Inheritance Money: How to Maximize It


Getting an unexpected wealth can indeed put you in a difficult position. If you make the wrong step, you could end up spending way too much or even end up in debt because you were determined to maintain your new 'expensive’ lifestyle.

Inheritance is one example of an unexpected wealth. However, receiving one does not mean you can live large and spend without a care. If you want your inheritance to last a long time, it wouldn’t hurt to allocate it into investments.

Hans, 30, received an inheritance from his parents 3 years ago. According to him, he didn’t go out and purchase consumptive items with the money. “Once I received the inheritance, I immediately purchased a house. Apart from it being an investment, I can also live there,” he told LiveOlive.

He further explained that he spent 75% of the inheritance money on buying a house in cash at Bumi Serpong Damai (BSD), Tangerang. “I chose to invest in a house because the price will definitely go up and one day I can live there or I can lease it,” he added.

As for the rest, Hans said that he kept them in a savings account as a cash supply. “This is also just in case I want to open a business. But until now, I haven’t really wanted to. The most important thing is that the money is not static,” he said. He admits that he still allocates the inheritance money in investments because his daily needs can be met by his monthly salary.

The same thing was done by Laela, 30. In 2011, she received quite a large sum of inheritance from her father who had passed away. It came in the forms of a house and a sum of money. Not wanting to spend all of the inheritance, Laela immediately used the money to renovate the house so that she could rent it out as a boarding house and use the rest for investing in different types of investment.

“The inheritance wasn’t from my own sweat and bones, so I try to not use it as much,” said the mother of one child. She sticks by her principle, which is to use the inheritance money just for emergency funds. “I used the rest for investments,” she explained.

She explained that her inheritance money is currently allocated for gold investments and the Indonesian Retail Bonds (ORI). “If I count, I have allocated 70% in house and construction, 10% on precious metals and 20% on ORI and a car,” said Leala, who claimed to have learned how to invest from money management books.

Looking ahead, she said that she would only use the inheritance money as addition to pay for daily needs, which will be taken from the investment gains. “At this time I am also working and my main income is still covering the needs of my family,” she said.

Managing the new-found wealth that you get from inheritance looks simple but actually requires mature thinking and careful planning. If this happens to you, the first thing you should do is pay off all debts that are still making "holes" in your pocket. Use the fund for this purpose, then you can start thinking about investing, building business, shopping and other things.   

Read more: More to Know About Inheritance Conflicts

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