall is quite often a life-changing event, that is, you’ll receive a big amount of money either from structured settlements like car accidents and mesothelioma claims, inheritance, bonus for accepting a new job, or any other settlement payments.

Now, back to the question… Do you know what to do with the money? If you do, then, that’s good but you still need to sit down and carefully think about what you are going to do with it before making any decisions. Remember, one or a series of even small bad moves can drastically affect you personally, emotionally, and financially.

There are people who won big-time through the lottery only to find themselves losing everything and becoming more indebted in just a couple of years. Please don’t think that what happened to them will never happen you, if you ever be in this position, because there’s always a possibility that it would happen. Again, never say never.

10 Smart Moves To Do With Your Settlement Money

Here are some ways you can do to avoid being one of those people who earned a huge sum of structured settlements or any form of cash settlements and end up in a worse position.

Know The Tax Consequences

Here are some situations where you can get a huge amount of money: (1) You hired the top personal injury attorneys for your legal case and won a hefty amount of structured settlements; (2) You receive a big bonus from a big company for accepting a job offer; (3) You receive an inheritance due to death in the family or something like that, and; (4) You won the lottery.

When you are in situations like the ones stated above, it is imperative that you understand the tax implications of receiving a windfall. Some settlements may be tax-exempted (as in the cases of some mesothelioma claims and accident and injury claims) but some are not (as in the cases of inheritance and lottery claims).

Your settlement may be subject to taxes. It is best to seek help with professionals such as CPAs and tax attorneys to make sure you pay the necessary taxes. If you neglect paying the taxes, you are looking at higher tax liabilities due to penalty and interest.

Read: 6 Best Ways To Spend Your Tax Refunds

Create a plan

Before you even make any moves that involve using your money, make sure that you create or have a plan.

Ask yourself what you want to do with the money. Do you want to buy a house or donate money to charity? Do you want to fund your retirement or spend years on vacation? Whatever your desire is, you always need to have a plan and, even better, a backup plan.

Like what I always say, you don’t want to go to a battle without a plan. More likely than not, you will lose or get wounded. The same analogy applies to planning on how to use your money.

Hire a professional

If you receive a huge cash settlement, you should consider hiring a financial professional. Avoid doing all the investing and saving all by yourself. You may be saving professional fees by not hiring a professional but you’ll have a greater chance of making investment and saving mistakes along the way.

I’m not a fan of financial advisors but these advisors can provide you guidance on what investment vehicles best fit your needs. They can also help you take away some of the stress that you are experiencing due to having such a huge amount of money.

But as I always say in my other blog posts, it is best if you educate yourself about investing and saving first before working with a professional. This way, you are not going into something that you aren’t aware of.

Get a life insurance

Just in case your settlement is through accident and injury claims, you may consider getting a life insurance.

I was in a car accident. When I received my cash settlement, I was told that receiving this money would mean that I won’t hold the insurance company liable in the future should there be effects related to the car accident.

This situation made me realize to get life insurance not really for me but for my family just in case I die (knock on the wood). I don’t know if anything will manifest years down the road after the accident. All I can do is get some coverage for my family. I say that it’s best to get life insurance especially when you are healthy and there are no negative signs or effects of such accident yet.

Invest in education

Just because you receive a huge settlement doesn’t mean that you should stop learning and educating yourself. I have always believed that education is one of the best investments you can make for yourself.

Use your cash settlements or structured settlements to fund your education. If you already have your undergraduate degree, you may still go to graduate school and use such fund. If you don’t have time to go to school full-time, you always have the option to attend part-time programs or take online classes.

Your education will not only help you personally but also professionally. This will help you as you seek better job and training opportunities as you go along with your career.

Invest in income-generating vehicles

When I say income-generating vehicles, I don’t mean trucks, SUVs, and cars. What I mean by these are investments either in the stock market, real estate, business, and others.

If you think what you received is ok to last you for a long time, then, feel free to keep the money in your bank. But if you desire to grow your money more, then, one of the best ways to do it is to invest.

You can put your money in the stock market and let it grow for a number of years. You can invest in real estate and rent the houses you bought for passive income. You can invest in businesses and earn both salary and profit.

You can also invest into real estate properties. The best part of buying properties is that you can transfer them to your loved ones.

Just make sure you understand all the paperwork that goes within the transfer of properties. This paperwork include, not are not limited to, deed of trust, quitclaim deed form, tax assessment, land surveys, among others.

But before you invest, always make sure that you are educated with the investments and know the risks and rewards associated with them.

Invest in your house

My mom always says that home is where you heart is. Invest by buying a house for you and your family. This doesn’t mean that you have to buy a big house. Buy a house that’s good enough for your family.

Remember, that buying a house has its own pros and cons. Therefore, you need to think about it multiple times before jumping into buying one. When you decide to buy a house, you need to factor in the costs of maintenance, homeowner’s associate fee (if applicable), taxes, among others.

