The Perfect Answer to “What Should I Do With My Money?”

Have you recently come into a lot of money or saved up a substantial amount and you’re looking for what to do with it to make it grow? Worry not! you aren’t alone. 

What should I do with my money is a question many are looking for answers to.  Having concrete answers to this question will surely put you on track to financial freedom. 

There are many investment options to consider for growing your finances, vacation rentals surpass them all.  If you’re wondering what to do with your new found wealth, we have all the answers. Read to the end!

What Should I Invest In?

The above question is synonymous to the question “what should I do with my money”. If you have been asking this question, the following are suitable answers for you:

  • Short-term Rentals/ Vacation Property

The vacation rental property market is currently booming due to the increase in the number of people going on vacation after the Covid-19 pandemic scare. Thus, savvy investors are keying into this real estate investing option to grow their portfolio. 

Suppose you’re considering what to do with your money, you might want to buy a vacation property in a place renowned for its tourist attractions, such as the Great Smoky Mountains in Tennessee. That way, you’ll have a vacation property that can also serve as rental when you aren’t using it.

Suppose you’re interested in owning a vacation property, consider going through this link to find available yet affordable vacation rentals that will suit your taste and preference.

  • Investment Trusts

To begin investing, we recommend starting with mutual funds rather than individual stocks or bonds. Firstly, since you lack experience; secondly, it enables you to invest in a diverse portfolio of stocks and bonds in a single transaction rather than trading them individually.

What Is a Mutual Fund?

Mutual fund is a sort of professionally managed investment whereby you pool your money with others to buy securities for the organization through the fund managers.

It’s a secure and economical investment vehicle. Rather than paying trading commissions on a dozen or more different stocks, you’ll either pay a single trading commission or nothing. A mutual fund is the first option that addresses the question, “what to do with excess cash?”. 

  • Bonds

Corporate, municipal, and treasury bonds are all types of bonds. They’re debt instruments used to raise funds for other businesses. They invest in new companies, community projects, and even the government. While no investment is risk-free, government bonds (T-Bonds) come close. 

Each bond has a 36-month term and receives weekly interest. You may redeem the bond at any time, even before maturity, without penalty.

  • Land Investment

Investing in land real estate is a perfect opportunity to build your wealth safely and help protect your savings from the effects of inflation. When you acquire a land, you obtain a  tangible asset whose value will increase over time. 

Why Invest in Land?

Many investors see the  purchase of real estate  as an excellent opportunity to generate passive income. However, buying an apartment or a house isn’t the only way to invest. 

Buying land, whether for residential or industrial use, is a good alternative if you want to make a real estate investment, and for this, you have to consider:

  • Location

In a great location, you have the possibility of finding a high return on investment thanks to the added value of the place. It’s considered an opportunity because there’s potential for development in the surroundings, so you must analyze where to invest in land.

  • Investor’s Plan on the Land

Some investors don’t intend to build anything on their lots and want to sell them back after some time after their equity has increased. 

Still, in addition, you could obtain an additional return if your land is fertile or if you have access to some natural resource, so you must carry out an analysis of where to invest in land and investigate the features of the available options. 

Regardless, buying land is the perfect answer to what is the best thing to do with a lump sum of money.

  • Residential Real Estate

Residential real estate is an investment that offers a high rate of return, especially if you have a great tenant that will regard the property as their own. However, you’ll need to consider the cons of being a landlord, such as being at the tenant’s beck and call and readily available to resolve tenancy issues if you have more than one tenant.

  • Certificate of Deposit (CD)

A CD enables an individual to deposit money for a predetermined length of time in exchange for a guaranteed return regardless of how interest rates fluctuate.

If you have up to $250,000, consider purchasing your CD from an FDIC-insured financial institution to ensure that you’re protected. The higher the yield, which ranges from three months to five years, the longer the investment time.

  • Invest in a Second Business

Investing in a second business might answer the question of “what to do with a large sum of money.”

The IRS estimates at least 41 million self-employed individuals in the United States, most of whom operate their enterprises to generate side income. 

Earning additional income through a side business can assist you in alleviating your financial burden. Investing your time and effort in a side business is, in the long run, an investment in yourself.

It’s also not as complicated as you may believe. The majority of side enterprises begin as a hobby or as a way to supplement your principal income. 

  • Consolidate or Pay Off Debt

The reality is that life is unpredictable. As a result, leaving some money behind will not be a bad idea. Paying down or eliminating debt is one of the most beneficial investments. A credit card with a 20% interest rate can save you if your income is jeopardized.

Additionally, repaying a credit card with a 20% interest rate is equivalent to locking a 20% investment return for several years. This act isn’t only about planning for the worst-case scenario but also about preparing for the best-case scenario.

It’s similar to accumulating financial reserves, and it works to your advantage whether you’re bracing for an impending storm or embarking on a new enterprise that will benefit your future.


It is critical to pay close attention to the question, “what should I do with my money?”. The truth is, it’s past time to make a financial commitment to yourself.

We recommend investing your money in vacation rental properties, mutual funds and buying lands, shares, and stock. Investing your excess cash will, in turn, yield maximum profits.

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