Welcome to The Money Coach, a Times of Malta column where readers can ask questions about life's money issues. Send your questions about personal finances, inheritance, gifting or other personal finance topics to moneycoach@timesofmalta.com. 

Dear Luca,

Dear Luca,

I have recently inherited €125,000 and a property worth €450,000 from my grandmother, who died a few weeks ago. It all happened so suddenly that I never actually thought about the inheritance until I received it, and even now, it seems surreal.

I am a 38-year-old father, have three children, and work full-time as an accounts manager. My wife works with the government. We lack for nothing, but I must be honest, we don't have much savings stacked up... and when it comes to investments, we never did much.

Considering all that, is saving all the inheritance be the wise solution? Should I put that sum towards buying another property? I am quite confused at the moment, as I’ve never had such an amount of money, and would really like to make the most of it, without mistakes which I could later regret.

Confused but Hopeful

Luca responds: 

Firstly, I am sorry to hear about your loss. I understand it’s a tough time for you and your family.

The most important thing is to take a breather; inheriting such an amount  of money always takes time to process

Reflect on the following before making any decisions:

1. Your goals
2. Aspirations
3. Current responsibilities

If you don’t have financial goals, find time to sit down with your wife and start building them on a common vision board. Having a plan that suits both you and your family will make the money you inherited more worthwhile.

If you don’t have an adequate emergency fund, dedicate a good part of the money to building it. Calculate 6-12 months' worth of expenses, or longer if it suits you better.

Then, yes, by all means, start exploring investment opportunities like real estate, stocks, etc. In such a case, I urge you to consider the services of a licensed financial advisor to guide you better.

Last but not least, I would leave a good chunk of the inheritance to pursue your passions, like allocating the money towards building personal or even business projects. The best return you can get is an investment in yourself. The money you inherit or earn should not just be there for saving or investing. I strongly believe in making the most of it now as well.

I hope that the above insights will help you formulate the necessary plan to start making the most of your inheritance.

Luca is the founder of the Money Coaching Hub. Email him your financial questions at moneycoach@timesofmalta.com

Disclaimer: This column is intended to provide general information on various topics related to personal finance. The information provided is for educational purposes only and should not be construed as personalised financial advice for your specific situation. Financial decisions are highly individual and can vary greatly based on your unique circumstances, goals, and risk tolerance. The author of this column is not authorised to provide financial advice. Before making any financial decisions, it is recommended to seek professional financial advice from an authorised financial advisor.