Read: 30+ Money Saving Life Hacks

Give Back And Share Your Blessings

You receive structured settlements or cash settlements because you deserve them. In my opinion, you’ll be more deserving if you give back to your community in the forms of donation to charity, donations to church, and the likes.

Remember that donations (large or small) can make a big difference to the lives of other people. In addition, these donations can be used as tax deductions when tax season comes along.

As my mom always say, sharing blessings will make you feel good and will help you receive more blessings financially or non-financially.

Pay Off Your Debt and Save

To tell you the truth, it is really easy to forget your debt and to save when you suddenly receive a ton amount of money. Before you spend your money, make sure that your priorities are taken care off.

Pay your debt so you won’t have to pay additional fees and interest. If you have balances on your credit cards, loans, and other bills, then, you should make sure that you pay them off. For me, it’s always a good feeling when I know I don’t have any debt (small or big) on my shoulder. Without debt, I feel financially independent.

So, when you’re done with paying off your debt, does it mean that you’re done and can spend all the money you have? No, not yet. It is better if you stash money towards your emergency and retirement funds/accounts. Don’t say that you have a ton of money to use and that’s why you don’t need to save. That is really a wrong assumption.

Your financial advisor and family can help you figure out where you need to save and what you need to save for.

Read: Lesson Learned In Paying Off Debt


Side Note: Interested in getting $150 for FREE? Want to start funding your IRA for your retirement? If you are worried of paying too much fees, then, don’t fret. Motif’s clear advantage over other brokerage companies is that it has minimal fees. Open and fund your Motif Investing IRA + get $150 with a qualifying transfer10 Smart Moves To Do With Your Settlement Money 1.


Have Fun And Share Your Blessings

It’s your money. So have fun and make the most out of it. It doesn’t mean that you need to spend all of your money. What I mean is find a balance between saving and spending it.

Spend based on your needs and not on your wants. Because of the money you receive, you may be tempted to buy whatever it is that you want. Avoid succumbing to that temptation. Always stick with what you need and remain as frugal as possible.

Share your blessings with your family and friends and don’t be too stingy.

Have you received structured settlements or something like that? How did you spend your money or where did you spend your money on?

sa-captivate-placeholder
151 shares
  • Share

Related Posts

Fun Activity To Do When Bored at Home - Beach Ball Games
How To Save Money

Fun Activity To Do When Bored at Home – 10 Beach Ball Games

July 12, 2020
free paypal money
Make Money

13 Doable Ways to Earn Free PayPal Money Online

June 28, 2020
how to make money fast as a kid
Make Money

17 Surveys That Pay Cash Instantly

June 29, 2020
Tags: Debt HelpMoney Saving TipsPersonal Finance
Allan Liwanag

Allan Liwanag

Allan is a recognized personal finance expert, a Level II Certified Cost Estimator, and founder of The Practical Saver. His expertise has been featured in Business Insider, MSN, U.S. News and World Report, Yahoo Finance, NerdWallet, GoBankingRates, AOL Finance, CreditCards.com, HuffPost, Debt.com, Zillow, and Mass Mutual. He was indebted for $40K but paid it all off and saved $70K, at the same time, in 2.5 years under one low income of $39K/year. Now, he enjoys sharing his thoughts and experience on saving money, making money, paying off debt, and budgeting. Read more

Comments 4

  1. Jennifer says:
    7 years ago

    All great suggestions. I was able to use a windfall for a down payment on my home.

    Reply
    • Allan Liwanag says:
      7 years ago

      Thanks. That is good to know that your money went to a good purpose/investment.

      Reply
  2. Lori says:
    7 years ago

    Some very good advice. Now I will wait for my windfall. Hoping it’s from the Lottery.

    Reply
    • Allan Liwanag says:
      7 years ago

      Haha. That’s a good one.

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

The Practical Saver

About Allan Liwanag

Allan is a recognized personal finance expert and founder of The Practical Saver. He paid off his $40K and saved $70K, at the same, in 2.5 years under $39K/year salary.

His expertise has been featured in Business Insider, MSN, U.S. News and World Report, Yahoo Finance, NerdWallet, GoBankingRates, AOL Finance, CreditCards.com, HuffPost, Debt.com, Zillow, Mass Mutual, and various local media outlets. Read more

Next Post
How I Made Over $2,950.00 On My 5th Month Of Blogging

How I Made Over $2,950.00 On My 5th Month Of Blogging

NEWSLETTER

Don’t miss any new posts ever again! Subscribe to my mailing list to receive updates direct to your inbox! 

Click here

SITE LINKS

  • Contact me
  • About me
  • Careers
  • Advertise
  • Start here
  • Privacy
  • Sitemap

ABOUT ME

I am Allan Liwanag – The Master of Practicality. 
My family was indebted for $40K in 2013. Five years forward, we have saved more than $400K. We did that with trick-less, simple, effective money management that most people tend to overlook.

The Practical Saver Copyright © 2019.

No Result
View All Result
  • Home
  • Save money
  • Make Money
  • Budget
  • Pay Off Debt

The Practical Saver Copyright © 2019.